New Bill Passed Joining Colorado to Gaming CommunityLegal
Colorado is cruising the state in an optimistic path, two months ahead of schedule to enable sports betting legal as soon as this week. The bill HB19-1327, if passed, will have the following conditions.
- Sports betting will be regulated by the Department of Revenue.
- Persons or entities currently licensed to conduct limited gaming (i.e. the owners of casinos in Central City, Black Hawk, and Cripple Creek) are the only persons of entities eligible to hold a ‘master license’ to conduct sports betting. A master license entitles the licensee to contract with a licensed ‘sports betting operator’ or a licensed internet sports betting operator,’ or both, for the operation of sports betting.
- The state will collect a tax of ten percent on the net proceeds of sports betting activity to fund implementation of the state water plan and other public purposes. Of the total amount of tax collected, after first repaying the general fund appropriation for start-up and initial operating costs, six percent is set aside annually to compensate the beneficiaries of revenues generated by limited gaming and other wagering activities for any losses attributable to competition from sports betting.
The bill was drawn together to give consumer protection as well as maximizing state revenue.
Seven Colorado casinos applied for master licenses which are scheduled to be approved at the Thursday meeting with the Limited Gaming Control Commission on Thursday, February 20, 2020.
A master license initiates the process before the first bets can be placed on the first of May. Once this bill is passed, casinos will be permitted to open online sports books as well as contract companies running digital sports books.
Proposition DD was the birth of expanded gambling in November 2019, allowing betting on professional sports. Ron Shell, VP of customer and insights stated, “It’s probably as big as it gets for us. The most obvious reason is we have access to Colorado and offer our best-in-class product to a big state. On top of that, it allows us to push forward with our strategy of becoming the local great sportsbook in Colorado.”
Reactions From Casino Operators
The co-owner of Dostal Alley, Buddy Schmalz, is currently searching for a partner for the application aspect for the transition. “My guess is it’s really tough given the time frame and whoever we partner up with,” Schmalz stated.
Double Eagle, a well known entity in Colorado, partnered with the Australian digital betting platform PointsBet. The collaboration was put in place to initiate retail and digital sports books. Cripple Creek is also expected to have a full sports bar with top-of-the-line technology, including multi-screen video and an odds display wall.
In addition, Century Casinos announced collaboration with Circa Sports Colorado, making digital wagering available from one of its three Casinos beginning on May 1st.
Twin River Worldwide Holdings has built a partnership with DraftKings and FanDuel. Their ultimate goal is releasing a retail DraftKings sports book onsite located on-site in one of their casinos.