Tax Revenue From Colorado Sports Betting Set To Double

draftkings sportsbook mobile appColorado sports betting has been around two and a half years already, and it’s been a major success thus far. May 1st, 2020 saw the full rollout of sports betting in the Centennial State, and although bettors had to wait for sporting events to resume at the height of the pandemic, they quickly began placing big bets with some of the different sports operators in the state.

Now that mobile betting has been live in the state for a while, the numbers are back and reflect how much of an achievement it has been.

Colorado Sports Betting Tax Revenue Looking To Double In 2022-2023

The numbers are back from budget analysts in Colorado, and tax revenue from sports wagering is now expected to double within the next year. Throughout the 2022-2023 fiscal year, the Legislative Council Staff and Governor’s Office of State Planning and Budgeting expect total tax revenues of as much as $24 million.

This massively exceeds the number from the 2021-2022 fiscal year (which ended on June 30th, 2022), which saw $12.4 million in tax revenue from Colorado sports gambling. A majority of the expected 2022-2023 revenue (around $22.5 millon) would benefit the Colorado Water Project, which focuses on providing water to combat drought and the state’s increasing population. In 2021-2022, the Colorado Water Project collected about $11.4 million from sports wagering tax revenue.

Fewer Free Bets Means More Revenue

Part of the reason for this massive year-over-year increase? According to the Colorado Sun, at least one chief economist believes it’s due to a new bill that goes into effect on New Year’s Day that puts a limit on free betting credits from different online sportsbooks.

Because these types of bonus bets don’t generate any revenue for sports betting revenue for sports betting operators (meaning no tax revenue), sportsbooks are expected to collect more revenue from real money bets.

Colorado Bettors Have Plenty To Bet On

These massive betting numbers definitely reflect the popularity of not just general sports betting in the state of Colorado, but also the dedicated fanbases in the area.

The Colorado Avalanche have been the most successful Colorado team in recent years, with the squad hoisting the Stanley Cup this season amidst making the postseason in five straight years thanks to head coachJared Bednar and major stars such as Nathan MacKinnon and Cale Makar. The Denver Nuggets have also become a major force in the Western Conference, with two-time MVP Nikola Jokic finally surrounded by a healthy team.

The Denver Broncos have also been the top favorite for many sports fans in Colorado, although the team’s disappointing 2022 campaign has likely seen a downturn in betting handle on the Broncos as they miss the postseason for the seventh straight year. And, while the Colorado Rockies have also been starved for success since a 2007 World Series appearance, the team remains fairly popular with fans and sports bettors.

Add in the fact that Deion Sanders is the new head coach for the Colorado Buffaloes and the next few years could see the state’s betting numbers continue to grow.

Anthony Elio is the Lead Writer for LINEUPS.com, focusing on sports betting, online casino gaming, and horse racing. He covers state betting handles, sportsbook partnerships, operator news, and NHL picks. Outside of his work with LINEUPS, Elio has also written for Daily Fantasy Cafe, Innovation & Tech Today, Krazy Coupon Lady, and Residential Tech Today.

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