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The Economic Impact and Benefits of Legalized Sports Betting In Colorado?
Different states in America have had different attitudes and boundaries when it comes to betting on sports. However, the passion for putting down wagers on a myriad of games has never dwindled in avid players, who were, due to the federal ban, forced to place their bets “under the table”. One thing is certain though – legalizing sports betting at the state level will not only enable sports fans to freely invest in their favorite sports activities, but it will inevitably grow and stabilize the economy. Apart from the much-needed economic boost, this type of progress will create thousands of opportunities for both employment and entertainment.
The Turning Point
The advantages of such legalization were recognized long ago, but accepted to different extents. During the times of the Great Depression in 1931, Nevada’s legislature lifted the gambling ban in aid of the state’s struggling economy. In 1949, it authorized the opening of the first legal sportsbook of the nation in Las Vegas.
The Supreme Court’s May ruling on Murphy v. NCAA (National Collegiate Athletic Association) struck down the ban on sports betting and allowed each state to decide on the legal wagering boundaries and regulations themselves. While some jumped at the opportunity right away (like New Jersey and Delaware), Colorado took its time and approached the legalization with caution. It officially launched legal sports betting on May 1st, 2020, six months after the state voted on Proposition DD i.e. its legalization bill. Should you wish to know more about the most recent developments in Colorado’s sports betting industry, further resources and information can be found at https://www.wsn.com/sports-betting-usa/colorado/.
This new and legalized system is forecasted to raise tax revenues of $6.5 million by the end of the fiscal year in 2020 and up to $29 million in the 2020-21 fiscal year. As the Legislative Council of the Colorado General Assembly suggests, over the next five years we should see revenue of approximately $16 million annually.
Casinos are experiencing difficulties worldwide and it has become extremely hard for them to stay afloat. With the introduction of regulated sports betting they would be able to add a significant amount to their annual profit, helping the US economy at the same time. If we consider the ever-increasing rise in the popularity of online gambling, the legalization of sports betting gains even greater significance. With technological advances that allow sports fans to place bets on the go or from the comfort of their own homes, the economy’s future looks much brighter.
When it comes to employment, things are improving as well. A legal sports gambling system would create 125 000 to 150 000 available job posts in the industry. This extends to working in brick and mortar casinos at all levels, as well as in keeping the online gambling businesses going.
The state of Colorado was not completely inflexible when it comes to betting. “Limited stakes gaming” was approved in 1990 in three mountain towns: Black Hawk, Central City and Cripple Creek. In 2008 casinos were allowed to operate around the clock, paving the way towards the most recent developments. These changes brought about an increase in revenue percentage for the three towns as well as the State Historical Fund. Soon after, the casinos in the aforementioned cities were allowed to apply for sport-betting licenses.
As far as taxes go, it was first recommended that they are set at a rate between 6.5 and 16% of the net revenue from licensed sports betting. In the end, upon issuing the final bill, legislators settled on 10%. However, the tax will not have to be paid by all the people of Colorado, but it will come from sports bettors at casinos and authorized mobile-app companies.
When we examine the current state of affairs, it becomes clear that the impact on Colorado’s economy is going to be a positive one. The majority of the tax money collected will go towards the state’s water plan, but the whole legalization process is going to have numerous advantages on the state’s wellbeing. It will offer jobs, strengthen the economy and provide entertainment many have eagerly waited for.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes