Colorado voters have approved Proposition JJ, a ballot initiative that authorizes the state to retain and use sports betting tax revenues exceeding $29 million annually, redirecting the surplus toward critical water conservation and infrastructure projects.
The measure was introduced by House Bill 24-1436 and backed by a bipartisan coalition led by Senator Dylan Roberts, Speaker of the House Julie McCluskie, and Representative Marc Catlin. Governor Jared Polis signed the bill into law in May 2024, allowing voters to decide the matter during the November elections.
Since the legalization of sports betting in 2019 under Proposition DD, Colorado capped annual tax revenue from sportsbooks at $29 million, with any excess refunded to operators. However, with the rapid growth of online wagering, state revenues have repeatedly surpassed that threshold. In FY 2022–23, Colorado collected $29.9 million—nearly $900,000 over the cap—and projections for FY 2025–26 reach up to $36.2 million.
Now, under Proposition JJ, the surplus will be allocated to the Water Plan Implementation Cash Fund, supporting water storage, irrigation modernization, ecosystem restoration, and watershed health. State officials estimate $1.2 million will be available in FY 2024–25, rising to $2.5 million by FY 2025–26.
Supporters of the measure, including environmental organizations and farming advocates, argue that reinvesting gaming taxes in water infrastructure addresses Colorado’s urgent needs amid population growth and climate stress. Critics warned of potential misuse of public funds without stricter oversight but failed to block the popular measure.
With Proposition JJ now in effect, Colorado becomes a national example of how sports betting revenue can be redirected from industry rebates to sustainable public investment.
