Colorado Gov. Jared Polis wants the effective tax rate on the state's land-based casinos raised to 23% from 16.1%, Casino.org reported.
The plan sits in his final budget request, and the money would go to childcare and preschool programs. It would tax venue revenue, and the reporting describes no change to the games offered.
Polis leaves office in January. Under Colorado's Taxpayer's Bill of Rights (TABOR), voters must approve any new tax, so Casino.org said the measure could reach the ballot in 2027.
The Sum & Substance (tsscolorado.com) reported that the governor is explicitly asking for a 2027 ballot measure.
What the Plan Would Collect
Casino.org estimated the gaming increase at $80.2 million a year. Combined with higher tobacco and nicotine taxes, The Sum & Substance put the total at $128.9 million annually.
Casino.org described the 23% rate as a step toward a national average of 26%. The Sum & Substance gave that average as 26.5%.
Colorado now caps casino tax rates between 20% and 27.5% for venues earning $20 million to $100 million a year. Polis would raise the top cap to 35% for the four highest-earning casinos.
Casino.org said most or all of those four are in Black Hawk.
The state's gaming division data shows Colorado casinos earned $97.5 million in gaming revenue in September 2026. Black Hawk properties accounted for $73.9 million of it.
Casino.org lists Bally's, Caesars Entertainment, Monarch Casino & Resort and Penn Entertainment among the operators there.
Industry Response and the Childcare Case
The Sum & Substance said the proposal may have caught the state's $4.2 billion gaming industry off guard. The Colorado Gaming Association said it is working to understand the plan.
It will discuss the idea with Polis's successor next year. The candidates were Democrat Phil Weiser, Republican Victor Marx and independent Greg Lopez.
Polis argues that childcare is hard to find in Colorado and expensive, and that long waiting lists for assistance keep some young parents out of work.
The Sum & Substance said a separate proposal to convert Pinnacol Assurance, the state workers' compensation insurer, would also send 25% of its proceeds to a new childcare assistance fund.
Lawmakers have resisted that idea in each of the past two budget years.
A Request, Not a Decision
The casino tax is one piece of a $51.3 billion budget plan. The Colorado Sun reported that the governor's budget is only a recommendation.
The legislature's Joint Budget Committee writes the actual budget over the coming months. With Polis leaving, the Sun said his request may carry even less sway than usual.
The plan also proposes holding Medicaid spending growth to 4.3%. That is the most contested part of the package, according to The Sum & Substance.
Polis said at a Monday news conference that the budget does not cut healthcare funding.
The Colorado Sun said Polis's successor will be sworn in on Jan. 12. The governor said he will present an updated budget request in early January.
Colorado voters have raised gambling revenue questions before. In 2024 they approved Proposition JJ, which lets the state keep sports betting tax revenue above the original $29 million cap.
Photo: The Sum and Substance (all rights reserved)