ColoradoDeductions for Net Sports Betting Proceeds
What it does
As approved by voters in 2019, a tax of 10% is imposed on net sports betting proceeds. For the purpose of calculating its net sports betting proceeds, a sports betting operator or internet sports betting operator (sports betting operator) has been allowed to deduct all payments to players, all federal excise taxes paid, and a certain percentage of free bets placed by players as follows:
More detail
Between July 1, 2025, and June 30, 2026, no more than 2% of total free bets placed each month; and On and after July 1, 2026, no more than 1.75% of total free bets placed each month.
The act alters the percentage of free bets that a sports betting operator is allowed to deduct so that:
Between July 1, 2025, and December 31, 2025, no more than 2% of total free bets placed each month may be deducted; and Between January 1, 2026, and June 30, 2026, no more than 1% of total free bets placed each month may be deducted.
Beginning on July 1, 2026, the act removes the deduction for all free bets placed.
For the 2025-2026 state fiscal year, $17,135 is appropriated from the sports betting fund to the department of revenue for personal services and tax administration IT system support. (Note: This summary applies to this bill as enacted.)
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 15Governor Jared Polis SignedBecame Law
- May 12Signed by the Speaker of the House
- May 12Signed by the President of the Senate
- May 12Sent to the GovernorTo Governor
- May 7House Considered Senate Amendments - Result was to Concur - Repass
- Vote recorded REPASS. Result: pass.Lower
- Vote recorded CONCUR. Result: pass.Lower
- May 6Senate Third Reading Passed - No AmendmentsPassed Senate
- Vote recorded BILL. Result: pass.Upper
- May 6House Considered Senate Amendments - Result was to Laid Over Daily
- May 5Senate Third Reading Laid Over Daily - No Amendments
- May 2Senate Committee on Appropriations Refer Unamended to Senate Committee of the WholeMinor
- May 2Senate Second Reading Special Order - Passed with Amendments - Committee
- May 1Senate Committee on Finance Refer Amended to AppropriationsMinor
- Apr 29Introduced In Senate - Assigned to FinanceMinor
- Apr 28House Third Reading Passed - No AmendmentsPassed House
- Vote recorded BILL. Result: pass.Lower
- Apr 25House Committee on Appropriations Refer Amended to House Committee of the WholeMinor
- Apr 25House Second Reading Special Order - Passed with Amendments - Committee
- Apr 21House Committee on Finance Refer Amended to AppropriationsMinor
- Mar 28Introduced In House - Assigned to FinanceIntroduced