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class="category-politics">Politics</a></h2><span class="icon-arrow-right"></span><h2><a href="https://www.denverpost.com/politics/election/" class="category-election">Election</a></h2><a class="dfm-trust-indicators-type-of-work" href="#">Explainer<span><strong>Explainer</strong> Provides context, definition and detail on a specific topic. </span></a></div> <div class="headline-area"><div class="headlines"> <h1 class="entry-title"> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <span class="dfm-title premium"> Proposition JJ would allow Colorado to keep more money from sports betting taxes for water projects </span> </h1> <h2 class="subheadline">Ballot measure proposes lifting of revenue cap that now sends excess money to casinos</h2></div></div><div class="article-share" id="sharing-top"><div class="sharedaddy sd-sharing-enabled"><div class="robots-nocontent sd-block sd-social sd-social-icon sd-sharing"><h3 class="sd-title">Share this:</h3><div class="sd-content"><ul><li class="share-facebook"><a rel="nofollow noopener noreferrer" data-shared="sharing-facebook-6743195" class="share-facebook sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=facebook" target="_blank" title="Click to share on Facebook" ><span></span><span class="sharing-screen-reader-text">Click to share on Facebook (Opens in new window)</span></a></li><li class="share-reddit"><a rel="nofollow noopener noreferrer" data-shared="" class="share-reddit sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=reddit" target="_blank" title="Click to share on Reddit" ><span></span><span class="sharing-screen-reader-text">Click to share on Reddit (Opens in new window)</span></a></li><li class="share-twitter"><a rel="nofollow noopener noreferrer" data-shared="sharing-twitter-6743195" class="share-twitter sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=twitter" target="_blank" title="Click to share on Twitter" ><span></span><span class="sharing-screen-reader-text">Click to share on Twitter (Opens in new window)</span></a></li><li class="share-end"></li></ul></div></div></div></div></div></header><div class="article-content"><div class="article-content-wrapper"><div class="header-features hide"><div class="dfm-featured-top-flex-container"></div><div class="meta"><img class="avatar avatar-85 photo coauthor-avatar lazyload size-85x85" data-sizes="auto" data-src="https://www.denverpost.com/wp-content/uploads/2018/11/SCHMELZER_DP_STAFF_038-e1542178997586.jpg?w=85" data-srcset="https://www.denverpost.com/wp-content/uploads/2018/11/SCHMELZER_DP_STAFF_038-e1542178997586.jpg?w=85 85w" alt="DENVER, CO - NOVEMBER 8: Elise Schmelzer - Staff portraits at the Denver Post studio. (Photo by Eric Lutzens/The Denver Post)"><div class="coauthor-avatar-container"><div class="byline">By <a href="https://www.denverpost.com/author/elise-schmelzer/" title="Posts by Elise Schmelzer" class=" author-name" rel="author">Elise Schmelzer</a> | <a href="mailto:eschmelzer@denverpost.com">eschmelzer@denverpost.com</a> | The Denver Post</pre></div><div class="time">UPDATED: <time datetime="2024-10-09 05:48:38">October 9, 2024 at 5:48 AM MDT</time></div></div></div></div><div class="article-body"><div class="body-copy mng-subscriber-content"><div class="wp-remixd-voice-wrapper"><script type="text/javascript" id="remixd-audio-player-script" src="https://tags.remixd.com/player/v5/index.js?cb=%%CACHEBUSTER%%" charset="utf-8" async></script></div><p>Proposition JJ on Colorado’s ballot asks voters to decide whether the state should continue returning excess sports betting tax revenue to casinos — or keep the money to spend on water projects.<p>Colorado voters in 2019 <a href="https://www.denverpost.com/2019/11/06/colorado-proposition-dd-results-sports-betting/">legalized sports betting online</a> and in the state’s three gaming towns — Cripple Creek, Black Hawk and Central City. The authorization allowed the state to keep up to $29 million in tax revenue from gambling each year but mandated that it return any tax proceeds above that cap to casinos and sports-betting operators.</p><p>Tax revenue surpassed $29 million in the state’s 2023-2024 budget year and is projected to increase in coming years, according to <a href="https://leg.colorado.gov/content/initiatives/initiatives-blue-book-overview/ballot-information-booklet-blue-book">the state’s Blue Book voter guide</a>.</p><p>Colorado lawmakers placed Prop. JJ on the ballot. Since it proposes a change to state law, it needs a simple majority to pass.</p><h4>What would Prop. JJ do if passed?</h4><p>Under the measure, all tax money collected from sports betting would be retained by the state and used for water projects. Passing Prop. JJ would not impact individuals’ taxes or tax refunds under Colorado’s Taxpayer’s Bill of Rights.</p><p>Sports betting net revenue — which is profit after paying federal taxes and winning bets — is taxed by the state at 10%. The state in budget year 2023-2024 collected $29.9 million in sports betting taxes. Under current law, it must return any amount over the $29 million cap to gambling operators.</p><script id="53dc615cb2ec4b408494411ccfeda4f2"> (new Image()).src = 'https://capi.connatix.com/tr/si?token=f384b842-c773-40a8-96ff-929756153fae&cid=1ffe15d6-eb53-11e9-b4d2-06948452ae1a'; cnx.cmd.push( function() { cnx( { playerId: "f384b842-c773-40a8-96ff-929756153fae" } ).render( "53dc615cb2ec4b408494411ccfeda4f2" ); } );</script><p>If Prop. JJ passes, that cap would go away.</p><p>Tax revenue from sports betting is estimated to be $30.2 million in budget year 2024-2025 and $31.5 million the following year, according to the Blue Book. The passage of Prop. JJ would yield an extra $3.7 million for water projects in those years.</p><div class="dfp-ad dfp-cube_article" id="div-gpt-ad-cube_article" style="visibility:hidden"> <div class="htlad-cube_article" data-unit="denverpost.com/politics/election/cube_article" data-targeting=""></div> </div><h4>Where would money from Prop. JJ go?</h4><p>The money would pay for water projects outlined in the <a href="https://cwcb.colorado.gov/colorado-water-plan">Colorado Water Plan</a>, such as increasing water storage capacity and drought planning.</p><p>The <a href="https://cwcb.colorado.gov/">Colorado Water Conservation Board</a> distributes money for water projects. Last year, it funded projects to improve water infrastructure and improve the efficiency of water use in homes and in agriculture.</p><h4>What do supporters say?</h4><p><a href="https://yesonjj.com/">Supporters of the proposition</a> span political parties, industries and Colorado’s urban and rural communities. Supporters include the Colorado Cattlemen’s Association, Conservation Colorado, Business for Water Stewardship, and Democratic and Republican lawmakers from major cities and rural Colorado.</p><p>“Voting Yes on JJ will enhance our water resources, providing the necessary resources to safeguard our water for future generations,” Erin Karney, executive vice president of the Colorado Cattlemen’s Association, said in a news release. “It’s an investment in the long-term sustainability of our ranching heritage and a commitment to the communities that depend on it.”</p><aside class="related right"><h2 class="widget-title" data-curated-ids="" data-relation-type="automatic-primary-tag">Related Articles</h2><ul><li> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <a class="article-title" href="https://www.denverpost.com/2025/02/14/colorado-springs-recreational-marijuana-ballot-measure-supreme-court/" title="Colorado Springs voters’ approval of recreational weed will stand after courts invalidate repeal attempt"> <span class="dfm-title metered"> Colorado Springs voters’ approval of recreational weed will stand after courts invalidate repeal attempt </span> </a> </li><li> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <a class="article-title" href="https://www.denverpost.com/2025/01/19/donald-trump-colorado-abortion-rights-reproductive-health-care-birth-control/" title="Fearing rights “still could be taken away,” Coloradans stock up on morning-after pills, schedule surgeries ahead of Trump"> <span class="dfm-title metered"> Fearing rights “still could be taken away,” Coloradans stock up on morning-after pills, schedule surgeries ahead of Trump </span> </a> </li><li> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <a class="article-title" href="https://www.denverpost.com/2025/01/04/lauren-boebert-congress-bills-passed-3rd-district-4th-fish-mesa/" title="Lauren Boebert delivers last-minute legislation for former Colorado district as she’s sworn in for new one"> <span class="dfm-title metered"> Lauren Boebert delivers last-minute legislation for former Colorado district as she’s sworn in for new one </span> </a> </li><li> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <a class="article-title" href="https://www.denverpost.com/2024/12/31/greg-lopez-lauren-boebert-colorado-congress-4th-district-vacancy/" title="Greg Lopez, Colorado’s six-month congressman, steps aside for Lauren Boebert after role in GOP power play"> <span class="dfm-title metered"> Greg Lopez, Colorado’s six-month congressman, steps aside for Lauren Boebert after role in GOP power play </span> </a> </li><li> <div class="entry-section"><a href="https://www.denverpost.com/politics/election/">Election | </a></div> <a class="article-title" href="https://www.denverpost.com/2024/12/11/colorado-election-password-leak-audit-secretary-state-jena-griswold/" title="Editorial: Democrats should stop protecting their own and support an audit of the Secretary of State’s Office"> <span class="dfm-title metered"> Editorial: Democrats should stop protecting their own and support an audit of the Secretary of State’s Office </span> </a> </li></ul></aside><p>The organization representing casinos and sports-betting operators in Colorado does not object to the amendment, Colorado Gaming Association executive director Peggi O’Keefe wrote in an email.</p><h4>What do opponents say?</h4><p>No organizations have come out in opposition to Prop. JJ.</p><p>One argument against the proposition, as outlined in the Blue Book, is that “if the state refers a ballot question with a limited amount of new taxes” — as happened in 2019 — “it should stay within that limit.”</p><p><em><a href="https://myaccount.denverpost.com/dp/preference">Stay up-to-date with Colorado Politics by signing up for our weekly newsletter, The Spot.</a></em></p></p> <div class="time mng-originally-published">Originally Published: <time datetime="2024-10-09 05:45:57">October 9, 2024 at 5:45 AM MDT</time></div></div></div><div class="article-bottom-share"><div class="article-share" id="sharing-bottom" ><div class="sharedaddy sd-sharing-enabled"><div class="robots-nocontent sd-block sd-social sd-social-icon sd-sharing"><h3 class="sd-title">Share this:</h3><div class="sd-content"><ul><li class="share-facebook"><a rel="nofollow noopener noreferrer" data-shared="sharing-facebook-6743195" class="share-facebook sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=facebook" target="_blank" title="Click to share on Facebook" ><span></span><span class="sharing-screen-reader-text">Click to share on Facebook (Opens in new window)</span></a></li><li class="share-reddit"><a rel="nofollow noopener noreferrer" data-shared="" class="share-reddit sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=reddit" target="_blank" title="Click to share on Reddit" ><span></span><span class="sharing-screen-reader-text">Click to share on Reddit (Opens in new window)</span></a></li><li class="share-twitter"><a rel="nofollow noopener noreferrer" data-shared="sharing-twitter-6743195" class="share-twitter sd-button share-icon no-text" href="https://www.denverpost.com/2024/10/09/colorado-proposition-jj-sports-betting-revenue-water-projects-election/?share=twitter" target="_blank" title="Click to share on Twitter" ><span></span><span class="sharing-screen-reader-text">Click to share on Twitter (Opens in new window)</span></a></li><li class="share-end"></li></ul></div></div></div></div> <div id="trust-dropdown" class="dfm-trust-indicators-footer-links"> <div class="trust-indicator-drop"> <img tabindex="0" class="trust-btn" src="https://www.denverpost.com/wp-content/plugins/dfm-trust-indicators/static/images/Trust-Logo-Horizontal.svg" alt="The Trust Project Logo"> <span class="icon-arrow-down" id="icon-caret-trust" > </span> </div> <div id="trust-indicator" class="trust-dropdown-content"> <ul id="menu-trust-indicators" class="menu"><li id="menu-item-3929625" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-3929625"><a href="https://www.denverpost.com/policies-and-standards/">Policies</a></li> <li id="menu-item-3929633" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-3929633"><a href="https://www.denverpost.com/report-an-error/">Report an Error</a></li> <li id="menu-item-3929634" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-3929634"><a href="https://www.denverpost.com/contact-us/">Contact Us</a></li> <li id="menu-item-3929636" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-3929636"><a href="https://www.denverpost.com/news-tips/">Submit a News Tip</a></li> </ul> </div> <script> const dropdownToggle = () => { const arrow = document.getElementById( 'icon-caret-trust' ); 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Jason Crow told reporters Monday during a news conference outside the sprawling, windswept facility." subtitle="" class="lazyload size-more_news" data-sizes="auto" data-src="https://www.denverpost.com/wp-content/uploads/2025/02/TDP-L-Immigration-Aurora-RJS-8733.jpg?w=507" data-srcset="https://www.denverpost.com/wp-content/uploads/2025/02/TDP-L-Immigration-Aurora-RJS-8733.jpg?w=507 620w,https://www.denverpost.com/wp-content/uploads/2025/02/TDP-L-Immigration-Aurora-RJS-8733.jpg?w=311 380w,https://www.denverpost.com/wp-content/uploads/2025/02/TDP-L-Immigration-Aurora-RJS-8733.jpg?w=405 500w,https://www.denverpost.com/wp-content/uploads/2025/02/TDP-L-Immigration-Aurora-RJS-8733.jpg?w=442 540w" ></div> </a> </figure> <div class="article-info"> <header> <h3 class="entry-title"> <div class="entry-section"><a href="https://www.denverpost.com/news/colorado/">Colorado News | </a></div> <a class="article-title" href="https://www.denverpost.com/2025/02/03/ice-aurora-jason-crow-buckley-immigration-raids/" title="Buckley Space Force Base won’t house immigrant detainees after all, U.S. Rep. Jason Crow says — but ICE is mum"> <span class="dfm-title metered"> Buckley Space Force Base won’t house immigrant detainees after all, U.S. Rep. 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