Colorado Sees Drop in Sports Betting Revenue Despite High October Handle

 The Centennial State’s sports betting market had a strange October.

The Colorado Department of Revenue reported a massive $601 million handle for the month of October. That number represents a 6.8% increase compared to September and an 8.4% bump compared to October 2023.

While October’s handle was Colorado’s largest this year, sportsbooks didn’t benefit from it. Bettors posted a lot of big wins, leading to a drop of over 28.6% in revenue compared to last month.

Colorado Sports Teams Driving Bets

Like many other US markets, October represents one of Colorado’s busiest months for sports. The Colorado Avalanche, Denver Nuggets, and Denver Broncos are all in action at the pro level, while the University of Colorado has been competing for a Big 12 football title.

The state is going through a bit of a hot streak when it comes to those teams. The Avs and Nuggets have won championships over the last few seasons and are in a position to do so again. The Broncos have outperformed expectations as they push for a surprising playoff birth, while the Colorado Buffaloes are thriving under coach Deion Sanders.

Sports betting markets tend to see a surge when local teams are playing well, meaning this market could stay hot over the coming months.

Bettors Prefer NBA Over College Football

College football is often considered the country’s second-largest sports league, but that hasn’t been the case in Colorado. The NFL accounted for $168.8 million of the state’s October handle, but the NBA was second at $82.4 million. That is almost twice as much as college football, which saw $42.1 million in wagers.

The success of NBA betting in the state is primarily due to the success of the Nuggets. The team won the NBA Championship two years ago and has one of the league’s top players in Nikola Jokić. That has the fanbase at an all-time high, with many opting to wager on their impressive team.

Colorado Prepares for Jump in Tax Revenue

The Centennial State’s substantial sports numbers come at a great time. It recently passed an amendment that eliminated a cap on the amount of tax revenue the state can keep from the sports betting industry. The move was viewed as an alternative to raising the tax rate, meaning it didn’t face pushback from the state’s sportsbooks.