House Bill 25-1311 Introduced

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.

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)(B), and (7)(c)(I)(C); repeal (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 August 31,

• Page 2, Line 72025, when determining the free bets deduction used for calculating "net

• Page 2, Line 8sports betting proceeds" each month, as described in subsection (7)(a) of

• Page 2, Line 9this section, a sports betting operator or internet sports betting operator

• Page 2, Line 10shall include 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 11(B)  On and after July 1, 2024, through June 30, 2025, no more

• Page 2, Line 12than two and one-fourth percent of the total amount of all bets placed by

• Page 2, Line 13players with that sports betting operator or internet sports betting operator each month; and

• Page 2, Line 14(C)  On and after July 1, 2025, through June 30, 2026 August 31,

• Page 2, Line 152025, no more than two percent of the total amount of all bets placed by

• Page 2, Line 16players with that sports betting operator or internet sports betting operator each month. and

• Page 2, Line 17(D)  On and after July 1, 2026, no more than one and

• Page 2, Line 18three-quarters percent of the total amount of all bets placed by players

• Page 2, Line 19with that sports betting operator or internet sports betting operator each

• Page 2, Line 20month.

• Page 3, Line 1(I.5)  On and after September 1, 2025, a sports betting

• Page 3, Line 2operator or internet sports betting operator shall not deduct

• Page 3, Line 3any free bets placed by players with the sports betting operator or internet sports betting operator.

• Page 3, Line 4SECTION 2.  Act subject to petition - effective date. This act

• Page 3, Line 5takes effect at 12:01 a.m. on the day following the expiration of the

• Page 3, Line 6ninety-day period after final adjournment of the general assembly; except

• Page 3, Line 7that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 3, Line 8of the state constitution against this act or an item, section, or part of this

• Page 3, Line 9act within such period, then the act, item, section, or part will not take

• Page 3, Line 10effect unless approved by the people at the general election to be held in

• Page 3, Line 11November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.