A bill, H 1327 that would put Colorado sports betting on the November ballot passed the House last week and is now moving through the Senate.
The bill was approved by the Senate Finance and Appropriations committees after two days of hearings. It was amended once, to set aside some of the tax collected to offset potential hardships created by sports betting. That includes the state’s only racetrack, Arapahoe Park Racetrack, which would otherwise stand to lose revenue since it is written out of being allowed a sports betting license. The amendment was an effort to get the racetrack to drop its opposition to the bill.
The bill needs to move quickly in order to be passed before the Senate adjourns May 3.
Taxes from the activity would help fund the state’s water project. The bill estimates this would be about $5.7 million annually to begin with, and up to $15.2 million when the market matures.
It helped in the House that House Majority Leader Alec Garnett and House Minority Leader Patrick Neville supported the bill.
Garnett declared, “Coloradans should have the option of betting on the Rockies in the World Series or the Avs in the Stanley Cup. Voters support funding to protect our water and this will help them do their part.”
He added, “Our outdoor economy depends on access to water and healthy rivers and this will help generate much-needed funding for the Colorado Water Plan. And it is our hope that this measure will help stamp out black market sports betting.”
Neville added, “I think if we actually bring it in and regulate it in a decent manner, we will eliminate the black market. This will be a source of revenue, with the majority of that revenue going to fund the Colorado water plan.”
Others supporting the bill are the Colorado Cattlemen’s Association, the Colorado Municipal League, the Colorado River District, and the Environmental Defense Action Fund.
The bill would not legalize anything, but would leave it up to the voters to make that decision. The constitution requires voter assent for any increase in taxes, including new taxes.
If the voters approve, sports betting, which would include mobile wagering, could be offered by May 2020.
Under the bill there would be three kinds of license: Master license, sports betting operator and internet sports betting operator.
Colorado has 33 casinos, spread out over three small mountain towns: Black Hawk, Central City, and Cripple Creek. Each would be allowed to apply for a license, for an as yet undetermined fee, but good for two years. The holder of a license would be able to partner with one casino and one internet partner, or with one partner that does both, and offer an online platform.
Profits would be taxed at 10 percent. Betting would be allowed on professional and college sports, but not for esports or high school sports.
There has been some discussion from those who would also like to profit from sports betting, such as off-track betting operators. One of them Dan Kelliher, owner of the off-track betting parlor in the Mirage Sports Bar and Grill, said it was unfair that he lose business to people in his bar placing bets on mobile and watching games.
He asked lawmakers, “Is the 10 percent or 15 percent of the market we are asking for so detrimental to their business?” He added, “We are saying this is a new opportunity available to the entire state. Why not actually make it available to the entire state?”
The COO for Monarch Casino & Resort Inc. countered that casinos like the bill because it limits sports betting to entities that currently offer other kinds of gambling. It also prevents the proliferation of gambling to other vendors, which voters have said they oppose in the past, he said.
