Thirsty untended cattle left to fend for themselves on BLM land in winter climb into the Grand Valley Canal and break through the ice to get water. Proposition JJ would let the state keep revenues generated by the sports betting tax over the $29 million cap and put those funds towards water projects state wide. The Colorado Cattlemens Association supports Proposition JJ.
[Propositions placed on the ballot by the legislature that amend state statutes or refer a tax question to the voters are identified by double letters.]
Proposition JJ would let the state keep additional revenue it collects from the sports betting tax above the amount voters approved when they first legalized sports betting in 2019. Proposition DD, approved by voters in 2019, authorized the state to keep up to $29 million/year in taxes generated by sports betting. Proposition JJ will let the state keep revenue the tax generates above the $29 million cap and spend it on water projects throughout the state instead of refunding it to casinos and sports betting operators.
In Colorado, sports betting is taxed at 10%, compared to 36% in Pennsylvania and 52% in New York.
In budget year 2024-2025, the amount collected over the $29 million cap is forecast to be $1.2 million, and in 2025-2026 it is expected to be $2.5 million.
An otter swims in the Grand Valley Canal
If voters approve Proposition JJ and let the state keep those additional funds, they would be spent on state-wide water needs, like land use planning for water conservation, watershed health, water storage and supply projects like reservoirs, conservation and drought planning, technical assistance to increase agricultural water efficiency and education ad outreach to boost water conservation.
Main arguments for Proposition JJ: The state will get much-needed funds to support water conservation into the future, and to help the state meet its increasing demand for water as Colorado’s population continues to grow. Proposition isn’t a tax increase because the taxes have already been collected.
Main arguments against Proposition JJ: It is is effectively a tax increase because it deprives sports betting operators of money the state would otherwise refund to them. When voters passed Proposition DD, they promised to only take $29 million in revenue from sports betting funds. It should stick to that amount.
Who supports it:
Western slope House Reps. Matt Soper (R) and Rick Taggart (R) were among the legislators who voted to put this question on the ballot. The Colorado Cattlemen’s Association and the Environmental Defense Action Fund both support the measure. It’s also supported by the Colorado Gaming Association, whose executive director, Peggi O’Keefe, said “We certainly always intended to pay that 10% tax with sports betting. The fact we exceeded expectations I don’t think changes that.”
The Colorado Gaming Association also says,
“In its first year, Colorado sports betting generated nearly five times more money for statewide water projects than anticipated…State officials’ initial projects for 2020-2021 were between $1.5 and $1.7 million. Recent reports indicate that the gaming industry has generated more than $11.4 million for Colorado’s Water Conservation Board. As the sports gambling industry continues to grow, so will Colorado’s prospects of a secure water future.”
Who opposes it:
As of October 11, 2024, there is no organized opposition to Proposition JJ.
Here’s some interesting information for this 2024 election cycle…
Environmental Defense Action Fund PAC Donors
https://www.opensecrets.org/political-action-committees-pacs/environmental-defense-action-fund/C00471540/donors/2024