
Casino Gaming Revenue In Colorado Fell To $84 Million In November
This content was produced in partnership with Bazoom Group.
Colorado’s Department of Revenue has posted its gambling revenue figures for November, which show that casino revenue dropped nearly 7% from October 2024 and 1.11% from November 2023, to $84 million. As a result, the total taxes collected from the state’s physical casinos fell 1.55% year-on-year. In contrast, the state’s sports betting industry saw increases, with $648 million in handle: mobile sports betting saw especially significant gains for the period.
Gambling in Colorado
There are approximately 40 regulated casinos and racinos in Colorado. But, while online sports betting is regulated in the state, online casinos have yet to enjoy the same treatment. Currently, bettors must use offshore casinos in the state.
Crypto casino sites have become especially popular because they offer privacy and anonymity while offering access to a wide range of popular casino games. Cryptocurrency deposits and withdrawals are also quicker and less expensive than traditional payments. But, because the sites are not regulated by the state, Colorado doesn’t gain any tax benefits.
Colorado Casino Revenue
In total, across the state’s approximately 40 casinos, Coloradans placed $914 million in bets. This represents a 7.71% monthly decrease and a year-on-year decrease of 3.56%. While slot revenue and table revenue dropped 1.56% and 4.16% respectively compared to the same period the year before, table games saw an increase of 9.51%.
Slot games tend to be the most popular form of casino gaming, because slot machines are easy to learn and have fewer chances of errors on the player’s part. Slot machines can still have very generous prizes and return rates, especially if they include progressive jackpots.
The month’s 1.11% year-on-year decline also saw a drop of 1.55% in taxes compared to the year before, down to $13.7 million from $13.9 million.
Casino Regulations
Physical casinos are permitted in three towns across the state. There are also two tribal casinos and a racino. Various new laws and legislations have been passed in recent years to expand the state’s gambling laws.
In 2008, casinos were permitted to stay open 24 hours a day. In 2020, sports betting was introduced, after Proposition DD was passed in November 2019. Colorado is one of 38 states where sports betting is now regulated and the regulations also enable online sports betting in the state.
Sports Betting Handle
While casino gambling saw a decline in November, sports betting handle enjoyed a positive month. The Department of Revenue reported $648 in wagers placed with licensed operators within the state.
This compares favorably to the $608 million generated in November 2023, which was the first time handle surpassed $600 million. Gross gaming revenue from mobile sports betting wagering was $55.6 million, up from $28.2 million the year before. As a result, the state collected $3.9 million in tax, compared to $1.4 million in 2023.
The rise in sports betting handle was driven by the success of the Denver Broncos NFL team. The Broncos are 9-7 and playing for the chance to compete in the playoffs later this year. Pro football betting reached $161.5 million in the month.
The popularity of football meant that parlay wagers were the most popular type of bet placed. A parlay consists of two or more bets, and all bets in the wager must win for the bettor to take the profit. This type of bet is common in football because, while it reduces the likelihood of winning, it increases the potential payout players receive.
The second most popular sport with bettors was NBA basketball. $148.4 million was bet on pro basketball during the month, which was up slightly from $143.6 million wagered in November 2023.
Tax Cap Removal
In July, voters voted to pass Proposition JJ. The proposition removed a cap on sports betting taxes and allowed the state to keep all taxes for local water-related projects. The ballot passed with 76% of votes. Previously, the state was only permitted to keep $29 million per annum. Any tax above this level was previously returned to sports betting operators. At the time, State Senator Dylan Roberts said of the change: “We need to continue to invest as much as we can into this important endeavor.”
Further Legislation
It has been estimated that the state needs to raise $3.85 billion over the next 30 years, which means it still has a long way to go even after the removal of the tax cap. One way the state might consider raising additional funds is through the regulation and taxing of online casinos.
The move has generally been refused because of fears that it would cannibalize the performance of the state’s physical casinos. However, other states have proven this isn’t the case. In many instances, physical casinos have seen their profits increase after the regulation of iGaming.
Conclusion
Colorado saw a slight decline in revenue and tax from its physical casinos, but a significant increase in sportsbook handle. Sportsbook wagers on the NFL and NBA proved especially popular during the month, helping fuel the increase.
This content was produced in partnership with Bazoom Group.