Three thriving enterprises that distinguish Denver

• Denver remains profitable and popular due to its cannabis industry, sports scene, and distinctive attractions, including Red Rocks Amphitheatre.
• More than half a billion dollars in taxes and licensing fees from marijuana sales have been earned by Denver alone.
• By 2030, the major league teams in the city are predicted to experience a revenue increase of over 37%, despite already generating substantial income.
• The Red Rocks Amphitheatre generates $717 million in regional economic output annually and attracts out-of-state visitors who spend over $300 million in the area.

CNBC's quarterly Cities of Success series examines cities that have evolved into thriving business centers, drawing in capital, corporations, and talent due to their entrepreneurial mindset.

Denver and Boulder in Colorado are currently experiencing tech-driven economic booms, with Denver's skyline undergoing a transformation and Boulder's GDP increasing. The growth is due to a combination of factors, including a strong military presence, top universities, and a focus on high-tech industries such as aerospace and quantum tech, as reported in CNBC's primetime special "Cities of Success: Denver & Boulder," which airs April 11 at 10 p.m. EDT.

The increase in people and businesses has resulted in challenges such as a rising homeless population, affordability problems, and strain on infrastructure.

Denver distinguishes itself from other cities during the tech boom due to its growth in various sectors, including professional sports, outdoor recreation, and a burgeoning cannabis industry with projected double-digit growth in the future.

Cannabis correction, not retreat

Over the past ten years, the legal sale of marijuana in Colorado has contributed an astounding $15 billion to the state's economy, with approximately $3 billion of that revenue generated through taxes.

Colorado Gov. Jared Polis stated in a recent CNBC interview that the cannabis industry in Colorado generates tens of thousands of jobs and billions of dollars in economic activity, making it a strong sector.

Since 2014, marijuana sales in Denver have exceeded $6 billion, and the city's marijuana tax revenue collection surpassed the half-billion mark last year, reaching $501.5 million in August 2023.

Since 2014, Colorado has been a leader in legalizing recreational marijuana, but the state's cannabis industry has been declining due to the pandemic.

Despite a 24% drop in Denver's cannabis revenue compared to 2021, Polis remains optimistic about the future of marijuana.

The governor's Office of State Planning and Budgeting predicts a 16% revenue increase for the state overall in 2024, indicating the industry's long-term potential.

Denver Mayor Mike Johnston believes that there is still potential for growth in the city, stating that it may be a correction following the Covid pandemic.

Major league moneymakers

In 2022, Denver's four major league franchises generated a combined revenue of $1.159 billion, making the city's professional sports scene a significant contributor to its economy.

Denver ranks among the top eight highest-earning cities in professional sports across the country, alongside traditional sports powerhouses such as Chicago, New York, and Los Angeles.

According to OLBG, Denver's major franchises are predicted to experience a combined revenue increase of over 37% by 2030, as stated by sports betting analysts.

The hiring of Deion Sanders as head coach for the University of Colorado Boulder's football program resulted in a significant financial impact, with ticket sales skyrocketing by over $20 million, doubling the previous year's figures.

The economic impact of Coach Prime on the region is estimated to be $113.2 million, according to Visit Boulder.

A stage for economic success

The Red Rocks Amphitheatre in Denver isn't just a renowned music venue; it's a significant economic driver.

The venue has hosted numerous renowned artists, including the Beatles and Billie Eilish, and has been filmed by U2 and Stevie Nicks. Despite the challenges posed by the Covid-19 pandemic, the entirely outdoor venue achieved a remarkable feat in 2021, becoming the world's most-attended concert venue, as per Billboard Magazine.

The 9,500-seat venue in Denver generates a massive $717 million in regional economic output annually, according to a recent study sponsored by the city.

In 2023, Billboard ranked Red Rocks as the fourth-most popular entertainment venue worldwide, surpassed only by Madison Square Garden in New York City.

The unique geography and location of Red Rocks at 6,450 feet above sea level contribute to its unparalleled acoustics, which has helped it compete with larger venues. During the 2022 concert season, Red Rocks hosted a concert nine out of every 10 days.

The venue hosts events that support an estimated 7,300 jobs and generate a payroll of approximately $216 million annually. In 2023, out-of-state visitors attending concerts injected over $300 million into the region, benefiting hotels, restaurants, transportation, and retail sectors.

CNBC will air a special on "Cities of Success" featuring Denver and Boulder on April 11 at 10 p.m. ET.