2 weeks Ago By Elise Schmelzer
Proposition JJ on Colorado’s ballot asks voters to decide whether the state should continue returning excess sports betting tax revenue to casinos — or keep the money to spend on water projects. Colorado voters in 2019 and in the state’s three gaming towns — Cripple Creek, Black Hawk and Central City. The authorization allowed the state to keep up to $29 million in tax revenue from gambling each year but mandated that it return any tax proceeds above that cap to casinos and sports-betting operators.
Tax revenue surpassed $29 million in the state’s 2023-2024 budget year and is projected to increase in coming years, according to . Colorado lawmakers placed Prop. JJ on the ballot.
Since it proposes a change to state law, it needs a simple majority to pass. Under the measure, all tax money collected from sports betting would be retained by the state and used for water projects. Passing Prop.
JJ would not impact individuals’ taxes or tax refunds under Colorado’s Taxpayer’s Bill of Rights. Sports betting net revenue — which is profit after paying federal taxes and winning bets — is taxed by the state at 10%. The state in budget year 2023-2024 collected $29.
9 million in sports betting taxes. Under current law, it must return any amount over the $29 million cap to gambling operators. If Prop.
JJ passes, that cap would go away. Tax revenue from sports betting is estimated to be $30.2 million in budget year 2024-2025 and $31.
5 million the following year, according to the Blue Book. The passage of Prop. JJ would yield an extra $3.
7 million for water projects in those years. The money would pay for water projects outlined in the , such as increasing water storage capacity and drought planning. The distributes money for water projects.
Last year, it funded projects to improve water infrastructure and improve the efficiency of water use in homes and in agriculture. span political parties, industries and Colorado’s urban and rural communities. Supporters include the Colorado Cattlemen’s Association, Conservation Colorado, Business for Water Stewardship, and Democratic and Republican lawmakers from major cities and rural Colorado.
“Voting Yes on JJ will enhance our water resources, providing the necessary resources to safeguard our water for future generations,” Erin Karney, executive vice president of the Colorado Cattlemen’s Association, said in a news release. “It’s an investment in the long-term sustainability of our ranching heritage and a commitment to the communities that depend on it.” The organization representing casinos and sports-betting operators in Colorado does not object to the amendment, Colorado Gaming Association executive director Peggi O’Keefe wrote in an email.
No organizations have come out in opposition to Prop. JJ. One argument against the proposition, as outlined in the Blue Book, is that “if the state refers a ballot question with a limited amount of new taxes” — as happened in 2019 — “it should stay within that limit.
”.
