Colorado Voters Approve Unlimited Sports Betting Tax

Colorado voters have approved Proposition JJ, a landmark measure to retain all sports betting tax revenues for critical water infrastructure projects. With over 75% support, Proposition JJ removes existing revenue caps, allowing for a substantial financial boost to the Colorado Water Plan. This decision marks a significant step forward in securing a sustainable water future for the state, especially as population growth strains resources. Discover how this initiative will enhance Colorado’s water conservation and infrastructure efforts and what it means for the state’s future.

Colorado Voters Approve Unlimited Sports Betting Tax for State Water Infrastructure Projects

On November 6, Colorado voters overwhelmingly supported Proposition JJ, a referendum allowing the state to retain all sports betting tax revenue for water infrastructure projects. Approved by over 75% of voters, this measure will provide a vital financial boost to the Colorado Water Plan, a strategy designed to address the state’s growing water challenges. Previously, Colorado capped its sports betting revenue allocation to water projects at $29 million annually, returning any excess to operators. With Proposition JJ’s passage, the state can now channel all tax proceeds into water conservation and infrastructure, a move that comes at a crucial time for Colorado’s water security.

Key Benefits of Proposition JJ

1. Increased Funding for Colorado’s Water Needs
   Proposition JJ’s approval is expected to direct significantly more resources toward Colorado’s Water Plan—a comprehensive initiative launched in 2015 to address the state’s long-term water issues. Colorado legalized sports betting in 2019 with Proposition DD, which imposed a 10% tax on sports betting revenues earmarked for water projects. Since the legalization of sports betting in May 2020, the tax has generated an estimated $79 million for water conservation, infrastructure, and agricultural efficiency. By removing the revenue cap, Proposition JJ will allow for even greater investment in these areas, helping meet Colorado’s escalating water demands.
2. Supporting the Colorado Water Conservation Board’s Goals
   The Colorado Water Conservation Board (CWCB), responsible for the state’s water policy and conservation initiatives, stands to benefit immensely from Proposition JJ. The CWCB projects that Colorado will need an estimated $3.85 billion in loans and grants over the next 30 years to maintain and expand its water infrastructure. However, the board faces a significant funding shortfall of approximately $1.5 billion. The unlimited revenue from sports betting taxes, now secured by Proposition JJ, will provide crucial support to close this gap, allowing CWCB to fund projects essential for long-term water sustainability.
3. A Vital Response to Population Growth and Environmental Challenges
   Colorado’s population is projected to reach 9 million by 2050, putting unprecedented pressure on its water resources. The Colorado Water Plan outlines strategies for water conservation and sustainable access, including projects focused on infrastructure development, agricultural efficiency, and efficient residential water use. Despite these goals, the plan has been “chronically underfunded,” jeopardizing Colorado’s ability to meet future water demands. Proposition JJ’s approval comes at a critical time, enabling the state to make the substantial financial investments required to secure water resources for generations to come.

The Evolution from Proposition DD to Proposition JJ

The journey from Proposition DD to Proposition JJ reflects Colorado’s growing commitment to using innovative funding methods for essential infrastructure. When Colorado legalized sports betting in 2019 through Proposition DD, it dedicated sports betting tax revenues to water projects, capping the annual revenue retained for this purpose at $29 million. However, with the state’s ongoing need for robust water infrastructure funding, Proposition JJ was introduced to remove this cap, ensuring that all generated tax revenue could be allocated to the Colorado Water Plan without returns to operators.

The success of Proposition JJ not only secures immediate funds but also lays the groundwork for Colorado to maintain stable water access as the population grows. This shift allows Colorado to fully harness sports betting revenue as a reliable source of funding, reinforcing the state’s ability to respond to both current and future environmental challenges.

The approval of Proposition JJ is a pivotal moment for Colorado, marking a stronger commitment to securing its water future. By channeling all sports betting tax revenue into water infrastructure, Colorado gains a powerful funding source for the Colorado Water Plan. As water demands increase and environmental pressures grow, the successful implementation of Proposition JJ will support a sustainable, resilient water infrastructure system. With a clear strategy and the necessary financial backing, Colorado is positioned to build a robust water conservation framework that will benefit its residents and natural resources for decades to come.