The legal sports betting scene in Colorado has proven that it is not immune to the expected seasonal slowdowns within their industry. The Colorado Division of Gaming released their April legal sports betting numbers Tuesday and they revealed that the lack of NFL and March Madness kicked off the annual slump for the industry.
April’s numbers close the book on an interesting full year of legal sports betting in Colorado. From launching in the middle of a global pandemic, to soaring throughout the NFL season to settling in as a top-5 bet-friendly state, Colorado has seen it all in 365 days and looks poised to maintain their position in the second, or possible third tier of US legal sports betting jurisdictions.
“In U.S. sports betting, there isn’t any real substitute for the popularity of the NFL or the NCAA Tournament,” said Ian St. Clair, analyst for PlayColorado.com. “But even with a monthly decline in wagering, Colorado continues to fare well compared with similarly sized states. The circumstances now are radically different from last year’s pandemic-plagued launch, and there is reason to believe that the state will be back to full speed once football returns.”
Breaking Down the Numbers
With the betting menu slimmer than in previous months, sportsbooks in Colorado reported a $244.5 million handle in April, down 18.8% from $300.1 million in bets in March, which falls exactly within the range of the declines that have already been reported in other jurisdictions within the US legal sports betting scene. April’s figures represent just the second time in Colorado’s 12 months of operation that the industry has reported a decline.
Revenues also dropped. Gross Gaming Revenues came in at $17.6 million for April, down 13.8% from the $20.4 million reported in March. The hold was 7.19% in April, up from 6.77% in March and tax contributions from the state’s sportsbooks came in at $1.1 million, an actual slight 2.1% increase from the $1.06 million in March.
The Bulk of the Handle
Colorado continues to be one of the most successful mobile betting spaces in the nation. In April, 98% or $241.9 million of the state’s overall handle came from mobile betting apps. That represents an 18.1% decrease from the $295.2 million in March.
Basketball once again came in as the biggest bet on sport in the state in April and that trend could hold throughout May with the NBA playoffs officially in full swing. The NBA contributed $84.3 million in April which actually represents the league’s lowest total in three months and the NCAA Basketball tournament betting spilled over into last month as well.
Baseball was second on the list wit $43 million in bets, hockey was next with $10.6 million and table tennis once again made an impact on Colorado’s overall handle with a head-scratching $9 million in contributions.
Following the Trends
The whole of the US legal sports betting industry experienced a handle and revenue slide in April. And that slide is expected to continue throughout the summer before the bread-and-butter NFL season kicks off. The Olympics, if they do indeed take place and Euro 2020 could provide a spark but likely not enough to make a tangible difference.
There was not one jurisdiction within the US scene that did not experience an April slide. New Jersey dropped 13%, Pennsylvania slid 14.4%, Michigan dropped a healthy 28.5% and Indiana saw a 25% drop in their month-to-month handle.
In the End…
Colorado’s legal sports betting scene is as strong as any in the nation. From May 1, 2020, through April 30, 2021, the state reported an impressive $2.3 billion overall handle, $147.4 million in sports betting revenues and $6.6 million in tax contributions for state and local coffers.
“The outlying metric continues to be the state’s take, which may yet need to be adjusted to ensure that the industry is working for every stakeholder,” said Jessica Welman, analyst for PlayColorado. “Still, considering the circumstances of its launch, the first year of sports betting in Colorado was a success.”
So, while the summer sports betting slide is expected to continue, there are those that think that Colorado won’t be as adversely affected as others. As Ian Sinclair put it: “Colorado’s unique mix of betting interests does help flatten some of the seasonal swings that some other major markets experience. If the Nuggets and Avalanche can make deep playoff runs and the Olympics pique interest, Colorado stands a good chance of avoiding the worst of the typical summer swoon.”
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