Colorado voters have voted in favor of sports betting legalization. It is now the 19th US state to legalize sports betting operations after the US supreme court allowed for the legalization of sports gambling in the country.
With the voting results in favor of the draft bill which calls for legalizing sports betting in the state, Colorado will legalize both mobile sports betting and land-based retail sportsbooks.
The new sports betting regulations are expected to come into effect by May 2020.
According to the voted sports betting bill, casino winnings will now be taxed at 10 percent and the majority of the revenue would go towards the state water plan.
While there are 6 million residents, it was a neck to neck vote as those who voted ‘Yes’ had a narrow 22,000-ballot lead.
US sports betting market is consistently expanding. According to investment firm Morgan Stanley, the U.S market will generate almost $7 billion in revenue by 2025, up from $833 million this year. Last year it had estimated $5 billion as the size for the coming five years.
Morgan Stanley says that sports betting in the US could generate $15 billion in revenue by 2025 given all states legalize sports gambling by then. In the worst-case scenario and with only 22 states launching legalized sports betting, the industry is expected to generate $2.5 billion.