46 Colorado Office of the State Auditor
Exhibit 2.6
Sports Betting Operation Tax Filing Analysis, May 2020 through April 2021
Sampled
Sports
Betting
Operation
1
Total
Wagers
Net Sports
Betting
Proceeds
Reported by
Operation
2
Sports Betting
Tax Liability With
No Operating
Loss Deduction
3
Actual Sports
Betting Tax Paid
With Operating
Loss Deduction
Applied
Difference in Sports
Betting Tax Liability
Due to Operating Loss
Deduction
4
1 $844,523,572 $23,988,946 $2,819,715 $2,613,481 ($206,234)
2 $630,808,828 $20,511,510 $2,079,052 $2,051,151 ($27,901)
3 $530,996,418 $11,383,332 $1,374,340 $1,138,333 ($236,007)
4 $59,400,772 $1,399,939 $209,578 $140,155 ($69,423)
5 $53,452,155 ($1,472,244) $46,466 $0 ($46,466)
6 $44,573,106 $867,183 $126,336 $91,143 ($35,193)
7 $42,128,192 $524,575 $71,721 $52,457 ($19,264)
8 $36,914,839 $1,021,955 $126,851 $102,196 ($24,656)
9 $20,511,540 $2,436,782 $243,678 $243,678 $0
10 $15,582,016 $261,847 $64,175 $36,600 ($27,575)
11 $13,507,824 $876,381 $87,638 $87,638 $0
12 $5,745,930 $276,389 $33,181 $30,995 ($2,187)
13 $4,722,296 ($23,123) $15,276 $15,057 ($219)
14 $4,586,033 ($202,170) $8,756 $857 ($7,900)
15 $4,582,325 ($221,859) $325 $325 $0
16 $4,564,453 ($340,199) $954 $712 ($242)
17 $3,329,681 ($144,324) $5,493 $2,804 ($2,688)
18 $2,419,383 $75,758 $7,576 $7,576 $0
19 $598,352 $124,390 $13,155 $13,155 $0
20 $483,523 $4,405 $512 $440 ($71)
21 $118,737 $18,831 $2,283 $1,904 ($379)
22 $88,009 $497 $1,186 $1,125 ($61)
23 $63,596 $16,818 $1,682 $1,682 $0
24 $14,310 $4,481 $472 $448 ($24)
25 $12,840 $3,719 $372 $372 $0
26 $2,707 ($415) $69 $0 ($69)
27 $253 $248 $25 $25 $0
Total $2,323,731,689 $61,393,652 $7,340,866 $6,634,309 ($706,557)
Source: Office of the State Auditor analysis of GenTax tax filing data from May 2020 through April 2021.
1
One operator that was licensed but did not report any sports betting activity during the year was excluded from this table.
2
Total net sports betting proceeds is the cumulative annual sum of each month’s net sports betting proceeds that operations
reported during the year.
3
Since operations report net sports betting proceeds and pay sports betting tax on a monthly basis, operations might report a
tax liability in months when they report positive net sports betting proceeds but a $0 tax liability when they report negative
sports betting proceeds. Therefore, an operation’s total annual sports betting tax liability might not equal 10 percent of its total
net sports betting proceeds for the year.
4
This amount equals total operating loss deductions that operations applied during the year. This amount was calculated using
the Division’s process, which is calculated by taking 10 percent of an operation’s negative net sports betting proceeds. This
methodology differs from Rule 7.8, which states that the operating loss deduction should be incorporated into the calculation
of net sports betting proceeds. The resulting sports betting tax liability ends up being the same, regardless of which method is
used to calculate the operating loss deduction.