Colorado Votes to Retain All Sports Betting Tax Revenue for Water Projects

Colorado to Keep Full Sports Betting Tax Revenue

Proposition JJ removes the previous $29 million cap on sports betting tax revenue that Colorado could keep. Previously, any revenue beyond this threshold was returned to sports betting operators.

The vote took place on Tuesday, November 5, 2024. Approximately 76% of voters supported Proposition JJ. The final result, announced at 5:40 PM on Wednesday, showed 75.9% in favor and 24.1% opposed.

Proposition JJ is the result of legislation approved by state lawmakers and signed by Governor Jared Polis in May.

The 10% tax on sports betting operator revenue was initially established in 2019 when voters legalized online and in-person sports betting by passing Proposition DD. Since 2020, this tax has generated nearly $80 million.

In the fiscal year ending June 30, the $29 million cap was exceeded by about $900,000, with projections indicating it will be exceeded again in the current and following fiscal years.

How Will the State Use the Funds?

The revenue will support projects such as upgrading canals and locks that supply water to farms and ranches across the state, protecting habitats for endangered fish species, and addressing recreational water needs.

It will also help fill a looming funding gap. The Colorado Water Conservation Board estimates a funding need of approximately $3.85 billion for loans and grants over the next 30 years. With current funding levels, there’s a projected shortfall of around $1.5 billion.