Colorado, the mountainous state is home to many adventurous and entrepreneurial people. Anchoring its establishment in the 1858–1859 Gold Rush, this state has had a rich history of being the Wild West of wagering long before the thriving gambling market in place today. To truly appreciate the modern betting scene in Colorado today, it is necessary to trace the roots of gambling and understand the history of betting in Colorado.

The History of Gambling in Colorado

The gambling market in Colorado was pioneered by a cautious approach to gambling regulation. The industry has made historical milestones and experienced significant legal changes to become what it is today. Some of these historical timelines are recorded in:

The 1800s

The gold rush of the 19th century brought hundreds of fortune seekers to the state of Colorado and as the population steeled and established the town, so did saloons, which served as social hubs for miners crop up. These saloons run small-scale lotteries and local betting pools for workers’ recreational purposes. At this time, the gambling scene was unregulated not only in Colorado but across the United States as well.

The 1990s

The 20th century ushered in the era of gambling prohibition in the U.S. The nationwide wave of clamping down on gambling saw most of the informal gambling operations in Colorado either shut down or move their operations underground to avoid run-ins with authorities. These restrictions affected the gambling market in Colorado and the local economies of these mining towns.

In a bid to boost the state’s local economy, Colorado legalized limited-stakes gambling in three towns in 1991. This historic move was pivotal in reintroducing gambling as a legal activity and promoting responsible gambling while boosting the local economy. The towns of Black Hawk, Central City, and Cripple Creek were the first to experience the revitalization that came with the return of gambling.

Additionally, the Native American tribes in Colorado under the Indian Gaming Regulatory Act of 1988 had established tribal casinos which also contributed to the gambling market in the state. During this era, casinos could not open all day, and to promote responsible gambling players could not bet more than $5. Today there are 13 land-based casinos in Black Hawk, 13 in Cripple Creek, and 8 in Central City.

The 2000s

While the internet was taking the world by storm in the 2000s and online gambling was gaining popularity, gambling in Colorado remained highly restrictive. Progress was made in 2000 when a referendum allowed the sale of interstate lotteries such as Powerball and Mega Millions adding to the permitted gambling options of slots, poker, and blackjack. The next significant change in the gambling market in Colorado happened in 2009, where through an amendment the maximum amount for betting was increased to $100 and casinos were allowed to stay open 24 hours a day. Additionally, roulette and craps were added to the list of permitted gambling games.

Almost a decade later, in 2019, Colorado passed Proposition DD following a public vote to allow the legalization of sports betting in the state. In the months that came, regulations were set, and existing gaming parties applied for licenses and waited for their approval before the first online sportsbooks went live on May 1, 2020. This historical development is the foundation of the modern era of gambling in Colorado and the gambling market which features at least 11 land-based operators and 15 online sportsbooks licensed to operate in the state.

The Impact of Betting Legalization in Colorado

The legalization of online gambling in the state of Colorado in 2020 has had a significant impact both economically and socially.

The Economic Impact

The economic impact of online gambling in Colorado has been one of the most immediate and measurable impacts following legalization. On the first month of online gambling legalization, May 2020, the gambling industry in Colorado made $2,565,729 in revenue. By the end of 2020 in December, the industry’s revenue for the month stood at $17,151,867. This upward trajectory continued with $4,532,970,230.31 being collected in the fiscal year 2021-2022 and has continued to do so.

Beyond increased revenue, the gambling market in Colorado has created more jobs directly within the industry and indirectly through related sectors such as entertainment, technology, and hospitality. The industry also generates substantial tax revenue for the state which is earmarked for specific purposes such as water conservation projects that align with Colorado’s environmental goals.

This successful trajectory of the gambling market in Colorado following the legalization regulation of betting has also been experienced in other states in the U.S. and even outside that took the same action. For instance, in Canada, the province of Ontario legalized betting in April 2022. Since then the province’s gambling market including the online casino Ontario players have more than doubled their revenue. In Q1 of 2022, the Ontario gambling industry made $162 million in revenue; in the same period in 2023, the revenue jumped to $545 million. Following the legalization in 2022, the $162 million in revenue in Q1 increased to $545 million in Q4 of the same year.

The Social Impact

Gambling legalization in Colorado has helped change the perception of online gambling in society. Betting is now more socially acceptable and has become normalized allowing for conversations on healthy and responsible gambling. Furthermore, for licensing, the state requires gambling providers to offer resources and tools that promote responsible gambling behaviors to gamblers to help mitigate any potential negative impacts.

The social acceptance of betting has also increased the visibility of betting platforms through advertisements and sponsorship deals with major sports teams.

Today Colorado is a premier gambling destination. The state has over 40 casinos that run 24/7 offering a wide variety of games, including slot machines, poker, blackjack, and roulette to enjoy as the rocky mountains of Colorado paint a breathtaking backdrop. On the other hand, the legalization of online betting has created a competitive landscape for sportsbooks, propelling innovation in the gambling market to offer gamblers diverse options and improve the industry.

John Mali Director of Media Relations

Director of Media Relations at AboutBoulder.com

john@aboutboulder.com