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Colorado Casino Gambling Tax Revenue Lower than Expectations

The July 06, 2023, By Leslie Rogers

Colorado’s tax revenue from casinos one year after the local gambling laws were expanded with more hours, more games and higher betting limits is up, but not as much as was expected.

Since July 2009, Colorado’s three mountain gambling towns have allowed casinos to stay open 24 hours a day, seven days a week and have raised the betting limits from five dollars to one hundred dollars, under the voter approved amendment 50.

State legislative economists estimate gambling tax revenue were $108.7 million for the fiscal year that ended on July 30, due in part to the gambling amendment and the improving economy. This is up from an eight year low of 94.9 million the year before, when the hard recession and skyrocketing gas prices kept people from driving to the gambling towns of Central City, Cripple Creek and Black Hawk. The amendment, according to analysts, generated $9.4 million of the increase, far, far less than the projected $30 million increase.

"We're still recovering from the effects of the casinowide smoking ban that went into effect in January 2008," Colorado Gaming Association Executive Director Lois Rice said Friday.

However, Dan Baader, who was mayor of Cripple Creek until May 5, said that the higher betting limits helped the casinos maintain their revenue during a weakened economy.

"If it would've stayed at $5, I think half the casinos would be gone," he said.

According to legislative economists, casinos gambling tax revenue will reach $115.2 million in fiscal 2010-2011, which would exceed the record set in 2006-2007 of $112 million.

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