Colorado Governor Proposes Casino Tax Hike for Childcare Funding

Colorado Governor Jared Polis has put forward a proposal to increase taxes on the state's land-based casinos as part of his final budget plan. The Democratic governor, who will leave office in January, is seeking to raise the effective tax rate on casino revenue from 16.1% to 23%.

The additional revenue generated by the tax increase would be directed toward funding childcare and preschool programs across the state. Polis's budget proposal marks a significant shift in how Colorado funds early childhood education, leveraging the gaming industry to support these initiatives.

The proposed tax hike would apply to Colorado's licensed casino operators, which are currently taxed at a lower effective rate. If approved by the state legislature, the new rate would represent a substantial increase in the tax burden on the industry.

Polis's term-limited departure in January means the proposal will need to gain traction quickly among lawmakers. The governor's budget is typically a starting point for negotiations, and the casino tax increase is expected to face debate from industry stakeholders and legislators.

Supporters of the measure argue that the gaming industry can afford to contribute more to public programs, while opponents may contend that higher taxes could hurt casino competitiveness. The proposal now moves to the Colorado General Assembly for consideration.