Report on the Socio-Economic and Sustainable Development Impacts of Legalized Sports Betting in Colorado

Economic Growth and Revenue Generation (SDG 8)

Since its legalization in 2019, the sports betting industry in Colorado has demonstrated significant economic activity, contributing to the state’s growth. The sector has consistently broken records, reflecting a robust new revenue stream.

• In the 2024 fiscal year, total wagers exceeded $6 billion.
• This activity generated approximately $37 million in tax revenue for the state.
• American football was the second most popular sport for betting, with $851 million wagered.
• Projections from the Colorado Division of Gaming indicate a potential for another record-breaking year based on current growth rates.

Contribution to Clean Water and Sanitation (SDG 6)

A primary achievement of Colorado’s sports betting legislation is the direct allocation of tax revenue toward critical environmental infrastructure, directly supporting United Nations Sustainable Development Goal 6: Clean Water and Sanitation.

• All tax revenue generated from sports betting is directed to the Colorado Water Conservation Board.
• These funds are earmarked to ensure the availability and sustainable management of water, including the provision of clean drinking water for all residents.
• The revenue supports a variety of water conservation projects and initiatives managed by the board, contributing to the state’s long-term water security.

Addressing Public Health and Well-being (SDG 3)

While economically beneficial, the state acknowledges the potential negative health impacts associated with gambling. In alignment with SDG 3, which promotes good health and well-being, Colorado has implemented measures to address and mitigate the risks of gambling addiction.

• Gambling disorder is recognized by the American Psychological Association as a non-substance-related disorder, highlighting its significance as a public health concern.
• Modern challenges include targeted advertising, AI, and algorithms that can increase the risk of addiction for vulnerable individuals.
• The Colorado Division of Gaming works with operators to promote responsible gambling and provide user-controlled safety measures.

Early Warning Signs and Mitigation Strategies

Licensed professional counselors identify several indicators of problematic gambling. The state and its partners advocate for awareness and provide tools for responsible participation.

1. An individual’s mood or general attitude becomes dependent on winning or losing bets.
2. A feeling of losing control over one’s gambling activities.
3. Difficulty tracking or managing the amount of money being spent on betting.

• Mitigation Tools: Online betting platforms offer features allowing users to set limits on wagers, deposits, and time spent gambling. A self-exclusion option is also available.
• Public Awareness: September is recognized as Responsible Gaming Education Month to promote safe practices.
• Support Resources: Coloradans can access resources through Bet Smart Colorado and the 1-800-GAMBLER hotline.

Fostering Strong Institutions and Community Engagement (SDG 16 & SDG 11)

The establishment of a regulated sports betting market demonstrates Colorado’s commitment to building effective and accountable institutions (SDG 16). The framework ensures that economic activity is managed transparently for public benefit while also providing a regulated avenue for social engagement (SDG 11).

• The Colorado Division of Gaming acts as a strong regulatory institution, overseeing the industry to ensure fairness and compliance.
• The regulated system provides a safe, in-state option for residents, channeling economic activity that might otherwise go to unregulated markets or other states.
• On a social level, sports betting is noted as a modern avenue for building community and connection among fans, enhancing engagement with teams and players.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article on sports betting in Colorado connects to several Sustainable Development Goals (SDGs) by discussing its economic, social, and environmental impacts.

   • SDG 3: Good Health and Well-being: The article extensively covers the health implications of gambling, specifically addiction. It mentions that gambling is a “non-substance-related disorder” recognized by the American Psychological Association and discusses early warning signs, such as a person’s mood being “influenced by whether or not you won or lost any bets.” The focus on promoting “safe and responsible gambling practices” and providing resources like “Bet Smart Colorado” and “1-800-GAMBLER” directly relates to ensuring healthy lives and promoting well-being.
   • SDG 6: Clean Water and Sanitation: A direct link to this goal is established when the article explains how the tax revenue from sports betting is used. It explicitly states that the nearly “$37 million in tax revenue” goes “directly to the Water Conservation Board to ensure that all of us have clean drinking water.” This demonstrates a specific funding mechanism for water resource management.
   • SDG 8: Decent Work and Economic Growth: The article highlights the economic activity generated by the legalized sports betting industry. It mentions “over $6 billion in betting wages were made in 2024,” which contributes to the state’s economy. The creation of a “regulated sports betting operation” represents the formalization of an economic sector, contributing to overall economic growth.
   • SDG 17: Partnerships for the Goals: The article implies the existence of multi-stakeholder partnerships to address the challenges of gambling. It mentions the “Responsible Gaming Education Month,” organized by the American Gaming Association, which works with “state partners to promote responsible gambling.” This collaboration between a civil society organization (American Gaming Association) and government bodies (state partners) is a clear example of a partnership aimed at achieving a common goal.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the issues discussed, the following specific SDG targets can be identified:

   • Target 3.5: Strengthen the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol. Although gambling is a non-substance addiction, this target’s principle of strengthening prevention and treatment is directly applicable. The article’s focus on responsible gambling measures, providing resources for help (1-800-GAMBLER), and raising awareness through “Responsible Gaming Education Month” aligns with the goal of preventing and treating harmful addictive behaviors.
   • Target 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all. The article directly supports this target by stating that tax revenue from sports betting is used to fund the Water Conservation Board’s efforts “to ensure that all of us have clean drinking water.” This shows a clear financial commitment to water quality and access.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The legalization and regulation of sports betting in Colorado can be seen as a form of economic diversification, creating a new, formal revenue stream for the state. The article notes the industry continues to “break records,” indicating its growing economic contribution.
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article points to such a partnership where the American Gaming Association collaborates with “state partners” to promote responsible gambling. Furthermore, the Colorado Division of Gaming “works with online operators to allow users to regulate their activity,” indicating a public-private partnership to achieve health and well-being goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article contains several explicit and implicit indicators that can be used to measure progress:

   • For SDG 3 (Target 3.5):
     • Availability of prevention and treatment services: The mention of resources like “Bet Smart Colorado” and the “1-800-GAMBLER” hotline serves as an indicator of the availability of support systems for gambling addiction.
     • Implementation of responsible gambling policies: The article mentions that the Division of Gaming works with operators to provide tools for users to “regulate their activity,” such as setting a “wage or a buying amount, even a time limit,” or to “self-exclude.” These are measurable policy implementations.
   • For SDG 6 (Target 6.1):
     • Amount of water-related official development assistance (a proxy): The article provides a precise financial figure: “nearly $37 million in tax revenue” was generated in 2024 and directed to the Water Conservation Board. This amount serves as a direct indicator of financial resources mobilized for clean water initiatives.
   • For SDG 8 (Target 8.2):
     • Annual growth rate of real GDP per capita (a proxy): The economic figures provided, such as “over $6 billion in betting wages” and a “nealy 10% increase from the total handle for July in 2024,” act as indicators of the economic contribution and growth of this specific sector within the state’s economy.
   • For SDG 17 (Target 17.17):
     • Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks (a proxy): The existence of the “Responsible Gaming Education Month,” a collaborative effort between the American Gaming Association and state partners, is a qualitative indicator of an active multi-stakeholder partnership focused on a specific social goal.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

   SDGs	Targets	Indicators
   SDG 3: Good Health and Well-being	3.5: Strengthen the prevention and treatment of substance abuse.	Availability of support resources (Bet Smart Colorado, 1-800-GAMBLER). Implementation of self-regulation tools (wage, time limits, self-exclusion). Public awareness campaigns (Responsible Gaming Education Month).
   SDG 6: Clean Water and Sanitation	6.1: Achieve universal and equitable access to safe and affordable drinking water for all.	Amount of public finance allocated to water management (nearly $37 million in tax revenue).
   SDG 8: Decent Work and Economic Growth	8.2: Achieve higher levels of economic productivity through diversification.	Total revenue generated by the industry ($6 billion in wages). Growth rate of the industry (nearly 10% increase in July handle year-over-year).
   SDG 17: Partnerships for the Goals	17.17: Encourage and promote effective public, public-private and civil society partnerships.	Existence of partnerships between government (Division of Gaming), private sector (online operators), and civil society (American Gaming Association).

Source: kjct8.com