Sports betting handles and revenues were down all over the nation in June, but Colorado’s betting operators got hit exceptionally hard.
Revenue Tumbles
June swoons are nothing new to sports betting operators around the nation, but the Centennial State saw its revenues fall a stunning 70% from May. The sports betting handle plunged nearly $75 million from $385.2 million in May to $310.7 million in June, while gross gaming revenues (GGR) fell to $9.2 million.
The state’s tax coffers were adversely impacted as well, seeing their cut of the revenue fall from $2.2 million in May to nearly $441,000 in June. It is not often we see sportsbooks lose money, but that is precisely what happened to the retail books in June as they dropped $674,000 to the public after winning $216,433 in May.
Tale of the Tape
Colorado June Revenue Report
- Online gross revenue: $9.9 million
- Retail gross revenue: -$674,061
- Total GGR: $9.2 million
May Revenue Report
- Online gross revenue: $31.2 million
- Retail gross revenue: $216,433
- Total GGR: $31.4 million
Percentage of Wagers by Sport in June
- Baseball: 33.7%
- Basketball: 18.7%
- Parlays: 22.4%
- Tennis: 7.6%
- Other: 4.6%
- Soccer: 3.8%
- Hockey-Ice: 1.5%
- Table Tennis: 2.5%
- Golf: 3.1%
- MMA: 1.3%
- Football: 0.4%
PlayUP Shut Down
PlayUP Colorado Sportsbook stopped accepting wagers on July 27th as the CEO, Daniel Simic, requested the book be put in “maintenance mode” after its New Jersey license was revoked for multiple violations.
This is the first instance of a U.S. sportsbook having its license revoked since online sports betting was approved after PASPA was overturned in 2018, clearing the way for online regulated mobile betting in the country.
The Australian bookmaker has not had an easy time of it in the states and now it is shuttered, at least temporarily, in the only two states in which it operated, New Jersey and Colorado. The company was anticipating funding to keep its operations moving smoothly and nearly had a $450 million deal with the now-defunct crypto broker, FTX, canceled.
“We did have big plans to launch in more states but we were funded by FTX, as you’re probably aware, and since their collapse, we’ve had to go back and re-think our strategy,” Simic said. “And that strategy is to really hone in on those states where we’re currently live now, which is New Jersey and Colorado.”
There have also been accusations that some employees have not been paid, to which Simic responded, “I’m just working through person by person to work out who’s staying on and who isn’t, and who’s been working for us for the last month and who hasn’t. Some have gone missing and don’t even respond to emails. So, I don’t know if they’re owed or they’re not owed.
“I’m not willing to just hand out cash. And they’ve been taking advantage of PlayUp for however long, you know, there’s going to be a situation where PlayUp will be suing them for false representation that they’re working for PlayUp and haven’t been.”
Calculators
