Colorado Sports Betting Sets State Record With $326M in January 2021

Colorado Casinos
Colorado sports betting continues to soar high as January 2021 figures reveal a record $326.9M worth of bets were made for the said calendar month.

The number easily tops Colorado sports betting’s previous high of $284.6M which was set in December 2020 or a 14% increase from the previous month. It also translated to a $1.1M tax revenue for Colorado which was an increase of more than 125% from the previous month.

Basketball is Top Sport

Professional Football is the top sport for betting in the United States but that isn’t the case in Colorado. According to the January figures, basketball is the driving force behind Colorado sports betting with the NBA amassing a total of $88M in total bets. College basketball was third on the list, bringing a total handle of $39M.

The NFL ranked second to the NBA with more than $75M of wagers but with Super Bowl LV concluding the league’s latest season, there will be very little pro football bets made between now and Fall. Table tennis is a surprise market in Colorado with a total of $11.8M bets made during the previous month.

Retail Betting is Picking Up

The pandemic has seen punters utilize online sports betting and that has also been the case in the Boulder State with 98% of all January 2021 wagers placed made via the internet. However, the in-person handle saw a slight increase as retail betting produced $7.5M in January bets, which was double the December figures.

The reason behind the uptick in in-person betting is the gradual lifting of restrictions and limitations that were put in place at the onset of the COVID-19 pandemic. With these slowly getting removed, the retail sportsbooks in Black Hawk, Central City, and Cripple Creek have seen an increase in sports bets taken.

Gaining on the Leaders

Sports betting has been up and running in the Boulder State for the past nine months and it has seen a total of more than $1.5 B in sports bets placed. The tremendous growth since inception has seen Colorado sports betting gain on the leaders in the industry.

New Jersey continues to break records month after month and is the top sports betting state in the U.S. The Garden State raked in a massive $958M in January. Nevada is also gaining on New Jersey but is still in second place. Meanwhile, Pennsylvania and Illinois are ranked 3rd and 4th, respectively.

PointsBet Deal Worth at Least $1.625M for CU Buffaloes

Colorado State Seal With a Casino Hotel Background
The University of Colorado stands to receive at least $1.625M as part of its five-year advertising agreement with sports betting company PointsBet.

According to a copy of the contract obtained by sources, PointsBet will make quarterly payments to CU until June 2026. The payments are due every 1st day of July, October, January and April. They escalate every year, beginning with $76,250 in the first year to $86,250 in the fifth year. The five year annual totals are $305,000, $315,000, $325,000, $335,000, and $345,000.

Aside from the quarterly payments, the University of Colorado will receive a referral fee of $30 for every new customer it sends to PointsBet. The more Colorado sports betting client that CU can get, the more money it will receive under its “affiliate” role. These new customers are required to enter a CU promo code which then triggers $30 to the school’s account.

In exchange for the payments, PointsBet will receive advertisement at Sporting events in Colorado, including the school’s football stadium. Every CU football broadcast must include a segment featuring the gambling company and a 10-second live mention during football games. The football stadium will have the PointsBet logo on both videoboards during home games plus a four-minute exposure on CU ribbon boards and end zone LED screens. The agreement is for regular season games with every 30-second exposure during the postseason costing $600 for PointsBet.

First Gambling Partnership

Last month, CU signed the first partnership between an NCAA College and a gambling company. The deal was a major turnabout for the NCAA which has fought very hard against the legalization of sports betting. Although Colorado sports betting was approved last November, the NCAA’s rules ban sports wagering among athletes, coaches, and administrators.

Impending legislation on compensation of athletes could cause more inequality as it relates to gambling. The NCAA may also prohibit athletes from endorsing gambling companies in its legislation governing NIL or name, image, and likeness.

However, there is no prohibition on universities entering into gambling agreements. But the University of Colorado consulted the NCAA and the PAC-12 Conference before it signed the PointsBet deal. Under the deal, PointsBet is prohibited from using a CU athlete’s name or image without approval from the university, and the school is not liable if an athlete files a claim against PointsBet for using their name, image, and likeness (NIL).