The Colorado Department of Revenue posted an adjusted gross revenue loss of more than $1.1 million for sports betting in the month of February, the second time that has happened in the state’s 22 months of legal wagering.
The combination of a sharp dip in handle, promotional credits fueled by Super Bowl wagering, and a strong performance by the public brought about the net loss. Football contributed to the other monthly adjusted revenue loss back in September 2020, when sportsbooks in the Boulder State collectively reported nearly $3.4 million in losses.
Gross revenue this February totaled $19.6 million, which was a 43.4% decline from January’s figure of $34.6 million and reflected a hold of 4.5% — nearly 1.6 percentage points lower than January. Promotional credits and other deductions topped $20 million for the second consecutive month, and the nearly $43.7 million through the first two months of 2022 is equal to nearly 30% of the $146.7 million reported in promotional credits and deductions for all of 2021.
The state still did receive some tax revenue for February, with operators providing close to $315,000. Despite adjusted revenue running 11.2% lower at close to $10.6 million in the first two months of 2022 compared to 2021, the state has collected $234,712 more in taxes thus far.
The handle of $440.5 million was a 23.2% decline from January’s record total of $573.7 million, but it was also a 65.3% improvement year-over-year. The February handle was also enough to make Colorado the sixth state to surpass $6 billion in all-time handle in the post-PASPA era along with New Jersey, Nevada, Pennsylvania, Illinois, and Indiana.
Super Bowl handle up, but public comes out ahead
2022 YTD (vs 2021)
Handle: $1,014,228,634 (⬆️70.9%)
GGR: $54,244,709 (⬆️61.5%)
GGR Win Rate: 5.35% (-0.31 pts)
AGR: $10,573,591 (⬇️11.2%)
AGR Win Rate: 1.04% (-0.97)
Taxes: $1,762,683 (+234,712)
— Chris Altruda (@AlTruda73) March 31, 2022
The Colorado Department of Revenue noted an increase in Super Bowl handle to just over $41 million, which was a 31% boost from the 2021 total of $31.2 million. The betting public posted a win in NFL wagering for the second straight February, coming out $2 million ahead on $31.4 million wagered, though that was much less than the nearly $3.7 million in operator loss from just $24.2 million wagered in February 2021.
The drop in football handle accounted for most of the overall handle drop, as some sports categories showed month-over-month improvement. NBA wagering became the top attraction, generating $155.6 million worth of bets while operators kept more than $6.6 million as revenue. College basketball wagering ticked higher to nearly $68.2 million, with operator revenue there increasing more than three-fold to just shy of $2 million, with the win rate climbing to 2.9% from 0.9% in January.
Revenue from pro hockey also more than doubled to more than $1.8 million, with handle nearly flat at just over $24 million. Soccer handle, meanwhile, reached an all-time high of $18.9 million in February. Table tennis continues to have a loyal following, generating close to $7.3 million handle and more than $600,000 in revenue.
By parlay standards, bettors more than held their own, limiting the house to an 8.5% win rate on nearly $78.5 million wagered. The nearly $6.7 million in operator revenue, however, still represented the largest single category source of winnings for the house. Colorado bettors also surpassed $1 billion in all-time parlay wagering with February’s report. Operators have a 14.5% hold and more than $150 million in revenue from such bets since launch.