The battle for capturing the sports betting market in the state of Colorado is on.
In a flurry of recent developments, BetMGM announced launching a betting lounge in Broncos Stadium, while DraftKings opened a brick-and-mortar sportsbook and Circa Sports launched their mobile app in the state.
When we covered legal sports betting going live in Colorado in May 2020, we talked about the consumer-friendly mobile betting market that would surely attract all of the big bookmakers to do business in the state:
”Unlike most other states, Colorado has allowed online registrations, deposits and betting right from the start. No in-person visits for signups are required. This makes it easy for consumers to start placing wagers, which in turn bodes well for the bookmakers and for generating tax revenues for the state.
The rules in place state that sportsbook operators have to partner with a casino in the state in order to enter the market. There are 33 casinos in Colorado, so there is plenty of room for partnerships, and all of the big players will likely try to enter the market fast.”
That certainly seems to be the case a couple of months after the legal market went live. Let’s look at the specifics of how and why these companies are making moves in Colorado.
BetMGM announces betting lounges in Broncos Stadium
Striking a partnership with a team and being present in their stadium is definitely a big one for a sportsbook. BetMGM did just that, announcing a deal with the Denver Broncos for opening a betting lounge in their stadium this upcoming season.
This year might be a little slow in terms of having fans in stadiums, but the long-term play of being engaged with fans within the stadium could prove to be very fruitful in capturing customers and getting them to download BetMGM’s app.
And that’s the main purpose of the full-service bar and lounge – it will not feature a physical sportsbook or betting kiosks, but fans are instead encouraged to use the mobile app to play their wagers.
Fans over 21-years-old are allowed to enter the lounge. BetMGM are expecting that it will be the younger end of the potential customer segment that will be especially receptive to trying out legal sports betting digitally.
DraftKings launches retail sportsbook
While BetMGM are placing their wagers on fans embracing digital channels, DraftKings are going the other way. The fantasy sports giant turned sportsbook have already had their mobile app available in the state since the market went live and are now adding a brick-and-mortar sportsbook as well.
Located inside the Mardi Gras Casino in Blackhawk Colorado, the retail operation features self-service betting kiosks, a ticket counter and a small lounge with TV’s. This is a temporary setup for DraftKings – the company also announced that they are already underway with building a permanent, state of the art space within the casino that will feature a full bar, more TVs and VIP service.
This should be a good move to take a chunk of the potential retail sports betting market in the state. DraftKings’s stock has been on a tear recently as our head trader John Todora covered in this video. Expect to see them entering any new market that becomes available.
Last but not least, the sports betting market in Colorado has another new player in Las Vegas based Circa Sports, who recently launched their mobile app in the state. This is the first time the company ventures out from Nevada, which tells you something about just how much potential operators see in Colorado.
Circa Sports have been in operation for about a year in Las Vegas and are trying to differentiate in the market by not shying away from sharp bettors and giving customers transparent access to data, along with fair odds.
Will that be enough to battle for their share of the Colorado market against the bigger players? Time will tell.
We are a bit more than two years into the legalization of the sports betting market in the US, since the overturning of PASPA in May 2018. The market is still nascent, but things are developing fast. And this is great for sports traders – we certainly welcome competitive odds and loads of options.
The ScoreMetrics Lab will keep you updated on all of the developments in the market, so make sure to subscribe to our newsletter to get the latest.
To prepare for the return of sports and to learn everything you need to know about smart investing in the sports betting market, check out our head trader John Todora’s new book – “Zero Correlation Investing – The Score Metrics Secret”. It’s currently on sale for a limited time, so go get yours now!
The ScoreMetrics Lab is the engine that runs the Sports Trading System operation, consisting of a team of researchers and writers who are constantly testing and retesting algorithms. They work hand in hand with our Head Trader and Creator of ScoreMetrics, John Todora to help find new breakthroughs and develop new systems.