Colorado lawmakers discuss taxing free sports bets
Colorado lawmakers have introduced House Bill 1311, which would tax online sports operators for free bets they offer to players.
The proposed tax would bring in an extra 30% of revenue to various Colorado water projects.
If approved, Colorado lawmakers have said that taxing online sports operators would generate US$12 million, which would go towards water planning, conservation efforts, and irrigation system repairs.
The bill’s sponsor, Senator Dylan Roberts, explains that the state needs all the funds it can get to help support Colorado’s water supplies, referencing chronic drought and climate change, and a need to match the demands from a growing population as the reason for the bill.
“The thought with this bill is that it’s time to make this change. It’s a great way to generate more funding,” Roberts said.
Online sports betting became legal in Colorado in 2019, making it one of the first states to do so. Colorado currently imposes a 10% tax on sports betting operators.
Yet, in recent years, various states have considered raising the tax rate to generate more revenue. Ohio, Illinois, and Massachusetts all raised their tax rates, with Illinois increasing its from 15% to 40%.
HB 1311 is set to be heard by Colorado’s House Finance Committee on April 21.
Dig deeper
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
Verticals:
Sectors:
Topics:
