The Colorado voters’ gamble may have paid off quickly after all.
Sports betting is off to a hot start, which means that enough tax revenue has already been collected to start tapping into Colorado water plan projects. This is despite expectations from Gov. The Jared Police administration has warned that betting will start slowly and that money will not flow into water projects until at least the second full year of sports betting.
Colorado had already collected more than $ 3.4 million in sports betting tax revenue through the end of December, which is more than enough to cover the nearly $ 2 million in start-up costs that would have had to be paid before the dollar betting began directing it to the water plan including Increase storage capacity.
Sports betting began in Colorado in May, after voters approved the DD proposal in November 2019. More than $ 1 billion has been wagered so far.
“It’s a sign that we have built a healthy, competitive and regulated market,” said State Councilor Alec Garnett, a Denver Democrat, who defended the legislation putting the DD proposal on the ballot.
The DD proposal has been shown to voters as a way to funnel money into the state’s water plan, which could have a hefty price tag of $ 40 billion. But in December 2019, the Revenue Department of Polis warned state lawmakers that it could take until fiscal year 2021-22 before enough tax revenues come in to take advantage of the water plan.
Sports betting tax revenues are still much lower than the Colorado General Assembly financial analysts forecast. But the result is that there are already a lot of sports betting tax dollars – which are generated through a 10% tax on net casino proceeds – to turn on the water scheme funding spigot.
In other words: Colorado gamblers lost a lot of money last year and water projects in the state will benefit.
It is not entirely clear how the coronavirus affected sports betting, but officials are happy with the extent of the betting that has happened.
Susan Carrier, a spokeswoman for the Colorado Department of Games, which is overseen by the Revenue Administration, said payments for the water plan are made at the end of the fiscal year.
“The department is pleased with the returns that exceeded expectations and the positive impact of the water plan in the fall,” said Carrier.
The sports betting tax revenue is just a drop in the bucket when it comes to the needs of the water plan, Garnett said, but it’s a good start. Critics of the proposal DD complained that it did little to make an impact.
Players have placed more than $ 1.1 billion in bets since sports betting began in Colorado last year.
American football saw the largest number of bets in December, with $ 88.1 million placed in bets with retail and online operators, followed by Basketball with $ 42.8 million. Coloradans continues to show their interest in betting on table tennis, with $ 10.9 million in bets on the sport last month.