Colorado Voters to Decide on Directing Sports Betting Tax to Water Projects
- 23 May 2024
- Gambling News
Voters in Colorado will decide in November whether to lift the $29 million restriction on sports betting taxes that go toward funding water projects in the state.
that following the bipartisan House Bill 24-1436 (HB 24-1436) was signed into law by Governor Jared Polis (D). At the moment, sports betting in Colorado is subject to a 10% tax rate. The total money is limited to $29 million, with part of it going toward operator oversight and the remaining portion going toward water initiatives.
Proposition DD, a ballot initiative to legalize sports betting and allocate proceeds to the state's water projects, was adopted by Colorado voters in November 2020. The next year saw the introduction of legal sports betting there. The sector has contributed more than $65 million to Colorado's coffers since then.
"Over the past five years, more than $65 million has been generated from sports betting tax revenue to fund projects that would ensure our state has enough water to meet its needs by 2050. This bill increases funding for these important water conservation projects rather than increasing the profits of casinos and sports betting operators,” according to post on X (formerly Twitter) by ConservationColorado.
The Water Plan Implementation Cash Fund will receive sports wagering taxes earned above the $29 million cap if voters approve the ballot issue. In the event that people reject the measure, gambling operators would receive a refund of those surplus funds.
Sports Betting Has Gained Some Benefits for Colorado
The 10% sports wagering tax in Colorado is one of the best in the nation and is far lower than the 51% in New York and the 36% in Pennsylvania.
Colorado boasts a competitive and open sports wagering market that has adopted a multi-operator mobile approach, in contrast to certain other states, particularly those in the West like Oregon, New Mexico, and Washington. Data show that the state has benefited somewhat from the methodology.
“In its first year, Colorado sports betting generated nearly five times more money for statewide water projects than anticipated,” according to the Colorado Gaming Association (CGA). “State officials’ initial projects for 2020-2021 were between $1.5 and $1.7 million. Recent reports indicate that the gaming industry has generated more than $11.4 million for Colorado’s Water Conservation Board. As the sports gambling industry continues to grow, so will Colorado’s prospects of a secure water future.”
On the other hand, no fiscal year has seen sports betting tax revenues above the $29 million cap that voters will decide to raise.
Colorado Requires Water Funding
According to a statement from General Assembly Democrats, HB 24-1436 "supports water projects across the state, including water storage and supply, agricultural projects, and watershed health and recreation projects."
Colorado stands to gain from legal sports wagering if it is authorized, as the state is among the fastest expanding in the nation and its long-term water needs are rising at an exponential rate.
Colorado's population increased from 4.43 million at the beginning of the century to 5.84 million at the end of 2022. Some projections indicate that the state's population may nearly double by 2060, driving up major water demand in the process.
