Lucky Seven: Colorado On The Verge Of Issuing Its First Sports Betting Licenses
The Colorado constitutional sports betting is anticipated to successfully meet its May 1st deadline. Following this, the state is likely to grant approval for the first batch of sports betting licenses.
The agenda for a Thursday meeting of the Colorado Limited Gaming Control Commission outlines the consideration of seven applicants. While the outcomes of these applications are uncertain, the potential results of approval or denial can be easily anticipated.
Who could have issued the first licenses for sports bets?
All seven candidates on the plan represent Colorado casinos.
- Monarch Casino Resort Spa, Black Hawk Inc.
- Kings, Queens, and Jacks LLC is the proud owner of Saratoga’s Black Hawk Casino.
- Dostal Alley Inc. was incorporated as D/A.
- Double Eagle Resorts Inc. is the operator of the game and the luxurious Double Eagle Resort.
- The name of the company is Brass Ass Casino, which is owned by Casino Holdings Inc.
- Holland Ventures Inc., operating as J. P. McGill & Casino Hotel
- dba Midnight Rose Hotel & Casino Incorporated
It is unclear whether the fee plans to review all seven licenses, and it is possible that only a few or none of them will be approved.
At this point, it would be quite surprising if the final option, none, was chosen. The commission has expressed its commitment to assisting operators in going live on May 1 by doing everything possible.
The significance of May 1 lies in its role as the decisive day when the constitutional sports betting ban comes to an end. In accordance with Colorado law, permit holders are prohibited from accepting bets, even if they are fully prepared to do so prior to this date.
Obtaining registration approval is a critical stage in these arrangements. If that process is delayed or postponed, casinos and sportsbook operating partners may be able to save money on their preparations.
Some candidates have already begun the application process, which involved negotiating industry access agreements with sportsbook providers.
Why Colorado & casinos will collaborate with sportsbooks rather than creating their own
All of these candidates are located in Black Hawk, Central City, and Cripple Creek. However, not all of them have revealed their connections with casino operators.
In Colorado, running their own casinos is not mandatory, but rather an option. Two examples of blackjack brands operating in various regions of the nation include Hard Rock and MGM.
Nevertheless, the aforementioned casinos rely on externally developed betting software provided by other companies. Consequently, on their platforms, they simply showcase their proprietary models to the users.
It appears that most, if not all, operators in Colorado will be outsourcing their sportsbook operations to rdic. By doing this, the casinos receive a monetary benefit similar to a finder’s fee for simply offering the opportunity.
These casinos have applied for master licenses that grant them the freedom to operate in both online and retail settings. For instance, Double Eagle has had an agreement with PointsBet since last July, enabling them to avail such benefits.
However, not all of the candidates currently have such agreements in place, as Dostal Alley remains competitive in the market.
Over time, the number of users decreases, resulting in a smaller population of individuals unfamiliar with the Centennial State. Nevertheless, possessing a master’s registration may be beneficial for two applications that are currently pending.
Why these gambling might be competitive in the market
Candidates approved on January 20 will have a fresh beginning, although the duration of their approval may be brief if the committee grants more licenses at Thursday’s meeting. Nonetheless, notable companies like PointsBet have already established a presence in Colorado.
Twin River teams up with DraftKings and FanDuel, while Jacobs Entertainment introduces theScore Bet. Additionally, Century Casinos partners with Circa Sports.
Betfred, among others, is eagerly waiting in the wings with a keen interest in obtaining jurisdiction. If these casinos acquire their licenses, they would become attractive choices for operators.
The current contracts do not favor either side as they are not comprehensive or exclusive. This applies to the casinos as well. For example, the agreements with Circa and FanDuel only pertain to online operations and do not include offline activities.
Furthermore, these businesses have the freedom to enter into similar agreements with different casinos and betting operators. None of these contracts impose exclusivity on such agreements.
Operators must submit an application to the state in order to obtain a merchant license. While these licenses are more affordable to acquire and keep up with compared to learn licenses, they are still contingent upon operator approval.
The process of launching legitimate sportsbooks based in Colorado may commence on Thursday. If these sports betting licensees obtain what they desire, they will likely have a higher probability of being among the first to accept bets in the state.
