Colorado Sports Betting Tax Calculator
Colorado taxes gambling winnings as ordinary income at 4.40% flat rate. Sports betting is legal (online and retail) in Colorado with operators including FanDuel, DraftKings, BetMGM. Sports betting legalized via ballot measure in 2019. One of the most competitive online markets.
Calculate Your Colorado Sports Betting Tax
2026 rules: 90% loss deduction cap applies (OBBBA)
Your salary, wages, and other non-gambling income
Losses can only be deducted if you itemize deductions
You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.
Tax Breakdown
W-2G Form: Likely Required
Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.
Federal Withholding
$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.
Colorado Gambling Tax Key Facts
- ✓State income tax: 4.40% flat rate
- ✓Sports betting: legal (online and retail)
- ✓Available sportsbooks: FanDuel, DraftKings, BetMGM, Caesars, BetRivers, PointsBet
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓4.4% flat tax rate on all income
How Sports Betting Taxes Work in Colorado
Colorado taxes gambling winnings as ordinary income at a flat 4.40% rate. Your gambling winnings are added to all other income and taxed accordingly.
Colorado allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.
Colorado Allows Gambling Loss Deductions
Colorado follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Colorado Tax Example
A single filer in Colorado earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Colorado
You must be physically located within Colorado to place bets on these platforms.
Recent Colorado Gambling Tax Changes
Sports betting legalized via ballot measure in 2019. One of the most competitive online markets.
Colorado Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Colorado?
Colorado taxes gambling winnings at 4.40% flat rate on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.
Is sports betting legal in Colorado?
Yes, sports betting is legal (online and retail) in Colorado. Licensed operators include FanDuel, DraftKings, BetMGM, Caesars, BetRivers, PointsBet. You must be physically located within Colorado borders to place bets.
Can I deduct gambling losses in Colorado?
Yes, Colorado allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.
Colorado Tax Authority
For official tax guidance specific to Colorado, contact the state tax authority:
https://tax.colorado.gov/↗Calculate Your Colorado Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Colorado.
Full Tax Calculator