Colorado Casinos Post 10% Revenue Surge in 2026

Sports betting and lottery sales also reach new highs, cementing Colorado's status as an outperforming gambling market.

Mar. 30, 2026 at 5:07pm

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A photorealistic studio still life featuring a stack of casino chips, a sports betting ticket, and a Colorado map icon, symbolizing the financial success and market growth of Colorado's gambling industry.Colorado's gambling market continues to outperform the national average, driven by strong growth in both casino revenue and sports betting.Black Hawk Today

Colorado's casino industry posted $92.5 million in revenue for February 2026, a 9.8% increase from the prior year. This follows an even stronger January, with casinos generating $92.1 million, up 13.9% year-over-year. The state's sports betting market also set records in 2025, with $470.1 million in gross gaming revenue on a $5.19 billion handle. Colorado's lottery sales crossed $900 million in fiscal year 2024, nearing the $1 billion milestone.

Why it matters

Colorado's gambling market is outperforming the national average, which saw only 2.09% year-over-year growth in commercial casino revenue in January 2026. The state's young, tech-savvy population, early adoption of mobile sports betting, and lack of legal iGaming have contributed to its success. As legal gambling expands across the U.S., Colorado serves as a model for how a well-regulated market can drive significant economic benefits.

The details

Colorado has 33 licensed casinos concentrated in three mountain towns - Black Hawk, Central City, and Cripple Creek. Black Hawk accounts for 75-80% of statewide casino revenue. The state's sports betting market is also thriving, with DraftKings and FanDuel commanding around 70% market share combined. Starting in 2026, Colorado will require a 4% income tax withholding on gambling winnings, a shift that impacts serious bettors.

  • Colorado casinos posted $92.5 million in revenue for February 2026, up 9.8% year-over-year.
  • In January 2026, Colorado casinos generated $92.1 million, a 13.9% increase from the prior year.
  • Colorado's sports betting market set a record in 2025 with $470.1 million in gross gaming revenue on a $5.19 billion handle.
  • Colorado's lottery sales crossed $900 million in fiscal year 2024.

The players

DraftKings

A leading sports betting operator that commands around 35% of the Colorado sports betting market.

FanDuel

Another major sports betting operator that, combined with DraftKings, controls roughly 70% of the Colorado sports betting market.

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What they’re saying

“Colorado punches above its weight in the national gambling landscape for a few reasons.”

— Bill Christy, Author

What’s next

Starting January 2026, Colorado bettors will face a new 4% income tax withholding on gambling winnings, a change that will impact serious bettors and their expected value calculations.

The takeaway

Colorado's gambling market, fueled by strong growth in both casino revenue and sports betting, demonstrates how a well-regulated, mobile-first legal gambling ecosystem can drive significant economic benefits for a state. As the national gambling industry continues to evolve, Colorado's success serves as a model for other states looking to responsibly capitalize on the expanding legal gambling landscape.