Colorado and Virginia are two states with legal sports betting, and both markets got off to pretty fast starts. There were some big months in 2022 for each state in the industry, but that has started to shift in a big way of late.
There have now been 23 different states to report on June sports betting totals, and most states are seeing less action and less total revenue. The national average for the month of June showed a 23% drop in total sports betting handle from May, and revenue dipped by more than 40%.
Both of these trends are a bit concerning to states with legal sports betting, but a slower sports calendar always produces lower numbers during the summer months. Virginia was actually slightly better than the national average, but that was not the case in the state of Colorado.
Avalanche Sink Colorado Sportsbooks
The Colorado Avalanche won the 2022 Stanley Cup, a title that wasn’t a big surprise as they were betting favorites to begin the season. This title run was great for sports fans in the state of Colorado, and bettors were able to cash in on the run as well.
In the June sports betting report, Colorado sportsbooks lost money when looking at the adjusted net revenue for the month. Bettors that placed a future wager on the Avalanche were able to cash in on that bet, and it sunk the sportsbooks.
The total loss of revenue was right under $2 million for the month of June, and it was the second time that Colorado sportsbooks lost money in 2022. The gross total revenue was over $6.8 million, but operators are allowed to take out promotional offerings when reporting the revenue.
The total sports betting handle total in Colorado in June was $313.2 million, and the hold rate was just 2%. While June was a slower month compared to May, Colorado continues to post numbers that are a huge jump over where this state was in 2021.
There are more than 20 online sports betting options in Colorado and that is where nearly all of the wagers are placed each month. Retail sports betting is limited to three remote towns in the Rocky Mountains that don’t attract many guests.
Promotions Slowing Down in Virginia
The total sports betting handle in Virginia for the month of June was $295.2 million, which was a drop of 16% from the report in May. Revenue also fell by nearly 40%, but that went together with the sharp drop in action.
Virginia sportsbooks are still posting positive results when looking at year-over-year comparisons in both handle and revenue. Sports betting handle through the first half of 2022 increased by more than 25% from 2021 and the revenue is up nearly 20%.
There is one rule change set to impact sportsbooks in Virginia, especially when it comes to offering promotions. The state is now going to limit the amount of deductions that can be taken out when reporting sports betting revenue.
The first seven online sportsbooks in the state were affected by this rule change beginning on July 1. Barstool Sportsbook can still operate under the first set of rules for a bit longer, but it will join the list soon as well.
The sports betting tax revenue in Virginia has been impacted by the massive deductions that have come from sportsbook promotions. Since legal sports betting launched in January 2021, there have been nearly $200 million in deductions