In March, Colorado sportsbooks experienced a record-breaking month, generating $35.4 million in net sports betting profits. This resulted in tax contributions exceeding $3 million for the first time since sports betting became legal in the state in May 2020.
The tax revenue collected in March from sports betting amounted to $3,103,024. This revenue is generated through a 10% tax on net sports betting profits, which is calculated based on the total handle minus deductions for payments and free bets. Additionally, there is a 0.25% federal excise tax on the total handle.
03 betting has been down somewhat compared to 03 2022
In March, the total sports betting handle in Colorado reached $494.4 million, showing a 16.3% increase from February’s handle of $425.1 million. However, it fell short of the $500 million mark, resulting in a 2.2% year-over-year decline compared to March 2022’s handle of $505.6 million.
Despite the slightly lower handle, sportsbooks were able to generate solid revenue. With a 9.3% hold, they retained $45.9 million after paying out $448.5 million in winnings. This resulted in Gross Gaming Revenue (GGR) of $45.9 million, the second-highest in the state’s history and a 103% increase from February’s GGR of $22.6 million.
While September 2022 remains the month with the highest GGR at $51.3 million, March’s performance was still strong. The net gambling proceeds (NSBP) and tax contributions for March were not as high as in September, but they still reached over $20 million and contributed over $2 million in taxes.
| Month | Manage | GGR | Keep % | NBSP | Tax |
| 03 2023 | $494. 4 mil | $45. nine million | nine. 3% | 35 dollars. 4 mil | $3. one million |
| Sept 2022 | $450. 2 mil | $51. three or more million | eleven. 4% | $31. 7 mil | $2. 99 million |
| The month of january 2023 | $547, 189, 025 | $35, 482, 562 | six. 5% | $22. 5 mil | $2. 586 million |
| Dec 2022 | $518, 088, 768 | $40, 909, 238 | seven. 9% | $25. 8 mil | $2. 584 million |
| Nov 2022 | $552, 603, 013 | $37, 569, 022 | six. 8% | $24. 4 mil | $2. 582 million |
| Oct 2022 | $526. 6 mil | $36. five million | six. 9% | $21. 1 mil | $2. three or more million |
The year-over-year net gambling proceeds (NSBP) experienced remarkable growth, increasing by 271.5% from $13 million in February 2022. This brings the financial year-to-date NSBP to $209 million, reflecting a significant 273.2% year-over-year increase. The taxes generated from these NSBP for the fiscal year-to-date amount to $20.3 million, showing a growth of 225.2% compared to the previous year. With three months remaining until the close of the financial year, these figures indicate a strong performance in the Colorado sports betting market.
Parlays notch sportsbooks’ biggest Watts
In Colorado’s sports betting market, professional basketball received the largest portion of wagers, totaling $193 million. NCAA basketball came in second with $94.3 million in wagers. The hold percentages for these sports were 7% and 4.6%, respectively. When it comes to parlays, which are a separate category, they accounted for an additional $90 million in bets. However, the returns from parlays were lower, totaling $75.5 million, resulting in a hold percentage of 16.4%. Despite having less handle than professional basketball, parlays generated more profit, totaling $14.8 million compared to professional hoops’ $13.5 million. Outside of these three categories, ice hockey ($25.3 million) and tennis ($25.1 million) were the only other sports with handles exceeding $20 million. Football came close with $19.4 million in handle.
Getting into the lifeless zone
March indeed marks the end of the high season for sports betting, with football and college basketball season coming to a close. The NBA and NHL playoffs will carry the torch during the spring, but once they end, only football, tennis and golf will remain until the start of the football season in September. During the next five months, it is expected that there will be a decline in handle of around 30-to-50% from the peak highs. However, this is a normal seasonal trend in sports betting. Colorado sports bettors have been punching above their weight class in terms of population, establishing themselves as a top-10 market in the US over the past three years. There is also hope for Broncos fans with offensive mastermind Peyton Manning now at the helm. If Manning can improve the team’s offensive performance and the Broncos can compete for the playoffs, the fall season could bring new records in terms of handle, revenue and tax contributions.
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