title: Colorado — Tax: What is the tax take? | advennt.io canonical: https://advennt.io/jurisdictions/colorado/taxes/ [Jurisdictions](https://advennt.io/jurisdictions/) [Colorado](https://advennt.io/jurisdictions/colorado/) Tax Colorado · Question 05 of 11 # Tax: What is the tax take? Favourable · Confirmed · AI-generated · [Back to full Colorado report →](https://advennt.io/jurisdictions/colorado/) 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… ## Full section analysis 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.