Colorado’s voters will vote in November to decide whether they will be the 20th state to have legalised sports betting.
Many lawmakers remain optimistic and hope residents will say yes and provide the state with another stream of tax revenue. Proposition DD was proposed as a way to generate $29 million in new taxes, though for the first five years it will only generate an approximate $16 million.
The November 5 ballot can be a big change for the state as it will decriminalize the sports betting industry if the majority of voters say yes.
The basic idea behind Proposing DD is that it will decriminalise all forms of sports betting in the state. In exchange, a 10 percent tax will be levied on all sports betting proceeds. Current gaming taxes depend on the level of revenue each gaming establishment generates. It can reach up to 20 percent if the gaming operator is taking in high numbers.
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If Proposition DD gets passed, legalized sports betting will begin in May 2020. This will allow for wagers on most sporting events. The only exemptions are for high school and college sports. To have stringent control of sports betting in the state, all the wagers will have to go through one of Colorado’s three licensed casinos: Black Hawk, Central City and Cripple Creek.
To place a bet, bettors will have a choice to either go in person or to place a bet online. Though this may seem like the state’s casinos will be the ones running the show, they will most likely outsource their sportsbook management to pros like FanDuel so that they can just take in the profit.
One of the main concerns when it comes to any form of gambling legalization is crime. However, the legalization of sports betting will most likely eradicate illegal betting operations and the only concern for the authorities should be on the integrity of betting operators to ensure they are not cheating their bettors.
The taxes collected will first go to Division of Gaming, which regulates Colorado’s gaming industry. The bulk of the proceeds is expected to go to the state’s water plan to better improve the state’s water infrastructure.
A portion of these taxes will also be used to fund problem gambling initiatives in Colorado. The taxes in general will be split up to help different agencies and contribute to the overall development in the state.
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