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April 29, 2022 HB 22-1412
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0314
Rep. Garnett; Van Winkle
Date:
Bill Status:
Fiscal Analyst:
April 29, 2022
House Business
Anna Gerstle | 303-866-4375
Anna.Gerstle@state.co.us
Bill Topic: SUNSET DIVISION OF GAMING
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Sunset Bill. This bill continues the Division of Gaming in the Department of Revenue,
which is scheduled to repeal on September 1, 2022. State fiscal impacts include a
minimal revenue and workload impact from changes to the program under the bill, as
well as the continuation of the program's current revenue and expenditures. The
Division of Gaming is continued through 2033, and the regulation of sports betting is
continued through 2027.
Appropriation
Summary:
No appropriation is required.
Fiscal Note Status: The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 22-1412
1
New Impacts
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue Cash Funds - -
Expenditures Cash Funds - -
New FTE - -
Other Budget Impacts TABOR Refund - -
Continuing Impacts
Revenue Cash Funds
2
- $183,507,515
Expenditures Cash Funds - $20,632,177
Continuing FTE - 120.5 FTE
Other Budget Impacts TABOR Refund - -
1
Table 1 shows the new impacts from changes under the bill and the continuing impacts from extending the program
beyond its current repeal date. Because the bill continues a program with minor changes, there are no new impacts.
The continuing program impacts may end if the bill is not passed and the program is allowed to repeal.
2
This amount includes gaming and sports betting tax revenue, as well as administrative fees and fines. Page 2
April 29, 2022 HB 22-1412
Summary of Legislation
Under current law, the Division of Gaming (division) in the Department of Revenue (DOR) repeals
September 1, 2022. This bill includes the recommendations of the sunset review completed by the
Department of Regulatory Agencies, which include the following:
continuing the division until September 1, 2033, and the regulation of sports betting by the
division until September 1, 2027;
allowing the Limited Gaming Control Commission, at its discretion, to delegate licensing duties
to the division;
lowering the age requirement to work in a casino from 21 years old to 18 years old;
clarifying that the Fantasy Contests Act uses the DOR’s Hearings Division to conduct hearings for
violations;
repeals the requirement that applicants for sports betting licenses whose primary residences are
located outside of the United States submit to a fingerprint-based criminal history record check,
unless required to do so by the commission; and
requires that sports betting winnings be subject to the Gambling Payment Intercept Act.
Background
Division of Gaming. The Limited Gaming Control Commission and the Division of Gaming regulate
casino gambling in Central City, Black Hawk, and Cripple Creek, and sports betting that occurs in
licensed casinos and on internet platforms that contract with a licensed casino. The division also
regulates fantasy sports contents. The sunset report completed by the Department of Regulatory
Agencies can be found here:
https://drive.google.com/file/d/1CtzowSNOryiR6mHPVI7Vy7HMCH_G4_wA/view
Gambling Payment Intercept Act. This program requires the Department of Revenue to maintain, or
contract with a vendor to maintain, a registry of individuals who owe unpaid child support, criminal
restitution, and/or unpaid debt to the state. Prior to paying a winner, a licensee must check whether
the winner is on the registry and if, listed, withhold the amount owed and send it to the DOR or the
vendor, to be distributed to the applicable state agency.
Continuing Program Impacts
Expenditures. Based on the department's projections for FY 2022-23, the DOR is expected to have
expenditures of $20.6 million for the Division of Gaming. If this bill is enacted, current expenditures
will continue for the program starting in FY 2023-24. If this bill is not enacted, the program will end
on September 1, 2023, following a wind-down period, and state expenditures will decrease starting in
FY 2023 24 by the amounts shown in Table 1.
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April 29, 2022 HB 22-1412
Revenue. Based on the department's projections for FY 2022-23, the division is expected to collect
$183.5 million in revenue, which includes gaming and sports betting tax revenue, fines, and licensing
and operation fees. If this bill is enacted, this revenue will continue starting in FY 2023-24. If the bill
is not enacted, some portion of the amount in Table 1 would no longer be collected. Because the
Colorado Constitution gives authority to the Limited Gaming Control Commission to regulate limited
gaming, and portions of state law concerning some aspects of gaming are located in other sections of
statute, this amount cannot be estimated. This fiscal note will be updated if more information becomes
available. Licensing fees and other service revenue is subject to TABOR, while certain tax revenue is
exempt from TABOR.
The changes to the program that drive additional revenue and costs are discussed in the State Revenue
and State Expenditures sections below.
State Revenue
The bill may increase revenue to the Department of Public Safety by a minimal amount if there is a
change in the number of criminal history record checks completed. Additional checks for potential
employees between the ages of 18 and 21 will increase workload, which may be offset by fewer checks
completed for internationally based applicants. The fee for a check is $39.50 per check, of which $28.25
per check is subject to TABOR. The revenue impact is expected to be minimal.
State Expenditures
The bill increases workload for the Division of Gaming to process additional operator license
applications from people between the ages of 18 and 21 and make modifications to the Gambling
Payment Intercept Act. Some of the increase may be offset by a reduction in workload from collecting
fingerprints from internationally based applicants. No new appropriations are required.
Effective Date
The bill takes effect September 1, 2022, assuming no referendum petition is filed.
State and Local Government Contacts
Personnel Public Safety Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: .