Revenues from sports betting operations in Colorado will simply not be enough to help fund the state’s water plans. According to a memo released by the state’s Joint Budget Committee sports betting revenues in Colorado will fall short of the projections.
The memo says that the sports betting operations in the state could bring in only a fraction of what the state had expected and therefore it would be below the mark set to fund the state’s water plan with additional revenue.
According to Colorado’s Division of Gaming the sports betting operations in the state could chip in between $1.5 million and $1.7 million in the Fiscal Year 2020-21, reports Colorado Sun.
The proponents of sports betting legalization in the state had earlier said that the state would be benefitting from significant additional tax revenue.
It was projected that the state would gross enough to provide funds for the state’s water plan which needs about $3 billion. However, to fund the water plans the sports betting operations had to generate about $2 million in startup costs in 2019-20 and then about $2.8 million in administrative expenses in 2020-21. The funds generated on top of those would be then channeled towards the state’s water plans.
The state’s sportsbooks are also to provide $130,000 to promote responsible gambling and for gambling addiction treatment services.
“The Department’s internal revenue expectations are much lower than fiscal note estimates,” the memo said. “A common theme among states was that revenue generation was not as substantial or as sudden as initially estimated.”
Earlier in November Colorado legalized sports gambling. At present, there are 20 US states that have legalized sports gambling. With the governor’s signature on the sports betting and online gambling legalization bill on Friday this week, Michigan became the 20th US state to legalize sports gambling.