First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0884.01 Rebecca Bayetti x4348
HOUSE BILL 25-1311
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE DEDUCTION FOR FREE BETS ALLOWED FOR THE101
PURPOSE OF CALCULATING NET SPORTS BETTING PROCEEDS .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
As approved by voters in 2019, a tax of 10% is imposed on net
sports betting proceeds. Under current law, for the purpose of calculating
its net sports betting proceeds, a sports betting operator or internet sports
betting operator is allowed to deduct all payments to players, all federal
excise taxes paid, and a certain percentage of free bets placed by players.
Beginning on September 1, 2025, the bill removes the deduction for all
HOUSE SPONSORSHIP
McCluskie and Soper,
SENATE SPONSORSHIP
Roberts,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. free bets placed.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-30-1501, amend2
(7)(c)(I) introductory portion, (7)(c)(I)(B), and (7)(c)(I)(C); repeal 3
(7)(c)(I)(D); and add (7)(c)(I.5) as follows:4
44-30-1501. Definitions - rules. Definitions applicable to this part5
15 also appear in section 44-30-103 and article 1 of this title 44. As used6
in this part 15, unless the context otherwise requires:7
(7) (c) (I) On and after January 1, 2023,
THROUGH AUGUST 31,8
2025, when determining the free bets deduction used for calculating "net9
sports betting proceeds" each month, as described in subsection (7)(a) of10
this section, a sports betting operator or internet sports betting operator11
shall include only a portion of the total free bets placed by players with12
the sports betting operator or internet sports betting operator, as follows:13
(B) On and after July 1, 2024, through June 30, 2025, no more14
than two and one-fourth percent of the total amount of all bets placed by15
players with that sports betting operator or internet sports betting operator16
each month;
AND17
(C) On and after July 1, 2025, through June 30, 2026
AUGUST 31,18
2025, no more than two percent of the total amount of all bets placed by19
players with that sports betting operator or internet sports betting operator20
each month. and21
(D) On and after July 1, 2026, no more than one and22
three-quarters percent of the total amount of all bets placed by players23
with that sports betting operator or internet sports betting operator each24
month.25
HB25-1311-2- (I.5) ON AND AFTER SEPTEMBER 1, 2025, A SPORTS BETTING1
OPERATOR OR INTERNET SPORTS BETTING OPERATOR SHALL NOT DEDUCT2
ANY FREE BETS PLACED BY PLAYERS WITH THE SPORTS BETTING OPERATOR3
OR INTERNET SPORTS BETTING OPERATOR .4
SECTION 2. Act subject to petition - effective date. This act5
takes effect at 12:01 a.m. on the day following the expiration of the6
ninety-day period after final adjournment of the general assembly; except7
that, if a referendum petition is filed pursuant to section 1 (3) of article V8
of the state constitution against this act or an item, section, or part of this9
act within such period, then the act, item, section, or part will not take10
effect unless approved by the people at the general election to be held in11
November 2026 and, in such case, will take effect on the date of the12
official declaration of the vote thereon by the governor.13
HB25-1311
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