Colorado Sports Betting Companies Lose Big As Nuggets Win NBA Title

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Colorado sports betting

Colorado sports betting operators lost $10.8 million on basketball bets in June as the Denver Nuggets made a run to an NBA championship.

Sportsbooks accepted $57.9 million in basketball bets, online and in-person, during the month. According to figures released Monday by the Colorado Department of Revenue, operators paid out $68.7 million in winning basketball wagers.

Basketball bets accounted for about 19% of all betting during June. Baseball bets accounted for 34%, followed by tennis (8%) and soccer (4%.)

CO sports betting revenue monthly hit

Colorado sports betting revenue took a monthly hit in June as operators paid out those winning basketball bets.

Total CO sports betting revenue topped out at $9.2 million in June, a 71% decline from May when sportsbooks produced $31.4 million. Operators posted a 3% win rate, or hold, for the month across all sports, well below their 6.7% average.

The $9.2 million in June revenue was the lowest total in the last 12 months. Sportsbook revenue reached $6.7 million in June 2022 on a 2.2% hold.

Handle and taxes down, too

Sports betting in Colorado accounted for $310.6 million in overall June handle. It is a slight decrease from the $313.2 million in total handle from the same month last year.

Colorado collected $441,951 in sports betting taxes in June, also its lowest monthly total since June 2022 ($268,280.)

Local wins mean less revenue, taxes

Denver’s NBA championship is much like other local victories. They provide a boon to bettors while hurting the sportsbooks’ bottom line.

Nevada sportsbooks lost $6.6 million on hockey bets in June as the Vegas Golden Knights cruised to a Stanley Cup championship.

LSU winning the College World Series boosted Louisiana sports betting handle in June. However, taxes and revenue took a hit, with online sportsbooks in Louisiana losing $1.7 million on all baseball bets last month.

After the Kansas City Chiefs won the Super Bowl, Kansas received just $1,134 in sports betting tax in February.

Fiscal year totals for CO sports betting

Colorado closed out fiscal year 2023 with $5.17 billion in total bets. It is a 7.5% increase over the prior fiscal year, which saw handle reach $4.81 billion.

CO sports betting taxes surpassed $25.5 million in fiscal year 2023, a 105% bump over the 2022 fiscal year tax collection of $12.4 million.

The Colorado state fiscal year runs from July through June.