Sports betting may arrive in Colorado

Voters will decide whether to legalise the sports betting segment in Colorado and use its tax revenue to conserve water resources in the state.

US.- The sports betting segment may arrive in Colorado soon as voters will decide its future. The state would use it as a revenue generator to conserve a most valuable natural resource: water.

The Legislature referred proposition DD to the ballot as it will decide if it allows online and in-person wagering. The segment would cover professional, collegiate, motor and Olympic sports starting in May.

Economists in the state forecast sports betting to generate US$11 million in Colorado during fiscal year 2020-21. 

“It became clear as we worked on this proposal that water was the issue that would bring Democrats and Republicans, environmentalists and agriculture interests together,” said Representative Alec Garnett. “This ballot question elevates water into Tier One of Colorado’s priorities that people need to pay attention to.”

The bill

The proposal would set a 10% flat tax on net revenue, which must be approved by residents by Law. Furthermore, it would allow casinos to host sportsbooks and limited in-person betting, as well as mobile and online wagering.

Sports betting in Colorado would turn tax revenue to a Sports Betting Fund, created through HB19-1327. It will favour paying money owed to the State General Fund to cover the Commission’s start-up costs and operating expenses.

Also, it would transfer 6% to the Hold Harmless Fund. It will mitigate the loss of revenue incurred by colleges, cities, counties or horse racing entities as a result of legal wagering.

Furthermore, US$130k would be allocated to the Office of Behavioural Health in the Colorado Department of Human Services to prevent and treat gambling-related harm, while the rest would be used for the Colorado Water Plan Implementation Cash Fund.