A Bill for an Act
Page 1, Line 101Concerning the deduction for free bets allowed for the
Page 1, Line 102purpose of calculating net sports betting proceeds,
Page 1, Line 103and, in connection therewith, making an appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
As approved by voters in 2019, a tax of 10% is imposed on net sports betting proceeds. Under current law, for the purpose of calculating its net sports betting proceeds, a sports betting operator or internet sports betting operator is allowed to deduct all payments to players, all federal excise taxes paid, and a certain percentage of free bets placed by players. Beginning on September 1, 2025, the bill removes the deduction for all free bets placed.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 44-30-1501, amend
Page 2, Line 3(7)(c)(I) introductory portion, (7)(c)(I)(C), and (7)(c)(I)(D); and add (7)(c)(I.5) as follows:
Page 2, Line 444-30-1501. Definitions - rules. Definitions applicable to this part
Page 2, Line 515 also appear in section 44-30-103 and article 1 of this title 44. As used in this part 15, unless the context otherwise requires:
Page 2, Line 6(7) (c) (I) On and after January 1, 2023, through June 30, 2026,
Page 2, Line 7when determining the free bets deduction used for calculating "net sports
Page 2, Line 8betting proceeds" each month, as described in subsection (7)(a) of this
Page 2, Line 9section, a sports betting operator or internet sports betting operator shall
Page 2, Line 10include only a portion of the total free bets placed by players with the sports betting operator or internet sports betting operator, as follows:
Page 2, Line 12(C) On and after July 1, 2025, through
June 30, 2026Page 2, Line 1331, 2025, no more than two percent of the total amount of all bets placed
Page 2, Line 14by players with that sports betting operator or internet sports betting operator each month; and
Page 2, Line 15(D) On and after
July 1, 2026Page 2, Line 1630, 2026, no more than one
and three-quartersPage 2, Line 17of all bets placed by players with that sports betting operator or internet sports betting operator each month.
Page 2, Line 18(I.5) On and after July 1, 2026, a sports betting operator
Page 2, Line 19or internet sports betting operator shall not deduct any free
Page 2, Line 20bets placed by players with the sports betting operator or internet sports betting operator.
Page 3, Line 1SECTION 2. Appropriation. (1) For the 2025-26 state fiscal
Page 3, Line 2year, $17,135 is appropriated to the department of revenue. This
Page 3, Line 3appropriation is from the sports betting fund created in section
Page 3, Line 444-30-1509 (1)(a), C.R.S. To implement this act, the department may use this appropriation as follows:
Page 3, Line 5(a) $13,906 for tax administration IT system (GenTax) support;
Page 3, Line 6(b) $1,024 for use by the taxation business group for personal services related to taxation services; and
Page 3, Line 7(c) $2,205 for use by the executive director's office for personal services related to administration and support.
Page 3, Line 8SECTION 3. Act subject to petition - effective date. This act
Page 3, Line 9takes effect at 12:01 a.m. on the day following the expiration of the
Page 3, Line 10ninety-day period after final adjournment of the general assembly; except
Page 3, Line 11that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 3, Line 12of the state constitution against this act or an item, section, or part of this
Page 3, Line 13act within such period, then the act, item, section, or part will not take
Page 3, Line 14effect unless approved by the people at the general election to be held in
Page 3, Line 15November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.