What Happens When A State Loses Money From Sports Betting?

• Sportsbook operators in Colorado saw over $2 million in losses after paying sportsbook bets on the Avalanche in the month of June.
• The NFL season kicks off in a few weeks and September of 2021 saw over $123 million bet in Colorado and accounted for over 30% of the overall betting activity.

DENVER – Over the 26 months that Colorado has offered legal sports betting, the state has reported two months of gross revenue loss in 2022 and three times in total.

The Month of June saw a total handle of $300 million in Colorado, and gross revenue of 6.8 million was reported. The total hold was the smallest it has been since 2020, at 2.2%, showing the success of the placed wagers.

Baseball and Basketball lea the total betting by percentage, but betting on the NHL offered some high payouts in June.

Colorado Avalanche Making Sportsbooks Payout

There was a total handle of over $200 million on the NHL from October to June in Colorado.

The Avalanche won seven of their nine games in June, as they cruised through the 2022 NHL playoffs. They recorded two sweeps and had a total playoff record of 16-4. Legal sports betting in Colorado at this time presented immense value for Avs fans, as the team was the betting favorite in 19 of their 20 games played.

The Month of June saw a $29 million bet on the NHL alone and the Avs only lost two games, and they were only the underdog in one of those games. Because of this result, sportsbook operators had to pay out over $31 million from online sports wagers.

The Avs postseason success cost Colorado sportsbooks over $2 million in June alone, even though it only accounted for 9.4% of the total sports betting activity. Even through all this winning, Colorado reported their smallest total handle in June since recording $211 million in August of 2021.

Could The Broncos Cause The Same Damage?

The NFL season has guided Colorado’s highest months, with September of 2021 to February of 2022 not recording a handle smaller than $408 million.

Sportsbook operators have to prepare for the start of the 2022-2023 NFL season, with the Denver Broncos Russel Wilson and +1600 Super Bowl 576 odds.

Online sports betting in Colorado recorded over $123 million in wagers and paid out $119 million on those wagers. Football accounted for over 30.8% of the bets placed. If sportsbooks want to avoid more net losses during the NFL season, the Broncos cannot be a powerhouse team.

Colorado sportsbooks could also continue to decrease the amount of promotional play offered, after seeing $8.7 million in June. This was the first time the total promotional credits were below $10 million since August 2021.

News tags: Colorado Avalanche | Denver Broncos | NFL | NHL