Colorado's Tax Benefit from Regulating Online Casino
$5,000 Welcome Bonus
Colorado is the first state to phase out tax deductions for promotions for sports betting providers. Colorado sports gambling is allowed in the state but online gambling isn't. The combination of such provision and a 10% tax rate has produced little tax receipts.
Colorado's gambling income exceeded $1.23 billion in 2021. Colorado is the 15th largest commercial gaming market in the United States. Black Hawk and Central City casinos earned $812 million last year. Proposition DD was narrowly adopted by Colorado voters in November 2019. Online slot income in New Jersey increased 27.8% year over year to $134.6 million in April.
Colorado House Bill 22-1402 would limit the amount of free play credits that sportsbook operators can deduct from their taxable revenue. The bill is designed to boost tax revenue for the state. Colorado legalized pari-mutuel betting, daily fantasy sports, and online sports betting in 2016. Online casino gaming is not permitted in Colorado. It is legal in some social casinos. There is a lottery. Internet lottery sales are not allowed in the State. A sports gambling statute was introduced in 2019 and ratified by state voters in November.
