Colorado sports betting declined in December for a second consecutive month but finished the year at nearly $4 billion, according to a report from the Colorado Division of Gaming.

The $461.4 million bet in December was down 2.9% from November but up more than 60% from December 2020. Betting also declined slightly in November. Even so, wagers in the final three months of last year totaled more than $1.4 billion and accounted for the three highest monthly totals since legal sports betting began in Colorado in May 2020.

Colorado sports betting declines slightly in November

Colorado gamblers wagered $3.9 billion in 2021, more than triple the $1.2 billion bet in 2020, which included eight months of legal wagers and abbreviated seasons in many professional and colleges sports. Colorado’s 2021 total ranked sixth among the 31 states with legal sports betting. Nearly all the bets in the 20 months of legal betting in Colorado — 98% — were made online.

“By nearly every metric Colorado is hitting above its weight class, with the exception of the tax revenue sports betting generates,” said Eric Ramsey, an analyst for the PlayUSA.com Network, which follows regulated gaming. “Importantly, tax revenue ramped up at the end of the year, which is a positive development. That could continue as the market expands and sportsbooks begin to taper their promotions (free bets).”

Football boots Colorado sports bets to a record in October

Colorado sportsbooks pay a 10% tax on what they keep after paying winners and subtracting free bets; those funds are set aside for Colorado water projects. Free bets totaling $18.3 million and a good month for bettors — they won 94.6% of the amount bet, the highest total since February — combined to reduce sportsbook revenue to $5.25 million from $19.3 million in November. As a result, tax revenue fell from nearly $2 million in November to $770,370 in December.

Colorado sportsbooks generated $250.1 million in revenue and paid $11.7 million in taxes in 2021.

Colorado sports betting surges to record total

Pro football and basketball again dominated the betting, with the two sports making up more than half of the December handle — nearly $262 million combined. College basketball and football together generated nearly $52 million, while all other sports generated $68.1 million in bets and parlays and combination bets generated nearly $80 million.

Sports betting in Colorado spikes in August, among pacesetters in the U.S.

Colorado voters legalized sports betting by approving Proposition DD in November 2019.