Proposition DD aims to legalize and tax sports gambling in Colorado | – BerthoudSurveyor.com

By Dan Karpiel

The Surveyor

Coloradoballot measure Proposition DD, if approved, would legalize sports gambling inColorado and impose a 10% tax on profits earned from businesses that conductsports betting operations. The tax levied under the terms of Prop DD would notbe levied on individuals who win a wager but rather on the casinos and onlinegambling businesses contracted by casinos who earn profits on sports gambling.Since the measure seeks to impose a new tax, it requires voter approval underthe Taxpayer Bill of Rights (TABOR) law.

Asa result of a 2018 ruling by the United States Supreme Court in the case Murphyv. NCAA, the federal prohibition on sports gambling under the Professional andAmateur Sports Protection Act was declared unconstitutional via the anti-commandeeringdoctrine, which states the federal government, lacks the power directlyto compel the States to require or prohibit acts which Congress itself mayrequire or prohibit. Since 2018, eight states have already passed lawslegalizing sports gambling and several others are on track to do likewise.

Ifapproved by voters, DD would permit Coloradans over the age of 21 to placewagers on the outcome of collegiate, professional and Olympic sporting eventsin-person at casinos in Black Hawk, Central City and Cripple Creek and onlineby casino-contracted internet gambling businesses.

Thesecond portion of the measure would be to impose a 10% tax on casino profitsearned from sports betting operations and use the funds generated for threepurposes (with percentages of revenue earned). One, create and fund the WaterImplementation Cash Fund (69.5%); two, cover the costs of administration andregulation of sports gambling (27.22%); and three, provide additional fundingto the state Office of Behavioral Health to raise awareness and providetreatment for gambling addiction (1.35%). At least $534,000 annually, or 5.53%,whichever is greater, will go into a hold harmless fund where entities that experiencea financial loss due to sports gambling may apply for funds to recover thoselosses.

Thelargest portion of the tax revenue generated, which is estimated to be around$10 million in fiscal year 2020-21 and increase to $13.5 to $15.2 million in2021-22, would go toward water projects in the state. Per the language of themeasure, the funds here would be used to provide grants to governmental andprivate entities for water storage and supply projects, conservation, land use,and drought-planning projects, water education, outreach, and innovationprojects, agricultural water efficiency projects, and environmental andrecreation projects.

PropositionDD enjoys broad bipartisan support. The measure was co-sponsored in theColorado General Assembly by Representatives Alec Garnett (D) and PatrickNeville (R) and Senators John Cooke (R) and Kerry Donovan (D). A wide anddiverse array of organizations also support the measure, including the ColoradoChamber of Commerce, the Colorado Cattlemans Association, the Colorado FarmBureau, the Environmental Defense Fund, ProgressNow Colorado and the BellPolicy Center.

Oneargument in favor of legalizing sports gambling is doing so would help eradicatethe black market for sports gambling, e.g. the private bookmakers, or bookies,who can have ties to various organized crime groups and engage in other illegalactivities.

Asstate Representative Alec Garnett, a House Democrat and co-sponsor of the ballotmeasure said, Coloradans should have the option of betting on the Nuggetsor the Broncos. This new funding will go toward protecting our precious waterand we believe this is something everyone can support. I also hope this measurewill help stamp out black market sports betting and thank my colleagues on bothsides of the aisle for their support.

Anotherargument in favor of the measure states that with Colorados populationexpected to double by the year 2060, the state will not have an adequate watersupply at current usage rates to sustain the same quality of life. The fundsgenerated from this tax, which is imposed on businesses who provide an at-willactivity, will help ensure there is enough water for future needs while helpingpreserve and protect Colorados natural environment.

Anargument against voting for DD is people can become addicted to gambling,sports wagering included, and there exists no prohibition on how much a personcan lose placing bets. Prop DD will make it easier for someone with a gamblingproblem to wager, and potentially lose, a great deal of money with just a fewclicks on their smartphone or computer.

Theorganizations Coloradans for Climate Justice and Save the Colorado areregistered in opposition to measure and argue the measure will fund,river-destroying dams supported by the Colorado Water Plan. GaryWockner, director of Save the Colorado and Coloradans for Climate Justice,said, This Gambling For Dams bill is a climate-denying,river-destroying scheme pure and simple. To think that Colorado can dam its wayout of climate change is a gamble of the highest stakes.

Ayes vote on Proposition DD is a vote in favor of legalizing sports betting inColorado and imposing a 10% tax on casino profits earned from those wagers anddesignates the funds be used primarily to fund water supply projects in thestate.

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Proposition DD aims to legalize and tax sports gambling in Colorado | - BerthoudSurveyor.com