Sports betting has become quite common today, but that has not been the case. It can all be traced back to 2018 when the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA). This ruling allowed states beyond Nevada to determine whether and how to legalize and regulate sports betting. Colorado voters would then approve Proposition DD in November 2019, and in May 2020, the first legal sports bets were placed in the centennial state.
Since then, Colorado online sports betting has grown tremendously. And today, we’ll look at the numbers, as well as the factors contributing to this success.
The Numbers
Since May 2020 up to April 2023, more than $12 billion of bets have been placed within the rectangular borders. This is quite a huge number, and it has translated to over $40 million in tax revenue for the state.
Out of the total bets placed, 98.7% have been placed online. This shows the increasing popularity of online sports betting to the extent that retail sportsbooks have now started closing shops.
According to the data from the Colorado government records, Basketball has been the most popular sport among sports betting fans. The sport is responsible for 24.7% of the bets placed, followed by pro football at 15.87%. We then have Baseball, NCAA Basketball, Tennis, Hockey, and Soccer as the other most popular sports.
What are the Factors Behind the Success?
The popularity of Colorado sports betting can be attributed to several factors.
A favorable regulatory environment
One of them is that the state has done quite well in terms of the regulatory environment it has created. The first of these is a low tax rate, which is 10% in the state. This is quite low, especially when you consider that some states have rates that go up to 51%. To mention a few, Massachusetts has 20%, Illinois 15%, and Pennsylvania (36%). So as you would expect, Colorado is attractive to sportsbooks as they get to keep more of their profits.
Besides that, the Colorado Department of Gaming has also done a recommendable job in regulating the market. The department has created rules that are fair and transparent. These rules have also been quite effective in protecting betting fans.
A large & passionate sports fan base
According to a recent study, 80% of Coloradans say that they are fans of pro sports. One of the reasons why is that there are several pro teams based in the state. Each of these teams has a large and loyal following, and this naturally translates into a high demand for sports betting. The appetite for the thrill is also increased by the fact that Colorado also boasts a strong presence of college sports.
Strong marketing and outreach efforts
Sportsbooks in Colorado have been active with various marketing campaigns, which have been key to promoting sports betting in the state. In fact, these promotions became quite popular in the state until some legislators considered banning them, but the bill was ultimately defeated.
One of the ways through which sportsbooks have managed to attract lots of users is by offering sign-up bonuses, free bets, and other promotions. Some sportsbooks, such as Betway, have also created specialized mini web apps specifically for Colorado sports betting, which makes sports betting quite easy.
What Does the Future of Colorado Sports Betting Look Like?
All over the US, sports betting is growing as more and more sports legalize it. Lots of people are also just becoming aware of sports betting, and it is quite easy to get started thanks to mobile sports betting. For several years to come, you can expect that the market will continue to expand.
Support Northern Colorado Journalism
Show your support for North Forty News by helping us produce more content. It's a kind and simple gesture that will help us continue to bring more content to you.
BONUS - Donors get a link in their receipt to sign up for our once-per-week instant text messaging alert. Get your e-copy of North Forty News the moment it is released!
Click to Donate