Colorado Gov. Polis Proposes Boosting Casino Taxes

In his final budget proposal, Gov. Jared Polis (D-CO) proposed lifting taxes on the state’s casinos in an effort to bolster funding for childcare and preschool programs.

Polis, whose term ends in January, is proposing lifting the effective tax rate on Colorado’s land-based gaming venues to 23% from 16.1%. If approved, the new percentage would move the state closer to the national average of 26%. It’s estimated the new tax could raise $80.2 million per year from the gaming industry and nearly $129 million annually when combined with other “sin taxes” (alcohol and tobacco). Education funding has been a point of emphasis for Polis since he took office in 2019.

Under Colorado’s taxpayer bill of rights (TABOR), voters in the state must approve any new tax increase, indicating that the Polis casino tax proposal could become a 2027 ballot initiative.

Top Colorado Casinos Could Be Pinched

Colorado currently has tax caps ranging from 20% to 27.5% on land-based gaming venues earning between $20 million and $100 million annually. The Polis plan calls for lifting the highest cap to 35% on the state’s four highest-earning casinos.

It’s likely most if not all four of those venues are in Black Hawk. Data from the Colorado Department of Revenue and Division of Gaming indicate that casinos in the state posted $97.5 million in gaming revenue in September 2026 with Black Hawk properties accounting for $73.9 million of that tally.

Home to more than a dozen gaming venues, Black Hawk is one of the fastest-growing casino markets in the country. Well-known operators in the city include Bally’s, Caesars Entertainment, Monarch Casino & Resort and Penn Entertainment.

Assessing Odds Polis’ Proposal Is Approved

Given that the Polis casino tax proposal is merely a day old, putting firm odds on its future success at the polls may be a fool’s errand.

However, there is evidence indicating that there is some appetite in the state for higher taxes in varying forms. As voters there head to the polls today, they’re considering proposals on a progressive income tax scheme as well as a variety of local tax proposals.

In 2024, Colorado voters approved Proposition JJ, which allows the state to retain and spend sports betting tax revenue in excess of the original cap of $29 million.