| 1 | 1 | | First Regular Session |
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| 2 | 2 | | Seventy-fifth General Assembly |
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| 3 | 3 | | STATE OF COLORADO |
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| 4 | 4 | | INTRODUCED |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | LLS NO. 25-0884.01 Rebecca Bayetti x4348 |
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| 8 | 8 | | HOUSE BILL 25-1311 |
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| 9 | 9 | | House Committees Senate Committees |
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| 10 | 10 | | Finance |
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| 11 | 11 | | A BILL FOR AN ACT |
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| 12 | 12 | | C |
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| 13 | 13 | | ONCERNING THE DEDUCTION FOR FREE BETS ALLOWED FOR THE101 |
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| 14 | 14 | | PURPOSE OF CALCULATING NET SPORTS BETTING PROCEEDS .102 |
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| 15 | 15 | | Bill Summary |
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| 16 | 16 | | (Note: This summary applies to this bill as introduced and does |
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| 17 | 17 | | not reflect any amendments that may be subsequently adopted. If this bill |
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| 18 | 18 | | passes third reading in the house of introduction, a bill summary that |
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| 19 | 19 | | applies to the reengrossed version of this bill will be available at |
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| 20 | 20 | | http://leg.colorado.gov |
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| 21 | 21 | | .) |
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| 22 | 22 | | As approved by voters in 2019, a tax of 10% is imposed on net |
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| 23 | 23 | | sports betting proceeds. Under current law, for the purpose of calculating |
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| 24 | 24 | | its net sports betting proceeds, a sports betting operator or internet sports |
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| 25 | 25 | | betting operator is allowed to deduct all payments to players, all federal |
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| 26 | 26 | | excise taxes paid, and a certain percentage of free bets placed by players. |
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| 27 | 27 | | Beginning on September 1, 2025, the bill removes the deduction for all |
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| 28 | 28 | | HOUSE SPONSORSHIP |
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| 29 | 29 | | McCluskie and Soper, |
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| 30 | 30 | | SENATE SPONSORSHIP |
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| 31 | 31 | | Roberts, |
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| 32 | 32 | | Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. |
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| 33 | 33 | | Capital letters or bold & italic numbers indicate new material to be added to existing law. |
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| 34 | 34 | | Dashes through the words or numbers indicate deletions from existing law. free bets placed. |
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| 35 | 35 | | Be it enacted by the General Assembly of the State of Colorado:1 |
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| 36 | 36 | | SECTION 1. In Colorado Revised Statutes, 44-30-1501, amend2 |
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| 37 | 37 | | (7)(c)(I) introductory portion, (7)(c)(I)(B), and (7)(c)(I)(C); repeal 3 |
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| 38 | 38 | | (7)(c)(I)(D); and add (7)(c)(I.5) as follows:4 |
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| 39 | 39 | | 44-30-1501. Definitions - rules. Definitions applicable to this part5 |
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| 40 | 40 | | 15 also appear in section 44-30-103 and article 1 of this title 44. As used6 |
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| 41 | 41 | | in this part 15, unless the context otherwise requires:7 |
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| 42 | 42 | | (7) (c) (I) On and after January 1, 2023, |
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| 43 | 43 | | THROUGH AUGUST 31,8 |
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| 44 | 44 | | 2025, when determining the free bets deduction used for calculating "net9 |
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| 45 | 45 | | sports betting proceeds" each month, as described in subsection (7)(a) of10 |
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| 46 | 46 | | this section, a sports betting operator or internet sports betting operator11 |
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| 47 | 47 | | shall include only a portion of the total free bets placed by players with12 |
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| 48 | 48 | | the sports betting operator or internet sports betting operator, as follows:13 |
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| 49 | 49 | | (B) On and after July 1, 2024, through June 30, 2025, no more14 |
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| 50 | 50 | | than two and one-fourth percent of the total amount of all bets placed by15 |
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| 51 | 51 | | players with that sports betting operator or internet sports betting operator16 |
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| 52 | 52 | | each month; |
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| 53 | 53 | | AND17 |
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| 54 | 54 | | (C) On and after July 1, 2025, through June 30, 2026 |
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| 55 | 55 | | AUGUST 31,18 |
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| 56 | 56 | | 2025, no more than two percent of the total amount of all bets placed by19 |
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| 57 | 57 | | players with that sports betting operator or internet sports betting operator20 |
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| 58 | 58 | | each month. and21 |
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| 59 | 59 | | (D) On and after July 1, 2026, no more than one and22 |
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| 60 | 60 | | three-quarters percent of the total amount of all bets placed by players23 |
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| 61 | 61 | | with that sports betting operator or internet sports betting operator each24 |
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| 62 | 62 | | month.25 |
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| 63 | 63 | | HB25-1311-2- (I.5) ON AND AFTER SEPTEMBER 1, 2025, A SPORTS BETTING1 |
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| 64 | 64 | | OPERATOR OR INTERNET SPORTS BETTING OPERATOR SHALL NOT DEDUCT2 |
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| 65 | 65 | | ANY FREE BETS PLACED BY PLAYERS WITH THE SPORTS BETTING OPERATOR3 |
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| 66 | 66 | | OR INTERNET SPORTS BETTING OPERATOR .4 |
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| 67 | 67 | | SECTION 2. Act subject to petition - effective date. This act5 |
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| 68 | 68 | | takes effect at 12:01 a.m. on the day following the expiration of the6 |
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| 69 | 69 | | ninety-day period after final adjournment of the general assembly; except7 |
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| 70 | 70 | | that, if a referendum petition is filed pursuant to section 1 (3) of article V8 |
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| 71 | 71 | | of the state constitution against this act or an item, section, or part of this9 |
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| 72 | 72 | | act within such period, then the act, item, section, or part will not take10 |
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| 73 | 73 | | effect unless approved by the people at the general election to be held in11 |
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| 74 | 74 | | November 2026 and, in such case, will take effect on the date of the12 |
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| 75 | 75 | | official declaration of the vote thereon by the governor.13 |
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| 76 | 76 | | HB25-1311 |
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| 77 | 77 | | -3- |
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