Colorado's HB 1311: A Closer Look at Sports Betting Taxation
Delaying Taxation on Promotional Bets in Colorado until the 2026 Legislative Session
Let's dive into the nitty-gritty of HB 1311, a bill that's stirring up some buzz in Colorado's sports betting scene. This bad boy, if it becomes law, will start taxing online sportsbooks on promo bets, kicking off in 2026.
Senate amendments, however, need to get the thumbs-up from the House before it's a done deal. Think of it as a legislative ping-pong match - it's all in good fun, but nobody wants the ball to drop!
Now, you might think this could mean a flat tax hike, right? Well, not so fast. HB 1311 is more like a crafty alternative, promising a different approach to taxation.
Michael Savio, the man behind the scenes of the US online casino industry, sheds light on this intriguing subject. From retail insider to online maestro, Michael keeps us in-the-know on anything casino-related, including reviews, news, and more. Check out his latest findings at casinos.com - trust us, it's a goldmine!
A peek at the current status of HB 1311:
HB 1311, a bill aiming to axe deductions for promo bets in the Colorado sports betting game, has already made its way through the Colorado Senate with a vote of 28-7. The bill is set to block licensed operators from deducting free bets from their taxable sports betting revenue, effective July 1, 2026. The initial plan was for the bill to go live on September 1, 2025, but lawmakers have stepped in to give operators a bit more time to adapt. The bill is now heading back to the House for further consideration.
How does this impact the US online casino industry?
- Revenue Impact: Eliminating promotional bet deductions could mean operators face higher taxable revenues. This, in turn, could lead to increased costs for operators and potentially higher prices for consumers, or perhaps fewer promotions.
- Revenue Boost: Colorado anticipates a substantial revenue boost thanks to the elimination of promotional bet deductions. This model could pave the way for other states to jump on the bandwagon seeking similar tax revenue boosts.
- Industry Trend: Tighter regulation and more aggressive taxation of online gaming promotions could influence other states to follow suit, potentially leading to industry-wide changes in taxation across the US.
- Conservation and State Funds: A chunk of the generated revenue will support the Water Plan Implementation Cash Fund in Colorado, showcasing how sports betting revenue can contribute to state-oriented initiatives.
What's next for HB 1311 and the broader US online casino industry?
Once HB 1311 is implemented, we can expect other states to take a closer look at their own tax structures for online sports betting and casinos. As more states consider similar measures, the industry may face increased regulatory scrutiny and operational cost changes. However, the exact impact on the broader US online casino industry will depend on how other states decide to regulate promotional bets in their respective territories. Keep your eyes peeled for updates!
- The Colorado Senate has passed HB 1311, which aims to alter the taxation of online sportsbooks, particularly regarding promotional bets, with a vote of 28-7.
- The bill, if made law, will block licensed operators in Colorado from deducting free bets from their taxable sports betting revenue, starting July 1, 2026, contrary to the initial plan of September 1, 2025.
- Michael Savio, a prominent figure in the US online casino industry, discusses the implications of HB 1311, offering insights on its potential effects on the industry.
- The implementation of HB 1311 could influence other states to reconsider their approaches to taxing online sports betting and casinos, leading to potential industry-wide changes in taxation across the US.
- A significant portion of the revenue generated from HB 1311 will be allocated to the Water Plan Implementation Cash Fund in Colorado, demonstrating the potential for sports betting revenue to support state-oriented initiatives.
