Licensed sportsbooks in Colorado have shown remarkable resilience in July, marking a significant turnaround from a challenging end to the 2022-23 fiscal year. The state’s legal sports betting industry reported its strongest July performance to date, with optimistic signs pointing to the potential of the current fiscal year becoming the first to approach half a billion dollars in revenue.
July Milestones
In July, Colorado’s regulated sportsbooks achieved impressive results in line with industry standards. In historical context, however, this July stood out as the best month ever recorded for sports betting in the state.
Key July 2023 statistics include:
- Sportsbooks won approximately 9.1% of the total money wagered statewide through both in-person and online channels.
- Compared to July 2022, the total amount wagered increased by 8.1%.
- Tax revenue for the state saw a substantial rise of 38.6%.
July 2023 has outperformed previous records in Colorado:
- It was 79.2% higher than July 2020.
- It surpassed July 2021 by 37.3%.
- It exceeded July 2022 by 16.7%.
Promising Start to the Fiscal Year
The strong performance in July is an encouraging start to the new fiscal year, following a lackluster end to the previous one. In the 2022-23 fiscal year, sportsbooks secured just under $393 million in winnings from bettors, comfortably surpassing the previous two fiscal years.
Potential for a Historic Year
Assuming the 16.7% year-over-year growth rate observed in July remains consistent for all 12 months of the current fiscal year, Colorado’s sportsbooks could exceed $458 million in winnings. However, it’s important to note that such assumptions may be unreliable, and the growth rate could vary significantly in the coming months.
Considering that win grew by 28% from the FY21-22 to FY22-23, replicating this margin could propel sportsbook winnings for the current fiscal year to over $500 million. Nonetheless, it’s prudent to acknowledge that year-to-year growth rates have gradually declined.
Realistically, sportsbook winnings are expected to fall somewhere between the 16.7% and 28% growth range, possibly surpassing $400 million for the first time in Colorado. This achievement would set the stage for a historic fiscal year, with the possibility of approaching half a billion dollars in total revenue for FY24-25.