Colorado Tax On Sports Betting Breaks $3M For First Time In March
Colorado sportsbooks achieved a remarkable feat in March as they generated a historic sum of $345.4 million in revenue from online sports betting. This remarkable feat also marked the first time since the legalization of sports betting in May 2020 that quarterly profits exceeded $3 million.
The total expenses for sports betting in March amounted to $3,103,024. This figure is a result of the 10% tax imposed on the earnings from online sports betting. The tax is calculated based on the total revenue, including charges, free bets, and a 0.25% federal excise tax.
March playing was significantly lower than March 2024.
In March, the Colorado sports betting industry saw a expected increase compared to February. Bettors placed bets worth $494.4 million, which marked a 16.3% rise from the $425.1 million wagered in February. Despite the growth, the total amount fell just short of $500 million, resulting in a 2.2% decline compared to March 2024’s $505.6 million.
Sportsbooks generated a substantial $448.5 million in payouts, boasting an impressive 9.3% hold, thereby compensating for any unfulfilled bets. The total revenue from this game in the state witnessed a significant 103% surge, jumping from $26.6 million in February to $45.9 million, securing the second-highest figure in the state’s history.
In 2024, September witnessed a higher Gross Gaming Revenue (GGR) of 51.3 million, second only to March’s performance. However, despite this achievement, September’s net sports betting earnings (NSBP) and tax contributions were lower compared to March’s figures. Over a span of only six months, NSBPs reached a total of over $20 million, resulting in tax payments exceeding $2 million.
| Month | Handle | GGR | Keep %. | NBSP | Tax |
|---|---|---|---|---|---|
| 2024 March | 494.4 million money | $ 45.9 billion. | 9.3% | 35.4 million. | 3.1 million dollars |
| September 2024 | 450.2 million money | $ 51.3 million. | 11.4% | $ 31.7 million. | $ 2.99 million. |
| January 2024 | $547,189,025 | $35,482,562 | 6.5% | $ 22.5 million. | 2.586 million money |
| 2024 December | $518,088,768 | $40,909,238 | 7.9% | $ 28 billion | 2.584 million dollars |
| November 2024 | $552,603,013 | $37,569,022 | 6.8% | 24. 4 million | $ 2.58 billion |
| October 2024 | $ 526.6 million | $ 36. 5 million | 6.9% | $ 21.1 million. | $ 2. 3 million |
In the current fiscal year, the NSBP has experienced a significant increase of 271.5 percent, rising from $13 million in February 2024 to $209 million. This represents a year-on-year growth of 273.2 percent. The total taxes collected so far this fiscal year amount to $20.3 million, reflecting a YoY increase of 225.2 percent. With only three months remaining until the end of the fiscal year, these figures indicate a positive trend.
Sportsbooks & , biggest W, bets reduced
In terms of betting amounts, professional basketball topped the charts with a handle percentage of $193 million, while NCAA hockey followed closely behind with $934.3 million. These figures represent individual percentages of 4.6% and 7%, respectively.
Colorado designates a separate category specifically for gambling activities related to parlays, rather than grouping them together with other activities.
Parlays placed bets amounting to $90 million, yet their returns only amounted to $65 million, resulting in an impressive hold of 16.4%. Despite handling less than half of the wagers compared to professional hoops, they still managed to make a profit of $14.8 million, surpassing the earnings from professional hoops which stood at $13.5 million.
Apart from tennis ($25.1 million) and ice hockey ($23.3 million), only sport ($19.4 million) had handles exceeding $20 million in the mentioned three categories.
entering the useless space
Historically, March marks the conclusion of the peak season for gambling. Following football, the NBA and NHL finals will now inherit this tradition, alongside the challenges encountered in school.
During the summer, sports including field hockey may come to a close. Only baseball, golf, and other sports will remain until the football season starts in September, resulting in an increase in the numbers of fans and participants.
There is a possibility of a 30 to 50 percent decrease in control over the next five weeks compared to the previous record highs. However, there is no cause for concern as sports betting is naturally an annual phenomenon.
Over the past three years, Colorado sports bettors have consistently outperformed the average betting population, positioning themselves among the top ten markets in the United States. Additionally, trust in the Broncos Country has been shaken with the appointment of Sean Payton, who brings unfavorable talent to the team.
Should Payton exceed expectations, both the ship and the Broncos might secure a spot in the playoffs this autumn, thereby establishing unprecedented records in terms of control, profitability, and tax endeavors.
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