- January brought a record-setting return for Colorado’s sports betting taxes, with the state collecting more in a single month than at any point since wagering became legal.
- Betting activity was driven largely by parlays and other combination-style wagers, as the total amount staked statewide finished a little over $630 million.
- An improved hold rate kept sportsbook returns strong despite a minor dip in year-over-year wagering volume.
DENVER — January brought a notable first for Colorado’s regulated sports betting market, with the state collecting more than $5 million in tax revenue from wagering activity during a single month. The total marks the first time collections have crossed that threshold since Colorado authorized sports betting in 2020.
On Tuesday, the Colorado Division of Gaming released its monthly data, which showed $5,022,182 in tax revenue for January. The figure is 13% more than what the state received in January of last year and surpasses the previous high of over $4.76 million from October 2025.
The month’s total wagers were a little over $630 million, which was less than the $657 million handle Colorado had in January 2025. Sportsbooks were nonetheless profitable in spite of the decline in overall betting volume.
The percentage of each dollar gambled that the sportsbooks retained, known as the hold rate, increased to 9.64% from 9.27% the previous year. Even though less total amounts were wagered, tax income reached a new high due in large part to this efficiency.
What Bettors Were Wagering On
In terms of popular betting categories, football and basketball were at the top. Pro football pulled in almost $120 million, mostly because of the NFL playoff action that took place in January, while NBA wagers exceeded $164 million.
At almost $165 million, parlays and combination bets were the largest wagering category, demonstrating the growing popularity of multi-leg tickets among Colorado gamblers in recent years.
The vast majority of bets at Colorado sportsbooks were handled online. Less than $4 million of the $630 million monthly total came from retail sportsbooks at actual casino sites; almost 99% of all handles came from mobile and online betting.
The data consistently support the state’s open online licensing regime, which has made mobile the most popular format.
Since its inception in 2020, legal sports betting in Colorado has also contributed significantly to state water conservation initiatives. The entire amount of taxes collected has exceeded $100 million, and officials predict that amount may reach $120 million by the end of the current fiscal year.
Colorado has already earned around $28.6 million in sports betting tax revenue through the first seven months of the fiscal year.
