Colorado says record year in sports betting tax revenue helping water conservation efforts
Colorado saw a record fiscal year in sports betting last year, resulting in over $36 million in tax revenue after over $6.3 billion in bets were made, according to the Colorado Department of Revenue. Of that, over $33 million will go to Colorado's Water Conservation Board, the department said.
Another $1.74 million of that money will go to casinos and the local governments where they operate to help cover the financial impact of expanded gaming in the state, the Department of Revenue said.
"These funds are crucial for supporting critical water initiatives across our state," Christopher Schroder, director of the Colorado Division of Gaming, said in a statement. "As we celebrate this success, we also remain deeply committed to promoting responsible gaming and ensuring that all participants can enjoy a safe and secure environment."
Colorado voters narrowly approved sports betting in the 2019 state and local election, making it the 19th state to legalize it. Some supporters of the measure felt it would've received higher support if the language of the ballot measure had been clearer. But it passed by a margin of 51%-49%, generating modest tax revenue at first, a trend seen in most other states that legalized sports betting.
In the years since, however, the state has raised over $100 million. In fiscal year 2024, the Colorado Department of Revenue distributed over $29 million. The department says the new record also represents a 354% increase in total taxes compared to the first fiscal year of sports betting, in fiscal year 2020-2021.
Colorado's Department of Natural Resources developed a comprehensive water management plan due to increased demands on the state's water supply and dwindling supply in rivers, reservoirs, and other sources.
"If no new water projects or strategies are implemented, modeling for the driest periods shows Colorado communities could need 230,000 - 740,000 acre-feet of additional water per year by 2050," the department wrote in the water plan's executive summary.
The plan was ordered by former Gov. John Hickenlooper in 2013, and the Colorado Water Conservation Board implemented it in 2015. It was replaced by an updated plan in 2023 that incorporated input from every county and over 9,000 farmers, companies, organizations, government agencies, and other stakeholders.
About 93% of revenue from the tax on casinos helps fund the implementation of Colorado's water plan, according to Water for Colorado, a coalition of nonprofits that work on water conservation throughout the state. Water for Colorado calls the agreement "a win for Colorado's water."
Anyone who may be struggling with gambling addiction can visit BetSmart.Colorado.gov or call 1-800-GAMBLER.
