The new sports betting market in Colorado is setting new records. The tax continues to underwhelm and now the gambling regulators are offering insights into the condition.
The Colorado Department of Revenue Division of Gaming announced that the licensed sportsbooks handled $210.7mn in wagers in October. This is a 1.5% increase from September.
However, the betting revenue for October is $17.4mn, more than $4.2mn in September. Out of which, $16.7mn was generated online, but the generous bonus totaled the online net to less than $9mn.
The state received a share of revenue in October as $824,000 which is a huge improvement from $70K collected in September.
However, the state has now released why the state’s share is less even though revenue is in millions.
As per the regulator,
“in some cases, the tax credits exceeded the taxes owed, allowing operators to carryover a negative tax amount to the following month. These carryovers skew the numbers to show a lower tax rate.”
The casinos might not be impacted much by it. The casinos have wagered just about $4.3mn in October. The revenue was $678K in October. In Black Hawk City, there will be no table game bets at $100K. Black Hawk, Central City, and Cripple Creek, originally capped max bets at $5, and then it was raised at $100.
The ballot initiative was launched and Black Hawk city voted to lift the limits and add new products, baccarat and table game side.
The rules are expected to effect from May 1, 2021.