Colorado Sports Betting Bill Approved by Senate, Heads to Governor to Come into Law

The proposal which okays the idea of legalizing sports betting in Colorado received approval in the Senate. The bill went to Governor Jared Polis’ office and his signature is required so that it can turn into law. HB19-1327 was initially introduced on April 18th…

…and ed through the state’s legislative process on May 3rd. Six representatives in the House voted against it, while 58 backed the bill which allows sports wagering regulation. There is still no specific information on the exact license fee, but the bill does define revenue details.

Applications for Three Different Types of Certificates

If the bill receives the Governor’s signature, operators would be able to apply for one of three types of licenses. All land-based venues in the state will be required to gain a master license to operate sports betting. The certifications will be valid for two years and will give suppliers approval to partner up with…

…facilities holding either of the remaining two types of certificates. Those include sports betting operator and internet sports betting operator licenses. This means that holders of the master license will have permission to strike the deals with one holder of the sports wagering certificate (including land-based in Colorado) and one internet operator licensee.

Precise Details on Revenue

Thought the exact amount of the fee is still not precisely defined in the bill, there are certain hints which implicate that the sum should not go beyond $125,000 (£95,480/€111,640). This sum should cover the Commission’s costs of processing each application and conducting background checks. However, it does clarify that the revenue…

…generated from taxing legal sports betting would be deposited in the Sports Betting Fund. This should pay off any money owed to the State General Fund to cover the Commission’s start-up expenses and cover its operating costs as well. Besides this…

…the Hold Harmless Fund will receive further 6%. The money will be used to mitigate the loss of revenue incurred by colleges, cities, counties or horse racing entities as a result of regular wagering.

Focus on Gambling-Related Issues

A certain part of the revenue generated from this activity will go to the Office of Behavioral Health in the Colorado Department of Human Services. The precise sum is $130,000 and the Office will use the funds to prevent and treat…

…problems caused by gambling. Besides this, the Colorado Water Plan Implementation Cash Fund will also receive some funds. The fact that all the states which okayed the idea of legislation of sports or mobile wagering pay special attention to players’ protection certainly gives a good example to countries that are still considering such proposals.

Source:

“Colorado sports betting bill heads to Governor after Senate approval”, igamingbusiness.com, May 7, 2019.