Colorado Governor Jared Polis has proposed raising the effective tax rate on the state's land-based casinos to 23% from 16.1%. The change is estimated to raise $80.2 million a year, with the revenue directed to childcare and preschool programs. The $80.2 million estimate covers the casino change alone, and only Casino.org reports a combined yield of nearly $129 million a year once other "sin taxes" on alcohol and tobacco are included. The plan was first reported on 3 November 2026 and is part of his final budget proposal, because his term ends in January.
Casino.org and GamblingNews.com put the national average casino tax rate at 26%, so the proposed rate would leave Colorado below that figure but closer to it.
The plan also raises the top rate. Higher-earning casinos would pay up to 35%, against a current cap of 27.5%. The two outlets describe the top bracket differently. Casino.org says the 35% cap would apply to the four highest-grossing casinos and gives the current caps as 20% to 27.5%. GamblingNews.com says the 35% rate would apply to casinos earning more than $100 million, while those earning $20 million to $100 million pay at most 27.5%. Elsewhere in the same article, however, GamblingNews.com refers only to "a certain threshold." Casino.org alone reports that those four casinos are most likely all or mostly in Black Hawk, and that assessment is the outlet's own.
Casino.org cites the Colorado Department of Revenue and Division of Gaming for September 2026 figures. By that account, Colorado casinos posted $97.5 million in gaming revenue that month, and $73.9 million of it came from Black Hawk. That puts Black Hawk at roughly 76% of the statewide total. No second outlet reported these numbers.
The budget does not settle whether the increase happens. Casino.org reports that under Colorado's TABOR rules, voters must approve any new tax increase, which means the proposal could become a 2027 ballot initiative. GamblingNews.com says the outcome depends on how legislators respond and that no movement on the issue had been reported.
Casino.org also notes that Colorado voters approved Proposition JJ in 2024, which lets the state keep and spend sports betting tax revenue above the original $29 million cap.
According to the governor's office, quoted by both outlets, average per-pupil funding rose from $8,137 in 2019 to $12,325 today. The office also says the budget adds $154.7 million to the State Share of Total Program funding, including $125 million from the General Fund. According to the office, that would bring per-pupil funding to $12,814, an increase of $488. These are the office's own figures and have not been independently verified.
Subtracting the two quoted per-pupil figures gives $489, while the office's statement as quoted gives $488.
Whether casinos would pass any of the cost to players through table rules or slot payback is not addressed in the facts we have. We do not know, and month-by-month hold and slot payback figures from before and after a rate change takes effect would help answer the question.
Prepared with AI from independent sources and published automatically, without prior editorial review. How we use AI