Colorado’s status as a testing ground for smaller and alternative sports betting operators is facing a significant shift, with SI Sportsbook becoming the latest platform to exit the Centennial State. This marks the seventh such departure in approximately a year, as the sports betting industry across the United States experiences a trend of contraction rather than expansion in 2024.
The ongoing decline comes amid a year where no U.S. jurisdiction has expanded gambling, including sports betting or online casino gaming. Missouri may be the only state to change this pattern in November when voters will decide on a potential legalization measure.
Should Missouri reject the proposal, 2024 would be the first year since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 without any new legalization of gambling in the U.S.
Efforts to legalize digital wagering have seen obstacles in various states, including Georgia and Minnesota. These states have encountered challenges ranging from moral objections to complications in linking legal wagering with other forms of gambling, such as video lottery terminals, or conflicts involving charitable and tribal gaming interests.
Even in states where online sports betting remains legal, consumers are witnessing a shrinking array of options. Colorado has felt this impact more acutely than others, with Betfred, Betsafe, ClutchBet, Novig, SuperBook, WynnBet, and now SI Sportsbook all announcing plans to exit the state since the summer of 2023. SI Sportsbook is notably the third operator in Colorado to announce its closure within the past month.
Recent developments in Colorado have been swift. In the past 30 days, Betfred ceased betting operations on August 31, ClutchBet followed on September 16, and Betsafe stopped taking deposits on September 6 with a full shutdown planned for September 30. In contrast, Sporttrade made its entry into the Colorado market during this same period, illustrating the dynamic nature of the industry.
Meanwhile, SI Sportsbook, which made its shutdown announcement on its website homepage, ceased operations in Colorado on September 18 without prior notice. The notice informed users about the closure date, deactivation of deposits, and directed them to customer support for further assistance.
The platform appears to continue operating in Michigan and Virginia, though it had previously been live in over 10 U.S. jurisdictions in 2023. Colorado’s peak of around 30 live sports betting platforms has since diminished to fewer than 20.
Betfred, another significant player in the industry, has also announced the end of its operations in Arizona, effective November 4. This decision was revealed on September 19, the same day the company halted deposits, wagers, and new registrations in the state.
Any remaining balances not addressed by 10 p.m. local time on November 4 will be issued as a paper check and sent to customers. Betfred has also shuttered platforms in Maryland and Ohio earlier in 2023, further highlighting the shifting landscape in the sports betting industry.
