Colorado's Polis Proposes Raising Casino Tax Rate to 23%
Outgoing Governor Jared Polis wants to lift the effective tax rate on Colorado casinos from 16.1% to 23%, with proceeds earmarked for childcare and preschool funding.
Governor Jared Polis has proposed raising taxes on Colorado's land-based casinos as part of his final budget before leaving office in January, according to Casino.org News.
The Democratic governor's plan would lift the effective tax rate on the state's gaming venues from 16.1% to 23%, bringing Colorado closer to the national average of 26%, Casino.org reported.
The proposal is projected to generate an additional $80.2 million a year from the gaming industry. Combined with revenue from other so-called sin taxes on alcohol and tobacco, the total new annual haul would reach close to $129 million.
Polis has made education funding a recurring theme of his tenure. A statement from his office said average per-pupil funding has risen by more than 50% since he took office in 2019, from $8,137 to $12,325 per student. The new budget would lift the State Share of Total Program funding by $154.7 million, including $125 million from the General Fund, pushing average per-pupil funding to $12,814 — an increase of $488 on the current school year.
Because Colorado's Taxpayer's Bill of Rights requires voter approval for any new tax increase, the casino tax plan cannot take effect through the budget process alone. Casino.org noted that it would likely need to go before voters as a 2027 ballot initiative.
Highest earners face steepest rise
Colorado currently taxes land-based casinos on a sliding scale, with caps ranging from 20% to 27.5% depending on annual revenue, for venues earning between $20 million and $100 million. Polis's plan would raise the top cap to 35% for the state's four highest-earning casinos, a group Casino.org said is likely made up entirely of Black Hawk properties.
Figures from the Colorado Department of Revenue and the Division of Gaming showed statewide casino revenue of $97.5 million in September 2026, with Black Hawk casinos accounting for $73.9 million of that total. Black Hawk, home to more than a dozen gaming venues, is described by Casino.org as one of the fastest-growing casino markets in the country, with operators including Bally's, Caesars Entertainment, Monarch Casino & Resort and Penn Entertainment all present in the city.
With the proposal only a day old at the time of Casino.org's report, the outlet cautioned against predicting its chances at the ballot box. It pointed, however, to signs of voter appetite for tax increases in the state: Coloradans were voting the same day on a progressive income tax scheme and various local tax measures. In 2024, voters approved Proposition JJ, which allowed the state to keep and spend sports betting tax revenue above the original $29 million cap.