Participation in Colorado’s recently launched sportsbook is exceeding expectations. Since it became legal in May, the state has collected $814,661.34 in taxes from sports wagers.
The figures were provided by the Colorado Division of Gaming.
In July bettors put down $59,183,619.73, resulting in $241,866.91. In August the amount wagered was $128,646,209.09, resulting in $189,461.84. In September the numbers were $207,655,942.72 wagered and $69,771.64.
The decreasing taxes compared to rising bets can be attributed to the promotional free betting that operators have been offering. Promotions are not taxed.
According to Dan Hartman, director of the Colorado Division of Gaming, “[T]he net betting proceeds comes from the money that’s bet, the money that’s returned to players, and then the operators get to take off their promotional money, and their excise tax that they pay to the federal government before we get to the net proceeds.”
Colorado’s sports betting market has risen to become the fifth largest in the nation. Most of the taxes raised by it go to the Colorado Water Plan.
