Colorado Sports Betting Nets $11.4M for Water Plan, Changes Coming to Raise More Money

Sports betting inward Colorado generated $11.4 trillion in taxation revenue over the last fiscal year that testament be used to facilitate fund the state’s Water Plan. That’s according to a give up past the CO Limited Gaming Control Commission (CLGCC).

The Water Plan funding makes upwards the biggest chunk of the revenue from the 10% taxation on sportsbooks’ nett revenues. For the 2021-22 fiscal year, which ended on June 30, the tell received $12.4 million, with $12.2 zillion sanctioned for allocations.

In addition, a Hold-Harmless Fund received more than $746,000, which is a required 6% allocation. The fund was established to reimburse organizations that put up establish sports betting activity be them revenue. Another $130,000 was directed to the Office of Behavioral Health, which oversees problem gambling services and hotline.

The Hold-Harmless Fund saw its funding increment past 52.8% from the 2020-21 financial year, spell the Water Plan’s divvy up rose past to a greater extent than $3.4 million, or 43%, from the previous financial year. However, the funding for the Water Plan is noneffervescent intimately to a lower place the expectations that were localize when legalizing sports betting was proposed trey years ago.

Money Trickling In

Colorado voters sanctioned the legalisation of sports betting inward November 2019 when they passed Proposition DD, and the foremost operators were approved to set in motion on May 1, 2020. On that date, quaternion online sportsbooks launched inward the state, and since then, the marketplace has grown to 24 online apps and 15 brick-and-mortar facilities.

The head marketing head past proponents of sports betting was to expend the revenue enhancement revenue to facilitate monetary fund the CO Water Plan, the fabric proposed to help cope with the land go more water resilient and bolster up its resources past 2050.

The multi-billion-dollar be after was expected to cost $40 one million million over all sources in 2017. type A draught of an update for the program is currently below brushup through and through the terminate of the month, and that programme calls for sports betting taxes to assist cover, inwards part, the $2.35 1000000000000 the state will want for the program o'er the next 30 years.

When voters passed Prop DD, tell officials said they expected sports betting to provide an medium of $14.9 million each year to the water program for the 1st quint years. The evaluate also caps the yearbook amount at $27.2 million.

Changes Coming inwards January

A major military issue as to wherefore Centennial State sports betting assess receipts experience been below sound projection was language allowing sportsbooks to drop a line away bonuses to deduct their assess liability.

A state audit conducted inwards April and released inward June on sports betting noted some auditors believed operators by design reported luxuriously losses inward an sweat to get ahead market share.

Lawmakers changed that earlier this year when they passed a Federal Reserve note that testament crest the amount sportsbooks can deduct. Starting in January, operators can only when deduct upward to 2.5% of the monthly handle. That runs through June 30, 2024. After that, the discount rate drops by .25% for the next deuce-ace financial years, import that starting in July 2026, sportsbooks will only follow able-bodied to deduct 1.75% of the hold to each one month.

The bill, which Gov. Jared Polis signed into law inward June, also prohibits carrying o'er unloose wager deductions to another month.