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Colorado Sportsbooks Impressive Again With $128.6 Million in August

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Colorado Sportsbooks Impressive Again With $128.6 Million in August

 

The Colorado sports betting market’s first real test was met with overwhelming success, using a busy slate of major U.S. sports in August to more than double the state’s handle from July. In doing so, Colorado has continued its rapid ascent for a market that launched in May amid a worldwide pandemic, said PlayColorado analysts.

“Considering the obstacles Colorado’s market has had to face since it launched in May, the results so far have surpassed the expectations of all but the most optimistic,” said Dustin Gouker, lead analyst for the PlayColorado.com. “Colorado is already in a small group of major U.S. sports betting markets, and it has reached that level long before the market has matured.”

With a busy schedule of baseball, NBA, and NHL games throughout August, online and retail sportsbooks combined to generate $128.6 million in wagers, up 117% from $59.2 million in July, according to official data released Wednesday. The wagers over the 31 days of August netted $1.9 million in betting proceeds, down 22% from $2.4 million in July. The drop in net proceeds came in spite of a rise in gross revenue to $7.5 million from $5.2 million, the result of increased marketing.

August’s wagers produced $189,462 in state taxes and topped the $122.9 million in bets that sportsbooks generated over the industry’s first three months combined.

Colorado sports fans had plenty of motivation in August. Fueled by the Denver Nuggets, basketball was the main driver in August, attracting $38 million in bets. And baseball generated another $22.8 million in bets. With the Colorado Avalanche enjoying a playoff run of their own through August, hockey drew another $13.6 million in wagers.

With the Nuggets in the Western Conference Finals and the Denver Broncos season under way, Colorado’s monthly record will likely be short-lived.

“As impressive as August was, September will almost certainly be even better with the Nuggets and Broncos in play,” said Jessica Welman, analyst for PlayColorado.com. “With table tennis as the state’s top draw in the first few months, it was impossible to get a reliable read on Colorado’s market. We now know it’s a market that responds well to its home teams. After September, though, we will find out how much interest in sports betting is driven locally as the Nuggets season wanes and if the Broncos continue to struggle.”

Perhaps most surprising is Colorado’s push toward the nation’s fourth largest market, Indiana, which attracted $169 million in bets in August. The Hoosier State has a more mature market, a larger population than Colorado, and is boosted by relatively large markets — including Chicago, Cincinnati, and Louisville — just across its borders.

The Centennial State has its own advantages, though, including its ability to entice sportsbook operators with an attractive regulatory framework and heavy interest in Denver-area professional sports teams. Just recently, TheScore Bet and the first U.S. sportsbook from European bookmaker SportsBetting.com have launched in Colorado, with even more to follow.

“Colorado started as a relatively open market for sportsbook operators and a well-conceived regulatory framework have made the state especially appealing,” Gouker said. “With multiple bookmakers who have never operated in the U.S. before, Colorado is beginning to look like no other market in the U.S.”


Press Releases

YouGov unveils US bettor research report, which highlights that 43% of sports bettors use three or more sportsbook apps

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YouGov has released its US bettor research report, which provides detailed insights into the preferences of US sports bettors.

Utilizing YouGov Custom Research, the report uncovers the impact that ESPN BET has had on the market, which in-app sportsbook features drive bettor engagement, and much more.

The report finds that:

  • 71% of 25-44 year-old bettors find the ability to live stream sporting events that they bet on in their sportsbook app important (vs 65% all ages)
  • bet365 is the most used sportsbook by 21-34 year-olds and DraftKings is used most by all other ages
  • 67% of 21-24 year-old current and prospective bettors are likely to create a sportsbook account with a sportsbook that is associated with a streaming service (vs 57% of all ages)
  • 51% of sports bettors are using ESPN BET more than they used to (vs 15% using it less)

“The US sports betting industry is a very competitive marketplace and maintaining loyalty from customers has proven to be difficult for sportsbooks, especially when new sportsbooks enter the market,” said Jeff Morris, VP at YouGov.

“Our research shows that the sportsbooks that incorporate key in-app features like live streaming sporting events can provide an advantage for driving interaction from current sports bettors and attracting prospective sports bettors.”

The report highlights key factors that would influence prospective sports bettors to create their first sportsbook account and provides an in-depth look at how sports bettor preferences vary across age groups.

 

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Compliance Updates

Arkansas Casino Seeks iGaming Approval

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An Arkansas casino is seeking approval to operate an iGaming app, allowing people within the state to go online to play casino games such as slots, blackjack, craps and more.

On March 13, Carlton Saffa, Chief Market Officer for the Saracen Casino Resort in Pine Bluff, wrote to Arkansas Racing Commission Chairman Alex Lieblong asking for a change in the rules to allow Internet casino gambling, which is often referred to as iGaming or iCasino platforms.

On Monday, Saffa told Gambling.com he hopes to appear before the Arkansas Racing Commission on May 6 seeking approval to offer iGaming. The Arkansas Racing Commission regulates all gambling matters in the state including horse racing and casino games.

iGaming Doesn’t Hurt Bricks-And-Mortar Casinos: Saffa

Nationwide, only a half dozen states from Michigan to Connecticut offer Internet casino gambling. Arkansas would be the first in its region with iGaming, permitting users who want to log onto a computer or download an app to play traditional casino games for money. Other states in the region already offer sports betting.

In his March 13 letter to state regulators, Saffa said estimates indicate Internet casino gambling from the Saracen Casino Resort alone would generate an additional $12 million in taxes annually for the state. Internet casino gambling, or iGaming, generally raises more tax revenue than sports betting in states that have both.

However, in some states without iGaming, casino operators have fought legalization, contending customers won’t visit a bricks-and-mortar casinos and spend money at restaurants and on other amenities including entertainment and lodging if they can log onto cellphones or computers and gamble from anywhere. In his letter to state regulators, Saffa pointed to research showing iGaming doesn’t cannibalize bricks-and-mortar casinos but instead gives them ‘a lift’.

State Rule Change Required

Arkansas already allows online poker, though that has not been made available to consumers, Saffa said. He said the ability to allow iGaming would require the Arkansas Racing Commission to amend a rule to include Internet casino games in addition to the currently legal online card games such as poker.

“A solution exists by amending ARC Rule 5, which already authorizes online poker, to include other types of table games and slots,” Saffa told Gambling.com on Monday. “Doing so would provide significant tax revenues to government and, just as important, ensure that operators be held accountable by the government. Given that we have seen online operators in the fantasy sports space ignore cease and desist demands from the state, merely attempting to police the matter is not a workable solution.”

Saffa recently made a similar argument on the topic of unregulated gambling, telling Gambling.com on The Edge he opposes a ban on college player props bets, saying, “Sunlight is the best disinfectant.”

“People in Arkansas are already gambling in online casinos and those companies are not regulated or taxed by the Arkansas Racing Commission,” Saffa said Monday. “Those companies are not held to the standards the people of Arkansas set forth for operators to include that a customer must be 21.”

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Latest News

Internet Vikings and Casinogate Partner in Latin America

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Internet Vikings and Casinogate Partner in Latin America

 

Innovative game studios aggregator Casinogate has chosen to partner with Internet Vikings, a leading supplier of cloud hosting solutions for sports betting and iGaming. Internet Vikings provides its private VMware cloud hosting services to Casinogate, supporting their move into the Latin American market.

At the core of its business model, Internet Vikings assist companies expanding into new territories to start small and scale their infrastructure as their business grows. This perfectly aligns with Casinogate’s vision for a measured and successful launch in Latin America.

“Our tailored approach enables clients to invest in what they need now while providing the assurance of scalability as their operations widen into Latin America or elsewhere. This partnership allows Casinogate to focus on what they do best – creating exceptional games – while we handle the critical infrastructure,” shares Rickard Vikström, CEO and Founder of Internet Vikings.

One of Internet Vikings’ most distinguishing features is its commitment to personalized service. André Castro, Co-Founder and CEO of Casinogate, adds: “Their key account manager worked closely with us to understand our specific needs for the Latin American market. They developed a solution that scales perfectly with our anticipated goals, ensuring a smooth transition.”

​From a technical standpoint, Internet Vikings leverages VMware, renowned for its user-friendly interface and reliability. This has translated into enhanced performance for Casinogate, with minimal latency experienced on their platform.

“Internet Vikings’ expertise in hosting and focus on strong partnerships make them an essential asset. We’re assured in delivering premium gaming experiences to our Latin American audience. Their professionalism, particularly during the initial VMware setup, instilled great confidence in us,” André Castro concludes.

The partnership between Casinogate and Internet Vikings exemplifies how industry leaders can leverage innovation and collaboration to achieve mutual success. By combining Casinogate’s thrill-seeking games with Internet Vikings’ cloud solutions, both companies are laying the foundation for a promising future in Latin American online gaming.

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