Colorado’s Annual Sports Betting Revenue Set to Take A Beating

Colorado’s Annual Sports Betting Revenue Set to Take A Beating

Colorado became the 18th state to launch sports betting market in the US. However, the market was launched in the middle of the COVID-19 pandemic when land-based casinos were shut down and most major sporting events were canceled.

Revenue could take a fall

As the unprecedented crisis hit the industry, Colorado state officials are convinced that the lack of betting activity could cost the state this year. The state’s voters narrowly passed Proposition DD last November, allowing it to start accepting applications for sports betting. The state hoped to use the revenue to fill up the $100 million annual gap in its water budget. As the activity remains low, the state will barely be able to achieve its goals this year.

Colorado’s Annual Sports Betting Revenue Set to Take A Beating

Though sports betting revenue would not have fulfilled the $100 million gap, it would have provided an estimated $9.6 million per year to the state which could have been helpful. However, now gaming officials estimate that the annual revenue will be somewhere around $1.5 million. With this small figure in estimated revenue, the state could end up losing more than it aimed to earn. This is because the state passed $1.8 million in expenses to launch the sports betting market.

A bad start

A few critics questioned the state’s plan to launch sports betting on May 1, where there were no events to bet on. The launch was called troublesome from the beginning as the NCAA Men’s basketball event was canceled in March and April suffered through a complete lockdown. There was no certainty that the lockdown will be lifted in early May and no sporting leagues had decided to consider restarting yet.

The only big event lined up for sportsbooks right now is UFC 249 which will feature just one fight. NASCAR is also planning to organize a race in mid-May followed by a full season. Had everything gone, the enthusiasm around the state’s two teams- Denver Nuggets of the NBA and Colorado Avalanche of the NHL, would be making an impact in their respective leagues, helping create the perfect launchpad for the market.

Sportsbooks all across the US have been hit hard since March as their profits have declined. Some of them have either started moving their clients to their online casino products while others are letting users bet on obscure sporting events like Belarussian football.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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