Fees to operate a legal sports betting business in Colorado differ depending if you intend to run a retail or online operation. Effective July 2020, an Internet Sports Betting Operator license costs $77,000. To obtain a license for a retail sportsbook, the license fee is $17,900.
Colorado’s tax rate is 10% of gross gaming revenue (GGR), which means 10 cents of every dollar made by casinos and sportsbooks goes into state coffers.
According to Colorado gaming regulations, the first $130,000 in sports betting tax revenue collected is set aside by the state to pay for gambling addiction services.
Six percent of the tax, up to a $1.7 million maximum, is put into a hold harmless fund, which is meant to compensate casino or other gambling companies who experience financial losses that are provably linked to sports betting.
The balance of tax revenue, 66% for fiscal year 2020-2021, goes to fund Colorado’s state water plan, which aims to conserve and preserve water in the state to support its growing population.
You can see above in our revenue page for a full month-by-month breakdown.
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