The numbers
Colorado sportsbooks processed $630.2 million in handle during January 2026; the third-highest monthly total in state history; and generated $5.02 million in tax revenue for the state. The tax figure is a Colorado record, surpassing the previous high set in January 2025.
The state's 2025 calendar-year handle finished at $6.52 billion (+5.4% year over year) on $442.8 million in gross gaming revenue (+36.2% YoY). The revenue growth rate is more than 6× the handle growth, reflecting tighter hold margins as operators reduce promotional spending ahead of the HB 25-1311 phase-out.
Why January set a record
Three factors converged. First, the NFL playoffs and Super Bowl drove the typical January handle spike. Second, the Broncos returning to the AFC postseason for the first time in nearly a decade pushed Colorado-specific NFL volume to all-time highs. Third, ongoing HB 25-1311 promo-deduction limits meant a higher percentage of operator revenue was taxable; converting the same handle into more state revenue.
Mobile wagering accounted for 99.4% of January handle. Retail; Black Hawk, Central City and Cripple Creek combined; produced just $3.8 million in handle. The mobile/retail split has stayed remarkably consistent since 2022.
Mobile dominance and the operator picture
DraftKings and FanDuel together account for roughly 65-70% of Colorado handle by most market-share estimates, with BetMGM, Caesars and bet365 dividing most of the remainder. The next tier; Fanatics, BetRivers, theScore Bet, Hard Rock Bet; fights for single-digit share each.
Circa Sports operates at lower volume but higher average ticket size; the sharp segment is small but vocal. Sporttrade's exchange model continues to grow steadily without taking meaningful share from traditional operators.
What's next
The next major variable is the HB 25-1311 phase-out (see our regulation coverage). When operators can no longer deduct free-bet costs from taxable revenue; fully effective July 1, 2026; Colorado tax projections rise to $120M for fiscal 2026-27, roughly double the current run rate.
For bettors, the most likely outcome is a tightening of welcome offers and reload promotions as operators rebalance acquisition spend against post-deduction tax math. The current generous welcome environment may not survive the transition.