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The Senate approved H 1327, a sports betting bill referring to matter to the fall ballot on a 27-8 vote. The House must still concur to the Senate’s one amendment that creates a hold-harmless fund for potentially affected casinos and towns.
The votes could wrap a whirlwind two-week trip through the state legislature for the CO sports betting bill.
Legal Sports Report offered the initial review of the Colorado sports betting bill last month. If the bill is signed and voters back it, sports betting in Colorado could be targeted for a 2020 launch.
Statewide mobile wagering would be possible under the terms of the legislation.
History of Sports Betting Legislation in Colorado
Colorado's path towards legal sports betting traces back to prior legislative sessions. Past bills often faced hurdles from political opposition and public skepticism.
Since the federal ban on sports betting was lifted in 2018, momentum has grown in the state. Historically, proposals struggled to pass due to concerns about gambling expansion. However, shifting public perceptions and potential economic benefits have propelled recent efforts forward, culminating in this latest bill reaching the ballot for voter consideration.
Colorado sports betting needs more backing
Introduced near the end of the legislative session, H 1327 works within the realities of Colorado’s political landscape. The Centennial State operates under a voter-approved Taxpayer Bill of Rights (TABOR), a device that requires tax increases to receive popular backing.
Colorado’s attorney general said last year that voter approval is not required to create sports betting:
“While Article XVIII, Section 2 imposes various restrictions on “lotteries,” commercial sports betting does not qualify as a lottery. The Colorado Supreme Court has ruled that betting on horse and dog races is not a lottery, and there is no material difference between betting on horse and dog races and betting on other types of sporting events. Commercial sports betting therefore falls outside the restrictions in Article XVIII, Section 2.”
Legislators still chose the more cautious path of sending Colorado sports betting expansion to the ballot.
“I think it’s important to go back to the voters and make sure it’s something that they want,” said Rep. Cole Wist last year.
Impact of Voter Approval on Colorado Sports Betting
Should voters approve the measure, it could significantly boost the state's economy. Expected benefits include job creation in the gaming and hospitality sectors.
Additionally, community programs funded by tax revenue may receive much-needed support. Voter sentiment on this issue will likely shape future legislative approaches to gaming in Colorado.
Deeper in the bill
The legislation would allow for three types of licenses:
- Master license
- Sports betting operator
- Internet sports betting operator
The proposed legislation outlines a clear framework for regulating sports betting. Revenue generated, primarily from the 10% tax rate, is earmarked for Colorado's water projects.
State gaming regulators will oversee the process to ensure compliance and fair play. These measures aim to safeguard consumers while promoting transparency in the new betting industry.
Colorado’s 33 casinos could each submit an application for a master license. What that two-year license for legal sports betting would cost remains to be determined.
Each casino could partner with a land-based operator and an internet operator (or use the same partner for both) and deploy one online/mobile platform.
The proposed tax rate of 10 percent falls on the more industry-friendly side of legislation introduced this year. Only esports betting sites and high school sports would be banned under the bill.
Colorado gaming is restricted to three remote mountain towns: Black Hawk, Central City, and Cripple Creek. The state historically opposes gaming expansion despite a somewhat liberal bent on other issues like marijuana legalization.
The post Rocky Mountain Aye: Colorado Sports Betting Bill Approved By Senate appeared first on Legal Sports Report.
Original source: https://www.legalsportsreport.com/31901/colorado-sports-betting-passes-senate/
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