The Colorado Department of Revenue reported on Monday gross operator sports wagering revenue of minus-$3.8 million on pro football for the month of February, suggesting a probable rout in favor of the betting public on Super Bowl LVII.
It was the third time in as many years with Super Bowl wagering available in the Centennial State that the public took the house to the cleaners in pro football betting in a February, though the Department of Revenue did not provide a specific breakout of numbers related to the Kansas City Chiefs’ win over the Philadelphia Eagles. (There were also XFL games in February and NFL futures bets paid out.) The February 2023 performance was the best yet for the public in terms of money won, edging out the $3.7 million the house paid out on top of accepted wagers in 2021.
The minus-13.8% hold on football this February, however, trailed the minus-15.2% win rate in February 2021. Overall, sportsbooks have paid out $9.5 million above the $83.1 million handle for pro football in the month of February from 2021-23, translating to a hold of minus-11.4%.
The $27.6 million handle for all pro football wagering this February was down 12.1% versus last year.
Overall sports betting handle in Colorado for the month totaled $425.1 million, down 22.3% from January and a 3.5% year-over-year decline from the previous February. Operator gross revenue was $22.6 million, good for a 5.3% hold, while net sports betting proceeds were just shy of $12 million. That was still a large improvement from February 2022, when the combined net proceeds were minus-$1.1 million.
The state was able to collect $1.3 million in tax revenue for February, and the $3.8 million in tax revenue through the first two months of 2023 is $2.1 million ahead of last year’s pace.
Bettors also held their own on hoops
Running Top 10 #SportsBetting handle for February by state:
1 New York $1.47B
2 New Jersey $847.4M
3 Nevada $659.4M
4 Ohio $639.8M
5 Pennsylvania $599.5M
6 Virginia $433.8M
7 COLORADO $425.1M <-NEW
8 Michigan $357.2M
9 Indiana $356.2M
10 Maryland $339.4M— Chris Altruda (@AlTruda73) April 3, 2023
Though operators generated $7.4 million in gross revenue from pro and college basketball combined, it took a lot of effort to accumulate that money. Total basketball handle totaled $223.7 million, with $155.6 million of that coming from pro basketball wagering.
The win rate on pro basketball, however, was just 3.9%, as operators took barely more than $6 million. College hoops were even tougher for the house, with sportsbooks limited to a 2% win rate on $68.1 million in accepted wagers to collect $1.4 million.
In between the two basketball disciplines, tennis finished as the No. 2 revenue generator among sports listed with $2.3 million. The hold there was a more robust 8.9% on $25.4 million wagered. Pro hockey wagering revenue topped $1.2 million and soccer was $1.1 million as both sports had holds under 5.8%.
Parlay revenue accounted for more than half the overall gross revenue, with operators collecting $10.9 million thank to a hold of 14.8%. Despite a 5.9% year-over-year drop in parlay handle to $73.9 million, revenue surged 63.1% as the hold was more than six full percentage points higher.
The catch-all “other” category was the only other one to hit seven figures for revenue, narrowly crossing $1 million. The house nearly claimed $1 million in gross revenue from golf, finishing less than $45,000 short of seven figures while posting a strong 17.1% win rate. Boxing and MMA revenue combined topped $1 million from $5.1 million handle.
Statewide retail net sports betting proceeds were barely $41,000 as brick-and-mortar books in Cripple Creek and Central City finished some $7,000 in the red combined.
Revenue up, handle down to start 2023
In terms of total early year-over-year numbers, the $972.3 million handle is 4.1% off from the first two months of 2022. The $58.1 million in gross revenue, however, is 7.1% higher, thanks to a hold just under 6% that is nearly two-thirds of a percentage point higher.
In February, Colorado became the seventh state in the post-PASPA era to surpass $11 billion in all-time handle and moved within $98 million of Indiana for the No. 6 spot.
