Colorado’s Growing Gambling Industry and the Future of Gambling ​​​​​​​​​​

Colorado’s gambling industry is expanding quickly and is now a significant contributor to the state’s economy. With the addition of new games, higher betting limits, and additional investments, more people, including tourists, are choosing to gamble in the Centennial State, driving economic growth. This article explores the current status of gambling in Colorado, the reasons for its growth, and what the future of the gambling market could potentially be.

The Rise of Online Gambling in Colorado

The popularity of online gambling in Colorado is on the rise due to the legalization of sports betting, allowing players to easily place bets using their mobile phones. While traditional casinos remain a popular option, online casino gaming is prohibited. Several forms of gambling are legal, including horse racing, limited gaming in casinos, and sports betting. 

Techopedia’s Vlad Grindu explains that different online casinos in the US offer a wide selection of casino games, including classic table games like blackjack, roulette, and poker. These online casinos offer various bonuses to maximize your chances of winning, including welcome bonuses, match deposit bonuses, and reload bonuses. Although real-money online casinos are not yet fully legal, offshore gambling is in a legal gray area. This means that Colorado residents can access offshore regulated gambling sites.

Colorado’s Gambling Market: A Flourishing Industry

Colorado is a mid-sized player in the commercial gambling market. Although the state is not as large as Nevada or New Jersey, it is a stable and growing market. 

Casinos

Colorado has 35 licensed casinos located in Central City, Cripple Creek, and Black Hawk. These casinos employ approximately 19,129 people, with the total revenue reported at $1.48 billion. The casinos contribute significantly to the state’s economy, paying a total of $597.9 million in taxes. The taxes generated from casinos support various public services, including parks and education.

Sports betting

Colorado legalized sports betting in 2020, allowing wagers on professional and college sports such as college baseball and basketball. In April 2024, the state reported $32.03 million in revenue from sports betting, which was substantially lower than the March figure of $45.04 million. The sports betting handle has shown fluctuations but overall reflects growth since legalization.

Lottery

A significant portion of the Colorado Lottery revenue is allocated to protect the state’s environment and outdoor spaces. In 2023, the lottery generated $890 million from ticket sales. A portion of the revenue generated went to the Great Outdoors Colorado (GOCO), which funds the parks and trails. An additional 40% of the revenue goes to the Conservation Trust Fund to protect wildlife and open spaces. At least 10% of the revenue generated from the state lottery helps support Colorado Parks and Wildlife.

What’s Driving Colorado’s Gambling Sector?

New Rule Changes to Constitutional Amendment

In 2020, Amendment 77 allowed local voters in Central City, Cripple Creek and Black Hawk to decide on increasing the maximum bet limits beyond the $100 cap. The changes included new games beyond the permitted games which included slot machines, blackjack, poker, roulette and craps. 

The amendment aimed to increase the competitiveness of Colorado’s casinos, especially in light of the challenges land-based casinos faced during the pandemic. The change in Amendment 77 was met with support from casino operators who believed that greater flexibility in betting limits as well as the new game offerings would attract more visitors and increase revenue. Since amendments 50 and 77 removed betting limits, gambling participation increased as legal changes made it more accessible across the state. This growth coincides with rising revenues from table games and slot machines.

Sports Betting Growth

Since the legalization of sports betting in May of 202, Colorado’s gambling sector has seen substantial financial growth. By April 2024, the state generated $32 million in revenue. Key contributors to this growth included:

• Enhanced accessibility: The ability to place bets online significantly increased participation. This convenience attracted a broader audience including casual gamblers.
• Diverse betting options: The diversity in betting options increased the appeal of sports betting in the state. Besides college sports, the state allowed players to bet on major sporting leagues like the NFL and NBA. Additionally, betting on esports was approved by the Esports Integrity Commission (ESIC).
• Mobile betting: Mobile sports betting has become a significant component of the state’s gambling landscape, driving participation and revenue.

Tourism 

Colorado’s economy benefits greatly from both tourism and gambling. Casino tourism plays a crucial role in the state’s economy, contributing to job creation and local government revenues. Expert predictions forecast continued growth in Colorado’s casino tourism. The state’s marketing efforts and regulatory frameworks are expected to increase the state as a gaming destination.

Technology

Technology has made it easier and more convenient than ever for players to gamble. Mobile gambling apps allow players to bet on sports, play slot games, and participate in other casino activities from anywhere. This convenience has expanded the market because more people can participate.

Challenges Facing Colorado’s Gambling Industry

While the future looks bright, Colorado’s gambling market faces some challenges:

• Regulatory challenges: The government must find a way to let people gamble and keep them safe. They need to make sure gambling businesses can grow, but preventing illicit activities can be challenging.
• Online gambling: Although online gambling is illegal, residents can access offshore online casinos. This means the state is missing out on revenue from taxes. Colorado’s population of over 5.7 million is an untapped market for online casino gaming, which could translate into significant revenue generation if properly taxed and regulated.
• Competition: As neighboring states expand their gambling markets, Colorado faces increased competition. States like Nevada and New Jersey are big competitors, and even closer, states like Wyoming could take away from Colorado’s gambling business as the state continues to expand their gambling offerings.

The Future of Gambling in Colorado

Although there was a dip in sports betting revenue in April 2024, compared to the previous month, people think that gambling will make more money in the future. Casinos are adding new games, and technology is making gambling more fun. 

• Legalization of Online Casinos: There are ongoing discussions among lawmakers about the legalization of online casinos in the state. Should this law be passed, it will legalize online casinos in the state. 
• Increased focus on responsible gambling: As gambling expands, there is an increased focus on responsible gambling measures. The Self-Exclusion Program launched in September 2023 and was managed by the Problem Gambling Coalition of Colorado. The state has since taken over and expert predictions see this as a move towards stricter regulations and responsible gaming measures.

Conclusion

There is optimism that Colorado may eventually legalize online casinos, given the revenue generated from sports betting. As neighboring states expand their gambling markets, Colorado faces pressure to remain competitive. Legalizing online casinos could help retain players and attract visitors to the state. While sports betting has become a significant source for the state, the success could potentially lead to discussions about the potential expansion of the state’s online gambling market.