Colorado to become multi-billion dollar betting market
Analysts estimate the state could generate up to US$6billion in bets and US$400million in gross operator revenue each year.
US.- Colorado’s sports betting market could become a multi-billion dollar spot, analysts at PlayColorado have said.
According to a report, the state could generate up to US$6billion in bets, US$400million in gross operator revenue and US$40million in tax revenue from sports betting each year.
Despite the shutdown of all sports events in the world until further notice due to the Coronavirus pandemic, Colorado will become the 18th state to have legalised sports wagering when regulations come into force on May 1.
“With a significant base of existing land-based casinos, a regulatory framework that will be attractive to operators, and one of the largest metropolitan markets in the country to draw from, Colorado is well-positioned to capitalise on sports betting,” Dustin Gouker, Chief Analyst for PlayColorado.com, said.
“But assuming the industry does launch on May 1, it will be doing so in unprecedented circumstances with almost no sports to wager on. There are some advantages to a forced soft opening, but it also means that it will be some time before we learn with confidence just how Colorado’s bettors will respond to legal sports betting.”
Deliberately aiming for a later start date with a view to ensuring that its regulatory framework meets stakeholders’ needs and expectations, PlayColorado also suggests its ten per cent tax on net revenue is comparable to some of the most successful sports betting markets.
“Colorado legislators and regulators have made many smart, measured decisions based on input from casinos, operators and bettors, and that has led to the adoption of an excellent collection of rules and restrictions,” Gouker said.
