Colorado became the 19th state to legalize sports betting after a measure on the matter was approved narrowly by voters on Wednesday afternoon. Legal sports gambling activities are expected to commence in May 2020.
Proposition DD, which had gained bipartisan support in the state Legislature, also needed to be approved by Colorado residents in order to be enforced. More than 1.4 million people of the state’s 5.696 million population cast their vote on the proposed legalization of sports betting on Wednesday.
Throughout the day, the measure bounced between winning and losing, but it was eventually passed after a surprisingly close ballot that saw votes in favor of Proposition DD narrowly surpass the “no” votes. The legislation had a 22,000-ballot lead by the end of the Wednesday vote.
Most of the state’s 64 counties rejected the sports betting proposal. However, it gained enough support from Colorado’s most populous areas, including Denver, Adams, Arapahoe, Douglas, and Jefferson Counties.
The measure’s narrow win surprised many. Yet, Proposition DD backers admitted that its language likely confused some of the voters who turned out yesterday.
Commenting on the Wednesday vote, Curtis Hubbard, a spokesperson for the bipartisan group that backed the sports betting legislation, said that “in terms of the ballot language, it was important that we communicated from the outset who was paying the tax and what it was going to fund.” He added that the fact that Prop DD was supported by a bipartisan group helped “prevent support from eroding.”
Legal Betting Commences May 2020
Under Prop DD, legal sports betting in Colorado will start in May 2020. People aged 21 and older will be able to legally place a bet on a plethora of sports and leagues from professional sports and eSports to collegiate action and the Olympics.
All of the state’s more than 30 casinos will be eligible to conduct sports betting activities either at brick-and-mortar facilities at their gaming floors or digitally.
Casinos offering sports betting will be taxed at 10% on revenue from the practice. The majority of wagering tax money will go toward the state’s water management plan that needs up to $40 billion. The remaining tax dollars will be distributed among the Colorado Division of Gaming, local governments, and organizations and groups whose work is centered around tackling problem gambling and gambling addiction.
State lawmakers expect the nascent sports betting market to generate between $6 million and $15 million per year in the first three years since legalization. Revenue from the practice could potentially reach $29 million as the market matures.
Of Colorado’s neighboring states, only New Mexico has permitted sports betting services to be provided on its territory. Sports betting action can only take place at tribal casinos. New Mexico’s first sportsbooks opened doors in the fall of 2018.
Colorado has thus gained some regional competitive advantage with Wednesday’s vote, unless a neighboring state passes a sports betting legislation and launches sports betting activities before May 2020, but this is unlikely.
Source: Colorado voters narrowly approve sports betting, turning on new spigot for water project funding, The Colorado Sun
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