Online and retail sportsbooks climbed to a new high in Colorado during October, with more incoming competition set to challenge the market leading status achieved by FanDuel and DraftKings.
Capitalising on the sporting schedule, the Centennial State’s sportsbooks welcomed $210.7m in bets in October, according to data released by the Colorado Department of Revenue’s Division of Gaming.
The month’s handle was up two per cent from $207.7m in September, generating a record $17.4m in gross gaming revenue, a significant 317.7 per cent increase from the previous months $4.2m.
“October’s data shows that Colorado’s market is able to thrive even as the sports schedule normalizes and able to overcome a local team struggling, such as the Denver Broncos,” stated Jessica Welman, analyst for PlayColorado.
“Another sign that the market is marching toward maturity is that DraftKings and FanDuel have firmed up their market leads in the state, something we’ve seen in every legal market that has launched since 2018 while attracting a large number of competitors to push innovation in the market.”
Eilers and Krejcik estimates, obtained by PlayColorado show that DraftKings and FanDuel, the nation’s two largest sportsbook operators which both launched in Colorado on May 1, have generated 84 per cent of Colorado’s gross gaming revenue since the market launched in May.
Despite no new operator launches taking place in October, PointsBet has documented its market entry in recent weeks, with a Barstool-branded Penn National Gaming entry anticipated following a retail debut at Ameristar Casino in Black Hawk.
“DraftKings appears to be winning the battle so far, but FanDuel is a force as the two jockey for the market lead,” said Ian St Clair, analyst for PlayColorado.com.
“That leaves a lot of smaller operators fighting for the remainder of market share. Colorado’s market is still sorting itself out, though, and that could bring challengers to the dominance of the big two.”
Colorado’s October handle fell behind Indiana, which attracted $230.9m, to place sixth place among the nation’s largest markets, behind New Jersey, Nevada, Pennsylvania, and the rapidly expanding Illinois.
“Colorado remains a major player in the US market, with perhaps the most competitive market for operators,” Welman added.
