Colorado preps new regulations after influx of license applications

Colorado’s regulator has received as many as 12 betting license applications since releasing draft regulations in late November and will imminently release a second set of draft rules to meet the huge demand.

Director of the Colorado Gaming Division Dan Hartman told EGR North America the department had taken heed of suggestions presented by its five stakeholder working groups and would provide further details on certain rules.

Hartman also said the Division would simplify its sports betting permit fee requirement to cover license application costs.

In the current regulations a permit fee will be set every year to determine “operational needs” for the department.

“What we heard was that while operators know they have to pay something to be part of the business, they want it to feel a bit simpler so we’re moving that and making it simpler instead of a permit fee for sport,” Hartman said.

On Colorado permitting esports betting, Hartman said: “With the explosion of esports around the world and somewhat in this country, we figure we might as well tackle them all at the same time.

“While we will probably take a conservative approach on it, we want to have the regulations available so we don’t have to go in and redo them,” he said.

He also said a handful of European companies participating in the stakeholder working groups had esports on their radar and wanted to have as much variety as possible in what they can offer bettors.

Final regulations will likely be passed in February after a final meeting of the stakeholder groups, with the first operators to go live in May.

“Licensing rules will go before the commission in January for permanent adoption,” Hartman said.

“Then [we’ll] get staff ready to make sure we’re ready for the testing phase and getting the operators up and going.”

Operators can gain entry to the state via market-access deals with its 33 brick-and-mortar casinos.

They will be taxed at 10% of net betting revenues.