Proposition DD is one of two state-wide measures appearing on the 2019 ballot. It asks voters to legalize sports betting in Colorado to fund water projects. It would also put a 10 percent tax on casino’s house winnings which would contribute to projects identified in Colorado’s Water Plan.
Proposition DD, (House Bill 1327) would authorize the legislature to authorize sports betting and create a 10% tax on sports betting proceeds to be levied on those who conduct sports betting operations. This measure requires voter approval under the Taxpayer’s Bill of Rights (TABOR) since it proposes to implement a new tax. According to the fiscal impact statement for the measure, revenue from the 10% tax on sports betting proceeds is expected to generate revenue for the state of around $10 million for Fiscal Year (FY) 2020-21 and is expected to grow to between $13.5 to $15.2 million for FY 2021-22. Revenue generated from the tax on sports betting would be used to create and fund the Water Plan Implementation Cash Fund and would also fund expenses related to the administration and regulation of sports betting in Colorado.