Bill

HB 25-1311

Deductions for Net Sports Betting Proceeds

2025 Regular Session Introduced by Judy Amabile and 15 co-sponsors

Allows sports-betting operators to deduct specified expenses from gross receipts to determine net sports betting proceeds taxed or distributed by the state.

Governor Signed

WeVote Research Nonpartisan

Bill Summary · HB 25-1311

HB 25-1311 — Deductions for Net Sports Betting Proceeds

Status: Governor Signed (5/15/2025)
Introduced: 3/28/2025

Summary (short)

HB 25-1311, titled "Deductions for Net Sports Betting Proceeds," was enacted in May 2025. The bill’s title indicates it changes how “net sports betting proceeds” are calculated by allowing certain deductions from sports-betting receipts before the tax or distribution calculation. The bill’s full text is not provided here; this summary explains likely intent, typical types of provisions such a bill would contain, who would be affected, and the procedural timeline. For exact statutory language and fiscal impacts, consult the official bill text and fiscal note.

Purpose and intent

Based on the title, the bill’s primary intent is to clarify or expand what amounts may be deducted from gross sports-betting receipts to arrive at the taxable or reportable figure called “net sports betting proceeds.” The goal of such changes is typically to align taxable bases with industry practices, address operator-administrative issues, or adjust state revenue from sports wagering.

Key provisions (expected / typical)

Because the bill text is not included, the following are commonly found provisions in similar measures and likely areas HB 25-1311 addresses:
- Define or revise “net sports betting proceeds” for tax, regulatory, or distribution purposes.
- Specify allowable deductions from gross sports-betting receipts (examples: winnings paid to bettors, promotional credits/bonuses, transaction fees, taxes paid to other jurisdictions, or approved operating expenses).
- Set documentation, reporting, and audit requirements for claiming deductions.
- Establish effective dates and transitional rules for previously filed returns or ongoing reporting periods.
- Provide enforcement, penalty, or rulemaking authority for the regulatory agency overseeing sports wagering.

(These are illustrative categories — consult the enacted bill for the exact list of permitted deductions and definitions.)

Who is affected

Sports-betting operators (online and retail) — could see changes to taxable base and reporting requirements.
State and local governments — potential changes in revenue from sports-betting taxes and distributions (which may fund general revenue, problem-gambling programs, education, etc.).
Regulators (state gaming commission or equivalent) — new compliance, oversight, and rulemaking responsibilities.
Tribal gaming entities or interstate operators, if the change interacts with compacts or interstate agreements.

Fiscal and policy implications

Allowing additional deductions generally reduces the taxable base, which can lower state and local tax receipts unless offset by higher rates or other provisions.
Could affect funding streams tied to sports-betting revenue (programs or transfers established in prior law).
May shift compliance costs to operators or regulators depending on documentation and audit requirements.

Procedural timeline

Introduced in House: 3/28/2025 (assigned to Finance)
Passed House (third reading): 4/28/2025
Senate proceedings/committee amendments: late April–early May 2025
Both chambers signed: 5/12/2025 (President of the Senate and Speaker of the House)
Sent to Governor: 5/12/2025
Governor signed into law: 5/15/2025

Next steps / where to find details

To understand precise legal and fiscal changes, consult:
- The enacted bill text and any engrossed/amended versions
- The official fiscal note and bill analyses prepared by legislative staff
- Rulemaking or guidance issued by the state gaming regulatory agency

If you want, I can locate and summarize the enacted bill text and fiscal note or extract the exact language defining permitted deductions.

Compiled from official sources — confirm details with the bill’s official record.