Colorado just turned football fever into millions for clean water. The state’s sports betting industry posted its highest tax revenue ever in 2025, powered by a record-breaking NFL season and a Super Bowl Sunday that saw bettors risk more than $40 million on the big game alone.
The numbers are stunning: operators kept a 28.89% house win on the Championship, the highest hold rate in years, pushing total tax collections well past previous records.
Super Bowl Alone Delivered $40.7 Million in Bets
Colorado bettors wagered $40.7 million on the NFL Championship game, according to final numbers released by the Division of Gaming this week.
Casinos paid out $29 million to winning tickets. That left operators with an $11.7 million profit on the game alone, the strongest hold percentage Colorado has ever recorded for a single sporting event.
Christopher Schroder, director of the Division of Gaming, called the results “through the roof.”
“We knew the NFL playoffs would be big, but these numbers exceeded even our most optimistic projections,” Schroder told reporters. “January is shaping up to be the highest-grossing month for tax revenue in state history.”
Total sports betting handle across all events in January topped previous records by nearly 7%, continuing a steady climb that began when voters legalized the industry in 2019.
Where Every Tax Dollar Actually Goes
Colorado remains the only state in America that sends the bulk of sports betting taxes directly to water projects.
Every dollar of net revenue is taxed at 10%. Most of that money flows straight to the Colorado Water Conservation Board to fund grants under the state’s Water Plan.
Since legalization in 2020, sports betting has now sent more than $175 million to water projects statewide, state officials confirmed this week.
Recent grants paid for:
• New pipelines in rural communities
• Agricultural efficiency upgrades that save millions of gallons yearly
• Stream restoration work in the Arkansas and Colorado River basins
• Protection of drinking water sources in fast-growing Front Range cities
“Clean water touches every single person in Colorado,” Schroder said. “These betting taxes are now one of our most reliable funding sources for keeping rivers healthy and taps flowing.”
A small portion of the revenue also supports the Division of Gaming’s responsible gambling programs and regulatory oversight.
How Colorado Built the Nation’s Most Unique Betting Model
Voters passed Proposition DD in 2019 by the slimmest margin, 51% to 49%. The deal was simple: legalize sports betting, but send the taxes to fix the state’s growing water crisis.
Five years later, that promise has delivered beyond anyone’s expectations.
Monthly handle has grown from $25 million in May 2020 to regular months above $500 million in 2025. Football remains king. NFL games alone accounted for 42% of all money wagered last season.
Mobile betting deserves much of the credit. More than 95% of bets are now placed on phones, letting Coloradans wager from the couch instead of driving to Black Hawk or Cripple Creek.
“That convenience keeps money in Colorado instead of flowing to Kansas or New Mexico,” Schroder noted.
Responsible Gambling Gets Real Attention
Success comes with responsibility. March is Problem Gambling Awareness Month, and state officials are stepping up efforts.
The Division of Gaming and Colorado Lottery will host their annual event at the Capitol next month, bringing lawmakers together with treatment experts and recovering gamblers.
New tools rolled out this year include:
• Mandatory monthly deposit limit reminders on every app
• “Cool-off” buttons that let players lock themselves out for 72 hours with one tap
• Free self-exclusion lists that now sync across every licensed operator in the state
Anyone needing help can call the national hotline at 1-800-GAMBLER or text “GAMBLE” to 53342 for immediate support.
Colorado’s sports betting boom proves entertainment and public good can go hand in hand. Football fans had their fun, winners collected their payouts, and the state’s rivers and reservoirs got the funding they desperately need.
That’s a win every Coloradan can celebrate.
What do you think, is tying sports betting taxes to water projects the model other states should copy? Drop your take in the comments and tag a friend who bets on the Broncos.
