Colorado has now officially become the latest state to pass legislation to legalize sports gambling. According to The Associated Press, the voters of Colorado voted in favor (narrowly) of Proposition DD, a ballot measure aimed at legalizing sports betting throughout the state.
The earliest the measure will go into effect is May 1, 2020. Consumers will be able to place bets both in-person at any of the state’s 33 casinos, or on mobile apps that are licensed by the state’s gaming authority.
The bill will tax casinos at a flat 10-percent rate on all profits derived from sports betting. The majority of the tax revenue will then be used to fund Colorado’s water plan, with the remaining revenue going towards regulation and gambling addiction programs.
Early estimates projected an additional $10 million in tax revenue for Fiscal Year 2020-21, and $13.5-$15.2 million for Fiscal Year 2021-22. Tax revenue could reach as high as $29 million when it’s all said and done (the full fiscal impact statement can be found here).
The race was tight, particularly on election night, despite no significant opposition to the bill. This is peculiar, given Colorado voters’ willingness to decriminalize both marijuana (legal throughout Colorado) and hallucinogenic mushrooms (decriminalized only in Denver).
Most political pundits agree that the language of the bill likely turned some voters off.
The opening line for the measure on official ballots read: “Shall state taxes be increased by twenty-nine million dollars…”
Those ten words are enough to scare off most voters who oppose raising taxes in any way, shape, or form.
The full wording went as follows:
Shall state taxes be increased by twenty-nine million dollars annually to fund state water projects and commitments and to pay for the regulation of sports betting through licensed casinos by authorizing a tax on sports betting of ten percent of net sports betting proceeds, and to impose the tax on persons licensed to conduct sports betting?
With the passing of Proposition DD, Colorado is set to join 11 others states where sports gambling is already legalized, and another seven states where legislation has passed and launch is upcoming. 23 other states have pending legislation, while eight states have taken no action on the issue.
The people of Colorado have spoken. Sports betting is coming to the Centennial State.
