Colorado Sports Betting Revenue is Helping Protect the State's Most Indispensable 'Resource'

Nearly a half-decade following the launch of Colorado sports betting, the state has seen plenty of major benefits from its revenue generation. One of its impacts, though, may not be receiving enough shine.

As it turns out, online sports betting in Colorado goes a long way to help protect the state’s most precious resource: its water supply.

Some will take issue with the framing. “Water” is not a traditional resource. It should not be viewed as a commodity. It is essential to life—a necessity to which everyone should have access.  

Still, water does require maintenance and protection, among other non-negotiable upkeep measures. That takes money. And Colorado sports betting revenue generates plenty of that. Much of it, apparently, goes directly back to preserving and optimizing The Centennial State’s vast, oftentimes scenic water supply.

Colorado Sports Betting has Generated Millions of Dollars for Various Water Supply Projects

Ever since the debut of Colorado online sports betting, the state has generated over $100 million in tax revenue. Since 2023 alone, in fact, The Centennial State has carved out nearly $60 million in additional tax funds, according to Sportsbook Review’s data. 

These numbers can be thrown around quite a bit. After all, most view sports betting in the United States through a revenue generation lens. But spotlights are not always cast onto where that money goes. In Colorado’s case, a significant amount of these funds are apportioned for water preservation and activities. Here is Heather Willard of FOX 31 with more:

“Winning, of course, helps line your pockets, but if you lose, you helped Colorado’s water reach a winning future. According to Jeannine Shaw, the Colorado Water Conservation Board gets almost all of the 10 percent tax paid by casinos on sports betting profits. ‘It is good money, and it’s really exciting,” Shaw tells FOX 31. In the past four fiscal years, the funding has amounted to nearly $70 million. It’s been used to pay for projects that help protect Colorado’s water, including projects that benefit waterways from the South Platte River to the Colorado River in Colorado’s high country.

“The projects range from increasing access to recreation opportunities, like white water rafting, to ensuring there are better canals that conserve water for farmers, to protecting the water supply from wildfires. ‘What a lot of people don’t realize is that a lot of our reservoirs and water infrastructure could very much be impacted by wildfires,’ Shaw says. The Water Conservation Board during its last fiscal year funded 84 water projects in 30 counties, all thanks to over $25 million in sports betting tax dollars.”

These figures are somewhat staggering. And they may be on the verge of increasing.

Sports Betting Revenue Already on the Rise in The Centennial State

Despite being active for almost five years, the Colorado sports betting industry remains a growth market. Initial returns for the 2025 calendar year show that the betting handle is increasing by nearly 6 percent compared to 2024. On top of that, tax revenue is set to climb by a projected 10 percent year-over-year.

Believe it or not, the latter figure may prove too conservative. Volume continues to increase at the best American sports betting sites across the country. That lends itself to some default tax-revenue growth. 

However, since 2020, the amount of taxes paid by state casinos has remained capped at just under $30 million. Colorado voters recently approved a new ballot measure that nixes that maximum. As such, the state is now eligible to receive more gambling revenue from primary operators. 

Based on this development, Colorado sports betting gross profits can stay stagnant, and the state would still receive more money, because they’re now able to receive a larger piece of that same pie. By extension, this will open up more funding for The Water Conservation Board. That theoretically should improve the state of Colorado’s overall water supply moving forward.

States May Seek to Highlight More Sports Betting Benefits Like This

By now, we are all well aware of the usual benefits and downsides from legal sports betting in the United States. Tax revenue and regulation of an industry people frequent overseas are the primary upsides. Meanwhile, upticks in problem gambling and reports of financial issues, including bankruptcy, are the most common and powerful negatives. 

Discussing the trade-off between the benefits and negative consequences can be awkward. It is also necessary. Opponents to Colorado sports betting, for instance, have valid arguments and concerns. The legalization of sports betting effectively proves that the state believes constituents would be worse off without it. And they have their own valid arguments. The biggest one: The absence of domestic sports betting does not actually stop it. Customers will cross state lines to place wagers or visit offshore sports betting sites. 

Yet, the industry is coming under increasing fire for the downsides. In particular, everything from gambling addiction and predatory marketing practices are taking center stage. Again: This is all fair. There is also no denying that, in Colorado’s case, additional funding for water access and preservation is a good thing. 

To that end, do not be surprised if we see more and more states provide more prominent overviews of where sports betting revenue goes. We have already seen others spotlight the positive impact on educational funding. Now, we see Colorado championing the effects of sports betting on water. These agendas have higher public approval ratings. Emphasizing them more often could change the way sports betting in the USA is discussed on both granular and macro levels.

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