Colorado’s Betting Industry In A Strong Position For 2024

America’s gambling industry is worth billions of dollars every year, despite complicated legislation that sees regulations change by state.

All gambling activities in the country are subject to federal and state legislation, and each state is granted the autonomy to determine its own rules.

Colorado has relatively open regulations on gambling, with land-based casinos, state lotteries, horse racing, social gambling, charitable raffles and bingo, and online sports gambling all permitted, but the state does not allow online casino gambling.

This has seen a rise in the popularity of offshore online casino operators, with a selection of traditional and contemporary casino games available to consumers. These convenient alternatives to land-based casinos also offer a variety of payment methods, with cryptocurrency and Pix casino options making it even easier for players to deposit and start playing.

Despite these alternatives, Colorado’s gambling industry is already showing an excellent performance that could result in record-breaking revenues for 2024.

Colorado’s Casino Market

Colorado has a great selection of land-based casinos for consumers over the legal age of 21. The state has entered into two compacts with Native American tribes who are able to operate casinos on their land.

The Sky Ute Casino Resort is located in Ignacio, La Plata, and is owned by the State’s Southern Ute Indian Tribe. The Ute Mountain Casino Hotel operates in Towaoc, Montezuma and the Ute Mountain Ute Tribe is in charge of operations here.

The dozens of other privately run operations have meant that the state has enjoyed a lucrative first half of the year after promising early signs. First quarter figures saw the revenue for land-based gaming operations rise by 2.2% to US$85.2 million.

The vast majority of gaming revenue came via slot machines with a 2% year-on-year rise to $70.7 million in figures in January for their adjusted gross receipts. Colorado casino table game revenue has risen to $14.5 million, an increase of 3.3% from the same time last year.

This is great news for the state with taxes from the casino betting industry rising by 3.4% to $14.7 million.

The tax rates for casinos in Colorado for adjusted gross proceeds are 0.25% for up to $2 million. 2% for an AGP of between $2 and $5 million, and 9% for between $5 to $8 million. 

Tax rates increase the higher the AGP in Colorado and figures of between $8 million to $10 million result in an 11% tax levy, 16% for between $10 million and $13 million, and any AGP over $13 million is taxed at 20%.

The industry was further buoyed by news later in the year that 2024’s first half saw the gaming revenue of the state’s 33 casinos combined reach $550.1 million. This figure was boosted by a strong June that saw gaming revenue reach $93.2 million, a 3% rise.

Many states divert betting tax revenue to local community programs, improving town and city infrastructure, and education scholarships.

The Possibility of Online Casino Operations in Colorado

There are no pending bills in motion for the legalization of online casino operations in the state of Colorado, but this does not mean there is no possibility of change in the future.

While operators are currently prohibited from setting up in the state, laws do not prohibit consumers from accessing offshore sites and apps. This allows consumers to make the most of the great offers and markets available from offshore and crypto gambling sites.

While this is great for consumers, the state is missing out on lucrative revenue streams and could see moves to create a regulatory framework that would allow businesses to set up in Colorado.

Colorado consumers would also benefit from improved security measures with licensed online casinos operating in the state. This is because they would have to adhere to the regulations established by the governing body.

Colorado’s Sports Betting Market

Colorado legalized sports betting in 2020 to become the country’s 18th state to allow the market to operate in its jurisdiction. The proposition passed with votes making up 50.8% in November 2019 and launched the following May.

The legal age of sports betting was set at the same as casino betting at 21, and online operators carry out age confirmation checks during the sign-up process.

In the four years that sports betting has been operational in Colorado, millions of dollars have been spent by sports fans backing local, national, and international teams in a variety of sports and events.

June’s figures made great reading for the industry as it was announced that the month’s handle of $350.4 million represented a 12.8% year-on-year increase.

June’s gross revenue for Colorado’s sports betting industry showed an eye-watering year-on-year increase of 206.5%, rising from $9.2 million in 2023 to $28.2 million this year.

However, while this might seem like an incredible leap, all is not as it seems. Last year’s gross revenue was significantly dented by the Denver Nuggets clinching the 2023 NBA title. While a local team getting to a Major League final will obviously generate a lot of betting activity, many sportsbooks would have had to pay out after the Nuggets victory.

The handle generated by different sports has its ups and downs through the year as seasons finish and playoffs or finals see a lot of publicity. Baseball was the big market for June with a handle almost double that of its closest rival. Baseball betting in Colorado for June saw $104.1 million in bets placed, resulting in $5.6 million in revenue. The next closest sport was basketball which raked in $59.2 million which resulted in $3.9 in revenue.

Challenges Facing Colorado’s Betting Industry

Colorado’s betting industry is booming, and the potential of adding licensed online casino betting to this will only improve its figures. But all industries find themselves competing in challenging climates, and the betting industry is no different.

A challenging economy and uncertain political future are a threat to all leisure activities, including betting. 

Rising living costs including food and fuel are a direct result of national and international political unrest. This means that consumers will have less to spend on non-essentials.

Stiff competition from offshore operators is also threatening profits. Deals and offers being offered by external online betting sites, and a larger betting market selection could negatively impact Colorado’s online betting industry.

Conclusion

While there will always be threats to any industry, the continued growth shown by Colorado’s betting industry illustrates its strong foundations and loyal customer base. Land-based casinos and betting operators are still experiencing growth, despite online alternatives that provide a more convenient option.

The six states to legalize online casinos have all experienced growth in their land-based operations as well. This will help to allay fears that passing legislation to allow online casino operations in the state could harm the physical casino industry.

The state’s sports betting market is also extremely healthy and is helped by the excellent selection of competitive Major League teams in Colorado. This includes the Denver Broncos, Denver Nuggets, Colorado Rockies, Colorado Avalanche, Colorado Rapids, and many more.