On November 5, voters in Colorado will decide the fate of Proposition DD, which would allow the three casino towns to offer sports betting.
Besides legalizing both online sportsbooks operated in the three cities, the measure authorizes a 10 percent tax that would be funneled into the state’s water conservation project.
The legislature approved sponsor Rep. Alec Garnett’s H.B. 1327 over the summer. Polling shows that the measure is favored among a majority of those surveyed. The state constitution requires voter approval for any tax increases, and also requires voter approval for any revenues collected in excess of the rate of inflation plus annual population growth.
The state anticipates that sports betting will raise about $16 million in taxes during the first five years, the bulk of which would go to fund projects of the Colorado Water Plan.
The pastime will also be somewhat profitable for the casinos that offer sports betting; they will be able to retain about 5 percent of the total bets made.
