Colorado Proposition JJ, titled the “Retain Additional Sports Betting Tax Revenue” for Water Projects Measure, is a 2024 ballot initiative that proposes removing the existing cap of $29 million on sports betting tax revenue that the state can collect and retain. Under current regulations established by Proposition DD in 2019, any tax revenue exceeding this cap must be refunded to sports betting operators. Proposition JJ seeks to eliminate that cap, allowing Colorado to retain all tax revenue generated from sports betting, which would primarily fund water conservation and infrastructure projects in the state.
Opposing Proposition JJ ensures responsible fiscal policy by maintaining the $29 million tax cap on sports betting revenue, respecting the original intent of voters to limit state-held gambling funds.
Removing this cap (by voting “yes” on Prop JJ) risks creating a budget reliant on fluctuating and ethically questionable revenue streams, which could jeopardize stable funding for essential water infrastructure. By rejecting Proposition JJ, Colorado voters can protect industry standards, uphold transparency, and advocate for more equitable funding sources for public infrastructure.
One key argument against Proposition JJ is that it effectively introduces a tax increase by
eliminating the refunds that currently go to sports betting operators when revenue exceeds the$29 million cap. When voters originally approved the legalization of sports betting,
they were told there would be a limit on how much revenue the state could keep, and any excess would be returned.
By removing this cap, Proposition JJ increases the financial burden on the
industry without increasing the tax rate, which some view as an indirect way to increase taxes
without voter consent. In this light, opponents see the measure as violating the spirit of the
original voter-approved proposition.
Another concern centers on the reliance on “sin taxes,” or taxes on activities like
gambling, to fund critical water infrastructure. Opponents argue that this could create a
dependency on an unstable and unreliable revenue source. Gambling tax revenue can fluctuate
based on several factors, such as changes in consumer behavior, economic downturns, or
regulatory changes. If people reduce their gambling activities, the funding for water projects
might decrease as well, leaving important infrastructure projects underfunded during times of
need.
Given the importance of water conservation efforts in Colorado—especially in light of
prolonged droughts and population growth—some argue that more stable, long-term funding
solutions should be considered instead of depending on fluctuating revenues from gambling.
Furthermore, some opponents argue that tying water infrastructure funding to sports
betting revenue shifts the financial responsibility away from the public, who benefits from these water projects. In their view, the burden of funding water management should fall more broadly on taxpayers through more reliable means, such as general taxes, rather than being limited to revenue from a specific industry.
“It’s definitely unique in Colorado that sports betting funding is tied to water projects,” said Cole Bedford (qtd. in Albaladejo), the chief operating officer for the Colorado Water Conservation Board. This perspective highlights a concern that funding essential public goods through niche industries may not be equitable or sustainable in the long run.
In summary, while Proposition JJ aims to provide more consistent funding for Colorado’s
water infrastructure, opponents argue that the measure introduces a hidden tax increase, creates reliance on an unstable revenue source, and shifts the responsibility for public infrastructure from taxpayers to a specific industry.
These arguments form the basis of opposition to the measure in the upcoming election.
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Works Cited
Albaladejo, A. (2024a, October 21). “Sports betting profits are exceeding expectations. Prop
jj would let the state keep the Extra Tax Revenue.” Denver 7 Colorado News (KMGH).
https://www.denver7.com/news/politics/sports-betting-profits-are-exceeding-
expectations-prop-jj-would-let-the-state-keep-the-extra-tax-revenue
Mullane, S. (2024b, October 16). Proposition JJ: Colorado would be allowed to keep all the
sports betting tax revenue it collects. The Colorado Sun.
Proposition JJ: Colorado would be allowed to keep all the sports betting tax revenue it collects
