Colorado Says Yes To Sports Betting
November 11, 2019
So divided were those resident in the US state of Colorado on the issue of legalised sports betting, that the results of a ballot were too close to call until such time as what all votes cast by those living in the surrounding rural areas had been tallied as well. But all’s well that ends well and thanks to those voters in support of a legalised sports betting market having had their say at the ballot boxes, all 33 of the state’s land-based casinos are now permitted to accept on-location as well as online wagers on sports events.
Those opting in on offering sports betting services will be taxed at a rate of 10% on profits made. The initial plan is to use the bulk of the generated taxes for the purpose of funding and supporting Colorado’s various water conservation projects.
A Win Is A Win
But despite the fact that the outcome had indeed been a close call; with the total tally of votes in the affirmative only having outnumbered those opposed to legalisation by some 1.5%; a win is a win after all.
The marginal victory was apparently not an actual indication of voters being largely opposed to the idea of a legalised sports betting market, but instead the result of the confusing language used by local state tax governing body TABOR with regards to information offered to voters. Voters were informed that there would be a tax change and rate increase, but not specifically how that increase would be generated. This created the misconception that by voting in favour of a legalised sports betting market, taxpayers would essentially be required to fork out more in taxes overall.
Voting On Taxes
Even so, the confusing situation was somewhat clarified and resolved resulting in many then having been able to relax and vote in favour of betting on single sports events. The general attitude towards legalisation was already made perfectly clear last year when in May the bipartisan law literally blasted through the state and was formulated and ready to be signed within a matter of weeks.
The reason for the final say having had to go to local residents is the fact that Colorado law dictates that any change in legislation involving a change in tax rates must be put to the vote among the people first. Had it not been for the confusing wording with regards to the introduction of the new law, the win-margin would have in all likelihood been much bigger.
Massive Tax Injection
Colorado has officially become the 6th state to legalise sports betting so far in 2019, with many more expected to follow its example over the course of the next 12 months. Other states to have gone ahead and legalised the activity during 2019 are North Carolina, Tennessee, New Hampshire, Montana and also Illinois. Tennessee is somewhat the exception to the general rule when considering the mentioned states, as only online betting has been legalised in this particular region.
Thanks to the yes vote, it is now estimated that the local market will generate some $11 million in taxes annually during the 2020 financial year. This money will make a significant difference to the success of local water conservation operations and many other projects too. Thus once again proving just how useful this revenue stream can be, especially when activities are monitored and regulated properly.
Behold The Machine
The sports betting industry is one of the fastest-growing industries in the US today. Sports betting is considered nothing short of a money-making machine and the industry is bound to grow even more rapidly once more states have hopped on board.