Water projects getting a boost from record breaking Colorado sports betting revenue

With March Madness underway, many people are placing bets on their favorite games. Colorado sports betting set a record in January, and the revenue helps fund water projects across our state.

Work wrapped up this week at the Lower North Fork Sediment Stabilization Project in Jefferson County. It's an area at elevated risk of erosion due to its steep, rocky terrain and its proximity to the 1996 Buffalo Creek Wildfire site.

"Sports betting has really been instrumental to getting this project going," said Margo Yousse, the watershed project manager with the Jefferson Conservation District. "From that fire, we saw all of this sediment and debris just come flowing into the stream and then getting dumped into the Strontia Springs Reservoir."

Yousse said the goal of the project is to keep the sediment in place by slowing water down with anti-erosion structures as well as seeding and planting trees.

"The more work that we can do to protect the watershed higher up in the hills, then it's ultimately going to benefit everyone downstream with healthier, cleaner water to drink," explained Yousse.

Yousse said the soil underneath is decomposing granite that crumbles very easily. She added, planting willows will help keep the soil in the ground where it's at, plus a mat with seeding underneath will help keep the seeds from blowing away and retain moisture so plants have a better chance of growing and keeping the sediment there.

"This kind of work is called process-based restoration. We're trying to restore processes that a healthy river has, and by slowing the water down, with these anti-erosion structures and some in-stream stabilization structures, we're hoping that sediment is going to drop out and fall where we want it to instead of falling into the reservoir,' said Yousse.

It's important environmental work, but it can be costly. It's getting done thanks to sports betters in Colorado.

Colorado sports betting broke a record in January, generating over $5 million in tax revenue. Colorado Division of Gaming Director Christopher Schroder said the division is also seeing over a 30% increase year over year in tax revenue. That means more funding for Colorado's vital water projects, as sports betting is taxed at a 10% rate.

"We definitely support all the different projects that they work on and are pleased to see that the tax revenue goes to such a worthy cause. I think we can all agree that the different water projects in Colorado are extremely important to all of us." said Schroder.

Scroder added, "since 2019, state proceeds from sports betting have raised a total of over $104 million for water projects. That includes a record breaking of about $33.5 million during the 2024 to 2025 state fiscal year, which ended June 30, 2025."

Schroder estimates that funding for water projects will grow to over $120 million by the end of the year.

Sports betting revenue supports Colorado's Water Plan Grant Program, in which local communities bring projects forward to address water risk and resiliency. The grant program has helped fund projects related to agriculture and land use planning.

Jeannine Shaw with the Colorado Conservation Board said the projects are, "making sure that we're fire smart, and that we really do have healthy watersheds, so that we're more resilient to flood, fire, drought and all of those things as well as water and storage supply. Our program has also funded Wildfire Ready Action Plans, so it's helping communities identify risks to water infrastructure."

The Colorado Water Conversation Board is the state's primary water policy agency, and their mission is to conserve, develop and protect Colorado's water. The board has the Colorado Plan which has been in place since 2015. The plan is a strategic plan for Colorado water, with 50 agencies overseeing the Water Plan Grant Program.

Shaw said that last fiscal year, the grant program awarded $37 million, and that demand is high. Last fiscal year, they had about $60 million in requests for funding.

"Organizations are ready to implement these things, especially in years like this where water really is more front of mind for folks," Shaw said. "Ensuring that we can fund water projects and agriculture and all of these things that make us more resilient."

Shaw added ensuring resiliency means taking efforts and action in every area of the state. Meanwhile, Yousse added the revenue from sports betting and funding from the grant program has been impactful already.

"It's incredibly important to have that sports betting revenue to get this project done, and projects like these, that revenue is so important, and much needed too," said Yousse. "Everybody wins and the water is cleaner. Rate payers don't have to pay as much to clean the water. So yeah, I'm happy with how it turned out."

In February, the Colorado Limited Gaming Control Commission awarded $3,7 million in Responsible Gaming Grants. More information and resources about those grants can be found on the Colorado Department of Revenue's website. Other resources for smart and responsible betting can be found at betsmart.colorado.gov.