Who regulates sports betting in Colorado?

It has been five years since online sports betting became legal in Colorado. In that time, sports betting has generated millions of dollars in tax revenue, while becoming a regulatory priority for the state government.

History of sports betting

Colorado’s journey towards legalized online sports betting began at the federal level in 2018 when the Supreme Court struck down a law that banned sports betting in most states. Following the decision, Colorado’s Legislative Council staff published an issue brief exploring the impact of legalized sports betting in Colorado, including estimates for the tax revenue betting could bring to the state. In 2019, the Colorado General Assembly passed a bill outlining the regulatory and taxing structure for online sports betting, which was approved by voters later that year. Regulated sports betting began on May 1, 2020.

The General Assembly charged the existing Colorado Limited Gaming Control Commission and the Colorado Division of Gaming with creating the rules for sports betting in the state. A 2022 audit report on sports betting describes how the regulations were folded into existing limited gaming regulations and outlines the Commission and Division’s responsibilities. These include issuing sports betting licenses, investigating complaints, and deciding which sporting events can be bet on and what types of bets are allowed.

How much money are people spending on sports betting?

Sports betting quickly became a major fixture in Colorado, with online and in-person sportsbooks handling hundreds of millions of dollars each year. Monthly sports betting proceeds reports published by the Division of Gaming provide breakdowns of the amount of money the public spends on wagers, the payouts by sportsbooks, and how much money is being bet on each sport. From the October 2025 report, people wagered over $680 million in bets on various sports and sportsbooks paid out $618 million. Net proceeds from sports betting was around $47 million. The most popular sports to bet on vary by season and are typically major professional sports like football, basketball, and baseball, although table tennis is usually high on list as well. Colorado limits the types of bets that can be placed on college sports.

How are sports betting revenues taxed and used?

There is a lot of money being spent on sports betting, but how does this benefit Colorado? The state places a 10% tax on all net sports betting proceeds, which can be more complicated than it sounds. The formula that the state uses to find those number is described in a helpful handout published by the Division of Gaming. Tax revenues from sports betting are reported monthly.

In fiscal year 2025, tax revenue from sports betting totaled nearly $37 million – a significant amount, although it represents less than 1% of the state’s total revenue. This money is used to cover staff costs of regulating the sports betting industry, to establish a hold harmless fund to make payments to institutions that have lost revenue due to online sports betting, and to pay for a crisis hotline for gamblers operated by the Office of Behavioral Health. The remainder of the tax revenue supports the Water Plan Grant Program, which funds water conservation projects throughout the state.  

Information about responsible gambling practices can be found through BetSmart Colorado.