Colorado imposes a 10% tax on net sports betting proceeds (handle minus winnings, free bets as limited, and the 0.25% federal excise tax). HB 25-1311 (signed 15 May 2025) phases out free/promotional-bet deductibility — 2% of handle Jul-Dec 2025, 1% Jan-Jun 2026, full removal from 1 July 2026 — raising the effective rate without changing the 10% headline. Proposition JJ (2024) removed the prior $29m retention cap. Revenue is earmarked principally for the Water Plan Implementation Cash Fund, plus the Hold Harmless Fund and gambling-addiction services.
Jurisdictions › Colorado › Tax
Colorado · Question 05 of 11
Tax: What is the tax take?
Favourable · Confirmed · AI-generated · Back to full Colorado report →
Key section parameters
| Jurisdiction | Colorado (US-CO) |
|---|---|
| Regulator | Recorded in register |
| Favourability | Favourable |
| Confidence | Confirmed |
| Review status | AI-generated |
| Last collected | 18 Oct 2026 |
Summary answer
Colorado imposes a 10% tax on net sports betting proceeds (handle minus winnings, free bets as limited, and the 0.25% federal excise tax). HB 25-1311 (signed 15 May 2025) phases out free/promotional-bet deductibility — 2% of handle Jul-Dec 2025, 1% Jan-Jun 2026, full removal from 1 July 2026 — raisi…