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Sports Betting A Go In Colorado

Sports betting bills are continuing to make their way through state legislatures. One of the latest examples of that is Colorado, where HB19-1327 was crafted to “Authorize and Tax Sports Betting Refer Under Taxpayers’ Bill of Rights.” This was passed by voters in November of 2019 and plans to be functional on May 1.

The state will collect a 10% tax on the net proceeds of betting activity to fund public services, such as the state water plan. A total of $1,739,015 was appropriated for the initial startup and operating costs, which the state plans to initially pay back with the tax.

After that is paid back, 6% is set aside annually to compensate the beneficiaries of revenues generated by limited gaming and other wagering activities for any losses attributable to competition from sports betting.

Just because regulators will be ready on May 1 doesn’t mean all sports wagering apps in Colorado will be ready. Every operator will have to become approved, and only a limited number of licenses will be issued. The only places eligible for a “master license” are the limited gaming facility owners located in Central City, Black Hawk, and Cripple Creek. The law restricts sports betting to the casinos already licensed in these locations, and when they do, online wagering will be available everywhere within the state border.

Limited Number Of Licenses

There are three types of licenses that will be issued in the state. These are a master license, a sports betting operator, and an internet sports betting operator. Colorado has 33 casinos all eligible to apply for a master license. Once a casino receives a license, they can partner with a sports betting operator and/or internet sports betting operator to use online platforms.

Some of these partnerships to date include:

  • Double Eagle Hotel and Casino: PointsBet
  • Full House Resorts: Smarkets, Wynn and BetAmerica
  • Twin River Worldwide Holdings: FanDuel and DraftKings
  • Saratoga Casino: Betfred
  • Century Casino: Circa
  • Jacobs Entertainment: theScore Bet

Colorado has had a history of managing the amount and limit on gambling. Currently, there is a $100 limit on every casino game in the state.

However, sports wagering will be different in allowing the casinos to set their own limits. Online gaming is also limited to sports betting. It does not include or add any online poker or casino games.

Right time for Centennial State

Passing this bill was no easy task for Colorado. They are known to be progressive when it comes to same-sex marriage and marijuana but has not acted in the same manner when referring to gambling.

This might be a great time for Colorado to ease their way into sports betting. The hold that the coronavirus has placed on sports around the country will allow these casinos the appropriate time to fix any issues and get their licenses.

It makes sense for a state with many professional teams with a rich culture to make this move. The Denver Broncos, Colorado Rockies, Denver Nuggets, and Colorado Avalanche will all bring in a large portion of the state’s wagers.

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