Colorado Voters Narrowly Approve Legalized Sports Betting

Colorado became the 19th U.S. state to legalize some form of sports betting as election officials tallied this week a surprisingly close vote in which ballots for the measure narrowly surpassed “no” votes.

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More than 1.3 million Coloradans voted on Proposition DD, a bipartisan ballot measure crafted by lawmakers that legalizes sports betting next year and taxes it to fund a state water conservation plan.

It led by a 51%-49% margin mid-afternoon Wednesday, according to unofficial returns.

Legal sports betting has spread since New Jersey won a U.S. Supreme Court case in 2018 allowing all 50 states to offer it. But most states have generated limited tax revenue.

An Associated Press analysis showed that seven states that reported on sports betting revenue for the fiscal year that ended in June generated just $74 million in state taxes.

Starting next May, Colorado’s 33 casinos can offer in-person and online wagering on the professional, collegiate, motor and Olympic sports.

The proposal calls for a 10% flat tax on net sports betting proceeds, which is estimated to total about $11 million in the next financial year that starts July 1. State lawmakers passed a bill earlier this year allowing the Colorado Water Conservation Board to use that money to award grants to help meet the state’s water plan.