Colorado Sportsbook Revenue Drops Over 50% in December

The Colorado sports betting industry had a dismal year at the end of 2024, according to the Colorado Department of Revenue. Sportsbooks processed $648.4 million in wagers in December, which is essentially unchanged from the $648 million total in November.

The year-over-year reduction, however, was the more alarming trend. For the first time since sports betting became legal in the state, December’s numbers were lower than those of the previous year, with the betting handle down by almost 10% from December 2023. In actuality, Colorado’s monthly handle fell annually for just the fifth time in 44 months.

Revenue Takes a Hit as Hold Percentage Shrinks

Although consistent betting activity may appear to be a good thing, the sportsbooks’ profits are the true source of concern. As a result of bettors taking advantage of advantageous odds, operators’ hold percentage dropped to just 4.6%.

Sportsbooks made $29.8 million in gross revenue from all bets, but they only made $14.5 million. Just under $1.5 million was the state’s tax revenue from these revenues, a steep 62% decrease from the previous month and a 60% decrease from December 2023.

For physical sportsbooks, the situation was considerably worse. These retail establishments reported a negative hold of -0.9%, which indicates that they paid out $40,000 more in wagers than they took in.

Although the overall handle remained flat, basketball saw a significant surge. Wagers on professional basketball jumped from just over $80 million in November to more than $130 million in December. College basketball added another $32 million in bets.

Football, meanwhile, showed little movement. NFL wagers dipped by $2 million, while college football saw a slight $1.5 million increase. Despite the minor decline, football remained the top sport in Colorado’s betting market.

Parlays, known for their high hold percentage, are typically the most profitable bet type for sportsbooks. However, retail sportsbooks lost money on them in December. They paid out $1.1 million to bettors but only took in $910,000 in parlay wagers.

In contrast, mobile sportsbooks performed much better. They held 6.9% of all parlay bets placed, well above the 4.6% statewide hold. While online sportsbooks technically profited on every sport, their margins were razor-thin. NFL betting, for instance, generated just over $500,000 in gross revenue from nearly $165 million in wagers, resulting in a hold of less than 0.01%.