Colorado
General Assembly, Legislative Council
| The Legislative Council takes no position with respect to the merits of the proposals. In listing the "arguments for" and "arguments against", the Council is merely describing the arguments relating to the proposals. The quantity or quality of the "for" or "against" paragraphs listed for the proposals should not be interpreted as an indication of the Legislative Council position. |
Forward to Text of Amendment 18
The proposed amendment to the Colorado Constitution:
The Ute Mountain Ute tribe and the Southern Ute Indian tribe of southwestern Colorado operate casinos on reservation lands in accordance with federal law. Because tribal sovereignty supersedes state law, such operations are exempt from state taxation and supervision. Each tribe operates a casino with a maximum bet of five dollars.
Distribution of revenue. Moneys collected from the taxation of gaming proceeds minus payouts to players and administrative expenses are deposited in the state limited gaming fund. The revenue is distributed as follows: 50 percent to the state general fund; 28 percent to the state historical fund, of which 80 percent is allocated for the preservation of historical sites statewide, and 20 percent for historic preservation sites in gaming communities; 12 percent for the counties in which casinos are located; and 10 percent for the cities in which casinos are located. Trinidad and Las Animas County will receive money under this distribution formula.
Administration. Limited gaming is administered by the Limited Gaming Control Commission which consists of five members appointed by the Governor and approved by the Colorado Senate. The commission is responsible for administering limited gaming operations, issuing licenses to casinos, collecting device fees, and determining the annual tax rate on gaming revenues.
Tax rates. Gaming proceeds are taxed by the state. The maximum tax rate established by the Colorado Constitution is 40 percent. For October 1995, through September 1996, casinos are taxed at the following rates, which are based on gaming proceeds.
| Accumulated Monthly Proceeds | Tax Rate |
| $5 million or more | 18 percent |
| $4 million to $5 million | 15 percent |
| $2 million to $4 million | 8 percent |
| Up to $2 million | 2 percent |
State revenues. State tax revenue from Colorado casino operations has steadily increased since limited gaming began in October 1991. For example, in fiscal year 1993-94, the state received $39.8 million in gross tax revenue, while, in fiscal year 1995-1996, the state received $50.8 million. Black Hawk produced $30.2 million of the FY 1995-1996 total; Central City, $11.4 million; and Cripple Creek, $9.2 million.
2) Statewide passage of this amendment simply gives the voters in Trinidad the opportunity to decide whether to allow limited gaming in their city. The final decision on limited gaming will be made by the citizens of Trinidad, the people who are directly affected by the measure.
3) The proposal will assist in preserving historic buildings in Trinidad by providing an economic reason for rehabilitating largely vacant historic buildings. Historic sites in Trinidad will be eligible to compete for a portion of the gaming tax revenue set aside for preservation of historic sites in gaming communities. Since 1993, $30.9 million of preservation funds have financed 874 historic preservation projects across the state.
2) There are already limited gaming opportunities in Colorado. Currently, three cities and two Indian reservations allow limited gaming. If another city is authorized to offer limited gaming, more communities will want to use gambling as an economic tool. This is another step toward statewide gambling, which may not be in the best interest of Colorado.
3) Allowing limited gaming in Trinidad will have a serious effect on established gambling businesses in the south central part of Colorado, Cripple Creek in particular. The planned expansion of gaming facilities in Cripple Creek will be threatened by new gaming jurisdictions. Since there are limited dollars available for gambling, expansion of the business to Trinidad will dilute any perceived benefits of gaming to both Trinidad and Cripple Creek.
Forward to Text of Amendment 18
