Legalized sports betting can begin in six months in Colorado.
Proposition DD, the measure that was too close to call on election night, widened its lead in overnight and morning vote-counting, and The Associated Press predicted Wednesday afternoon that it will pass. With more than 1.4 million ballots counted, Prop DD had 50.8% of the vote by late afternoon, according the Colorado Secretary of State’s Office.
The proposition’s approval will allow the state’s 17 casino operators to apply for licenses for physical or online sportsbooks, where bets can be placed on the outcomes of sports events. The casinos have to pay a 10% tax on net proceeds, and a majority of the money will go toward Colorado’s water plan.
The measure to allow Coloradans to place bets on the outcome of sporting events had little opposition, but the ballot language, which characterized it as a tax increase under the Taxpayer’s Bill of Rights, may have put off some voters.
The Colorado Division of Gaming is tasked with regulating the market, and the state expects to collect up to $29 million a year from the new tax.
A coalition of Colorado conservation and sports groups lauded the proposition’s passing, calling it a big win for Colorado.
“Taxing the revenue from legalized sports betting will create a dedicated down payment to help ensure that Colorado has healthy rivers and enough water for all,” Western Resource Advocates wrote in a statement Wednesday. “Still, it’s important to remember that this is just the first step toward addressing the growing gap between the water we have and the water we need.”
Democrats and Republicans celebrated the bipartisan-backed effort, with state Sen. Kerry Donovan calling Proposition DD an investment in Colorado’s water future.
“With the growth of the Front Range, and climate change shifting us to a more arid future, today marks an important step for the future of agriculture and the quality of life for all of us who call Colorado home,” the Democrat said.
Although some opposed the measure on moral grounds, others saw it as a way to better regulate an industry that was already operating in the state.
“Black markets aren’t conservative, and they aren’t good for Colorado,” Republican House Minority Leader Patrick Neville of Castle Rock said in a statement. “Bringing sports betting into the daylight, regulating it and leveraging it for the benefit of our water future is a common-sense approach.”
Colorado is the 19th state to legalize sports betting, according to The Associated Press.
U.K.-based sports betting company Smarkets entered into a contract with casino developer Full House Resorts to offer online sports betting in Colorado this year in anticipation of the vote.
“It’s great news that the people of Colorado have legalized sports betting, and we can’t wait to bring our sportsbook platform, SBK, to the Centennial State in 2020 through our partnership with Full House Resorts,” Smarkets CEO and founder Jason Trost said in a statement. “As more and more states adopt sports betting legislation, the industry will be brought further into the light and regulated in a more professional manner, compared with the previous status quo of offshore bookmakers dominating the market.”
