Documents prepared by the Colorado Department of Revenue shows what sports betting may look like in the state. The documents were obtained by the public records request from Colorado Public Radio.
Any sports betting would require that the state legislature pass a bill removing it as a criminal act. It would also have to criminalize the act taking place anywhere outside of sanctioned locations, such as casinos or racetracks.
Apparently, the Department of Revenue is seen as most likely to regulate sports betting. Michael Hartman, executive director of the department is quoted as saying “We think that it is a better fit for the Department of Revenue, just given that we do have enforcement capabilities for horse racing, casinos, the lottery, etc.” He sees it as unlikely to be a service offered by the lottery.
Because the state proposes to tax sports betting, and because taxes cannot be raised in the state without a vote of the people, it is highly likely that the voters will have a say in whatever framework is adopted. The Department of Revenue is recommending a tax rate of between 6.5 percent and 16 percent of gross proceeds. It argues that a higher rate will discourage participation and drive players underground.
The department recommends licensing fees for vendors offering the service to pay for regulation. It also recommends creating a commission under the Division of Gaming or Division of Racing or an entirely new commission. It also recommends allowing racetracks and mountain casinos in the casino towns of Cripple Creek, Blackhawk and Central City as well as racetracks, to be able to take sports wagers.
Hartman is quoted in the document as saying, “From a practical political standpoint I think that both of those industries are going to have to have some level of involvement or it’s going to be pretty difficult to get anything passed through the legislature.”
Some casino owners scoff at the idea of allowing racetracks to play in this arena. David Farahi, chief operating officer of Monarch Casino and Resorts, told Colorado Public Radio, “We believe it will be the voters of Colorado that decide whether they want sports betting at all,” and pointed to past defeats when voters killed attempts by racetracks to expand into some casino games.
Hart opposes the “integrity fee” that national sports leagues such as the NFL and NHL have lobbied a number of legislatures for.
He favors the use of mobile platforms to make bets, but only after the patron signs up at a brick and mortar location to confirm his or her age. The apps should have a feature that would verify location and include a feature so patrons can “self-exclude” for a time if they feel they are overdoing it.
