Colorado voters have overwhelmingly approved Proposition JJ, a new measure that allows the state to keep all revenue collected from sports betting taxes and allocate it directly to water-related projects. The ballot measure, which passed with approximately 76% support as of Wednesday afternoon, removes the previous $29 million cap on the tax revenue Colorado could retain.
Since sports betting was legalized in 2019 under Proposition DD, Colorado has imposed a 10% tax on sportsbook revenues. While the tax has generated close to $80 million since 2020, any revenue beyond the $29 million threshold had previously been returned to sports betting operators.
Proposition JJ’s passage ends this cap, enabling the state to use the entirety of the tax revenue toward a range of water projects.
“This is an exciting and important day for Colorado’s water future,” said State Senator Dylan Roberts, who co-sponsored the bill that led to Proposition JJ. “I am very grateful that the voters of Colorado have agreed that we need to continue to invest as much as we can into this important endeavor.”
With sports betting revenue trending upward, projections estimate the surplus would have reached $1.2 million in 2024-25 and $2.5 million the following year without Proposition JJ. The removal of the cap means that every dollar collected will now directly support water projects aimed at enhancing water storage, protecting fish habitats, and addressing conservation needs across Colorado.
The newly available funds come at a critical time for Colorado’s water conservation agencies. The Colorado Water Conservation Board has projected a need for approximately $3.85 billion in grants and loans over the next 30 years to support water projects, but current funding sources leave the state about $1.5 billion short of that target.
This additional funding gives more flexibility to meet pressing water needs, though it won’t cover everything, said Cole Bedford, Chief Operating Officer at the Colorado Water Conservation Board. The board’s current grant program is highly competitive, often leaving worthy projects without the necessary funding.
Major water providers across the state, including Denver Water and Parker Water and Sanitation District on the Front Range, and the Colorado River Water Conservation District on the Western Slope, have praised the measure’s passage.
For many regions, the additional funding from Proposition JJ could mean the difference between moving forward with urgent water projects or experiencing further delays. In southwestern Colorado, organizations have identified several projects that are ready to be implemented with adequate funding, said Steve Wolff, General Manager of the Southwestern Water Conservation District.
In the Arkansas River Basin, the funds could address financial gaps for projects like the Arkansas Valley Conduit, a $1.4 billion initiative to provide drinking water to dozens of communities east of Pueblo.
The growing demand for sports betting, especially during high-interest periods like the football season, has driven revenue spikes in Colorado’s sports betting market. In September 2024 alone, sportsbooks reported $563 million in wagers, with nearly two-thirds of those bets placed on football and parlays, reflecting a 10% increase over the previous year.
Original article: https://www.yogonet.com/international/noticias/2024/11/07/84544-colorado-greenlights-full-retention-of-sports-betting-tax-revenue-for-water-initiatives
