Colorado’s legal sports-betting market closed out 2025 with a big spike in action, and while the tax money is rolling in, clinicians say the human cost is climbing right along with it. State revenue numbers show a clear upside for water projects and other funds, but behavioral-health leaders warn that the same click-and-bet convenience that keeps wagers flowing is also fueling more addiction and financial distress.
State revenues jump
According to the Colorado Department of Revenue’s Division of Gaming, sports-betting tax collections for December 2025 totaled $4,631,754.34, a major year-over-year increase. The December 2024 monthly sports-betting report shows $1,488,606.74 in taxes for that month, making the December-to-December jump roughly 211% as the market has ramped up. Those figures are detailed in the state's monthly sports-betting reports.
Health experts sound the alarm
Local clinicians point to aggressive marketing and complex wagers as drivers of trouble. Brad Sjostrom, director of behavioral health at AdventHealth Porter, told Denver7 that sportsbooks often "offer people up $100 or more to gamble up front," and that he has treated patients who fell into severe debt. Some bettors interviewed in downtown Denver described wagering as entertainment, but health workers say signs such as chasing losses and borrowing money are red flags that need treatment and prevention.
Clinics brace for more cases
Mental-health providers across the state say they are already preparing for increased demand. A recent report from Axios notes that clinicians expect a surge in calls after major sports events and that a local survey cited by the Problem Gambling Coalition of Colorado found roughly 16% of Coloradans who gamble may be at elevated risk for problematic wagering.
Where the money goes and the trade-offs
Lawmakers and regulators point out a clear public benefit: much of the tax revenue from sports betting is routed to Colorado’s water projects. Coverage of recent legislation and allocations shows that the growth in wagering has translated into millions earmarked for the state’s water plan and related grants. At the same time, health professionals and advocacy groups say a slice of that revenue should also expand prevention and treatment services for problem gambling.
If you or someone you know is struggling with gambling, resources include BetSmart.Colorado.gov and the confidential helpline 1-800-GAMBLER; treatment and self-exclusion details are available through state and local problem-gambling programs.
