A new memo suggests Colorado is worried about sports betting revenue. The Colorado State Joint Budgeting committee has been throwing around numbers in the last days of 2019. Sports betting is up and running in Colorado, and the year 2020 will be the first full year that sports betting is legal in Colorado. Now Colorado officials are fearful that what they projected as revenue slated for the water plan, may not come to fruition. Naysayers is what the budgeting committee is being called, ‘It’s way too early to say what kind of revenue the state will see, says a source.
The first numbers projected was by the ‘Division of Gaming, earlier this year they made their predictions. They predicted that the revenue from sports betting would bring in $1.5 million, and $1.7 million for the fiscal year of 2020 to 2021. The first full fiscal year for sports betting in Colorado will start in July of 2020.
The ‘Colorado Sun’ First Reported The Estimates On Friday For The Next Two Years
A big issue that allowed sports betting to become up and running in Colorado was the state’s dire need to fund the water plan. The overall figure the water plan must raise is a whopping $3 billion dollars. However, even before that sum, there have been substantial start-up costs totaling in excess of $2 million. That amount is just the bill for 2019 into 2020. There is another $2.8 million that will become due in 2021. State officials said in months prior that those funds had to be raised before any sports betting revenues can be transferred into the fund that is earmarked for the water plan.
Officials said the $2.8 millions is just for the administrative costs attached to the water plan. There is another issue that sports betting platform providers have not been thrilled about. The sports betting bill that passed the Colorado Legislature, had a provision in it. There has to be a fund set up to pay for gambling addiction services and programs. The bill for this is $130,000 for year one of sports betting. The amount will increase each year, the bill for this is split among all sports betting platform providers.
The Budget Committee Has Raised Concerns About Being Reimbursed For Start Up Fees
The Colorado Joint Budget Committee said last week that they are fearful that the money that the state put out to launch sports betting could be lost. The committee said it could be very close as far as there being enough revenue that the sports betting is taxed. There is substantial outlay of money that was used to launch sports betting in the state. However several proponents that worked diligently on the sports betting bill, said it’s just too early to say one way or the other.
Colorado voters went to the polls in November 2019 to very narrowly pass the sports betting bill. Advocates for sports betting say that once all issues are ironed out, and sports betting is in full swing, raising enough revenue will not be an issue.