After administrative expenses are paid, gaming tax revenue subject to TABOR is deposited in the Limited Gaming Fund, and TABOR-exempt revenue attributable to Amendments 50 and 77 is credited to the Extended Limited Gaming Fund. The gaming tax revenue distribution is shown below.

Casinos’ adjusted gross proceeds reset to zero on July 1, the first day of the state fiscal year.Ĭasinos operating on the Ute Mountain Ute and Southern Ute Indian Reservations in Archuleta, La Plata, and Montezuma counties are not subject to the gaming tax. For example, a casino must pay a 0.25 percent tax on its first $2 million in adjusted gross proceeds, and a 2 percent tax on its next $3 million. Beginning July 1, 2012, adjusted gross proceeds are taxed at accelerating rates following the stepwise schedule shown below. The commission reviews tax rates annually and may raise or lower rates so long as they do not exceed 40 percent.

Tax rates are set by the Colorado Limited Gaming Control Commission, a five-member regulatory body appointed by the Governor. Gaming tax revenue attributed to Amendment 50 and Amendment 77 is not subject to the TABOR limit. Expanded gaming in each community began May 1, 2021. During the same election, the three cities approved local measures to eliminate casino bet limits and give their respective city councils the authority to approve new casino games. In 2020, Colorado voters approved Amendment 77, which allowed the three local gaming cities to approve new casino bet limits and games. In 2009, Colorado voters approved Amendment 50, which allows additional casino games, higher bet limits, and longer hours of operation. Most gaming tax revenue is subject to the TABOR limit on state revenue and spending. For each month of operation, casinos remit gaming taxes to the Division of Gaming in the Department of Revenue by the 15th day of the following month. 1 The gaming tax is levied on casinos’ adjusted gross proceeds, defined as the amount of money collected from gamblers in wagers minus the amount paid to gamblers in winnings. The gaming tax was first levied in 1991 when casino gambling became legal in the municipalities of Black Hawk, Central City, and Cripple Creek.

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