Arapahoe Park racetrack in Aurora, Colorado recently commissioned a study by the Innovation Group showing sports gambling could generate $361 million in revenue by 2023. The report assume bets would be allowed onsite, casino sports books and off-track betting locations, as well as online and mobile.
The study notes if legislators limit sports betting to casinos, total revenues would be notably lower. In-person bets at the track and off-track locations would make up more than one-third of all sports gaming revenues, or $131.4 million by 2023.
Officials at Colorado’s casinos in Blackhawk, Cripple Creek and Central City questioned the study, noting the three historic mining towns are about an hour’s drive from a metro area. They’re concerned about the expansion of gaming in metro Denver. They also disputed the $360 million annual revenue estimate. David Farahi, general manager at the Monarch Casino in Black Hawk, said, “Arapahoe Park’s study seems wildly aggressive.” He noted total sports betting in Nevada for 2017, the last year the state had a national monopoly on sports betting, brought in just $250 million in revenue.
State House Majority Leader Alec Garnett has held several meetings with stakeholders in anticipation of drafting sports betting legislation that’s acceptable to the track and casinos. “But that could change tomorrow. It’s like weather in Colorado, it can change at any moment,” he said. Garnett is said to be considering a tiered licensing system, with Arapahoe Park offering limited in-person wagers, not a full Vegas-style sports book. “We don’t want it too big that we can’t regulate it properly but we don’t want it too small that the black market continues to exist,” Garnett said.
Farahi said the proposals change daily. “We have not seen draft legislation. It’s hard to put odds on how seriously the legislature will take ideas that get floated,” he said.
