The Legal US Sports Betting online market continues to expand at a rapid rate, as States join the race to raise tax revenue and operate a legal sports betting market.
Yesterday, Coloradans had the chance to vote on Proposition DD, which would legalize sports betting in the State, the counted votes are only narrowly in favor of the measure. The current reporting of the votes tallied sits at 676,786 had voted in favor and 666,204 had voted against, according to a Denver Post vote tracker. After more than 1.3 million people voted, we can expect a recount and anxious wait.
Proposition DD would legalize sports betting at physical locations throughout the state, as well as state-wide mobile and internet, though interactive sportsbooks will have to be tied to brick and mortar properties that have a “master license.” Sports betting will be taxed at a rate of 10 percent and while betting on college sports will be legal, prop bets on college sports are not. Which I think is a great model for States moving forward.
According to reports, sports betting giant FanDuel pumped $300,000 into passing Proposition DD signalling Colorado as a major player in the legal online sports betting market in America should the vote be approved. Lawmakers also tactically tied sports betting to a key environmental issue in Colorado by funneling revenue from sports betting to the Colorado Water Plan. The proposition has made for strange relationships, with environmentalists and gaming companies working in tandem to get the proposition passed.
The text of the ballot measure has come under fire with many Colorado residents labelling the verbiage somewhat confusing, which ultimately could have an impact on whether or not the proposition passes. This was just met with a welcome to Colorado politics.
Colorado would be a major boost for online sports betting in America, the tactics employed by the State to tie tax revenue to fund projects may set a precedent for States wishing to join the gold rush in the near future.
The anxious wait for industry participants and Colorado residents is set to continue as we wait on the recount, and as a reminder Colorado usually has about 8 percent of the vote uncounted at the end of Election Night tallies. So were not there just yet!