June was not pretty for sports betting in Colorado… at least from the operator’s side.
Colorado’s Department of Revenue reported on Tuesday that sportsbooks took in $313.2 million in wagers for the month of June, down 13% from May’s $360.3 million handle. However, Colorado’s legal sports betting action year-over-year increased by 44%.
Despite the NBA finals airing in the first half of June, baseball was still the most popular sport, accounting for 34% of all wagers. Basketball was the only sport where bettors, as a whole, beat the books in both retail and online.
The biggest jump in wagers came from hockey, as bettors were all-in with the hometown Colorado Avalanche marching to a Stanley Cup victory. The sportsbooks handle from hockey betting increased by 177% from June 2021, and for the entirety of the Stanley Cup Playoffs (May-June), operators reported $97 million in bets.
As for where the wagers are coming from, online sports betting is still king in the Centennial State: Of the $313.2 million in wagers from June, just $2.8 million — less than 1% — came from brick-and-mortar outlets.
Colorado’s taxable revenue falls
Coloradans enjoyed one of their best betting months ever… at the expense of the state’s coffers. Operators held only 2.1% of their wagers — their worst mark of 2022 — and their net sports betting proceeds were in the red by $1.9 million, the second time this year.
The total amount of monthly tax revenue dropped 83.3% compared to May, from $1.6 million to a paltry $268,280.
That said, Colorado’s sports betting revenue is still growing overall: for the fiscal year, betting has brought in $12.4 million — a 53% increase compared to this point last year.
Taxes on sportsbook revenue goes towards Colorado’s Water Plan Implementation Cash Fund, which is dedicated to the state’s water projects.
Before this fund sees any tax dollars from betting, a portion is removed to cover the work of the Department of Revenue, counseling services for problem gamblers, and to cover any lost taxable revenue on the casino industry.
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