Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that prohibits sports betting operators from deducting free bets from their proceeds to save money on their taxes in Colorado.

Highlights:

• Rescinds the deduction for all free bets placed beginning July 1, 2026 (Sec. 1-2).

• Amends the current percentage of free bets allowed to be deducted as follows (Sec. 1-2):

• Between July 1, 2025, and December 31, 2025, no more than 2% of total free bets placed each month; and

• Between January 1, 2026, and June 30, 2026, no more than 1% of total free bets placed each month.

• Repeals the deduction for all free bets placed and approrpriates for the 2025-2026 state fiscal year, $17,135 is appropriated from the sports betting fund to the department of revenue for personal services and tax administration IT system support (Sec. 1-2).

• Specifies that the provisions of this bill shall take effect 90 days after the final adjournment date of the current legislative session (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that prohibits sports betting operators from deducting free bets from their proceeds to save money on their taxes in Colorado.

Highlights:

• Rescinds the deduction for all free bets placed beginning July 1, 2026 (Sec. 1-2).

• Amends the current percentage of free bets allowed to be deducted as follows (Sec. 1-2):

• Between July 1, 2025, and December 31, 2025, no more than 2% of total free bets placed each month; and

• Between January 1, 2026, and June 30, 2026, no more than 1% of total free bets placed each month.

• Repeals the deduction for all free bets placed and approrpriates for the 2025-2026 state fiscal year, $17,135 is appropriated from the sports betting fund to the department of revenue for personal services and tax administration IT system support (Sec. 1-2).

• Specifies that the provisions of this bill shall take effect 90 days after the final adjournment date of the current legislative session (Sec. 3).

Full Bill Text