(1) (a) There is hereby created, in the state treasury, the sports betting fund, referred to in this section as the "fund". The initial appropriation to the division for sports betting regulation and all subsequent revenues of the division derived from sports betting activity and the regulation of fantasy contest operators under part 16 of this article 30, including license fees, fines and penalties, and collection of the sports betting tax, shall be deposited into the fund. All expenses of the division related to sports betting and fantasy contest regulation, including the expenses of investigation and prosecution relating to sports betting and the regulation of fantasy contest operators, shall be paid from the fund. (b) All money paid into the fund is continuously appropriated for the purposes of implementing this part 15 and part 16 of this article 30. Payment shall be made upon proper presentation of a voucher prepared by the commission in accordance with other statutes governing payments of liabilities incurred on behalf of the state and shall not be conditioned on any appropriation by the general assembly. Receipt of the payment constitutes spending authority by the division. (2) For fiscal years commencing on or after July 1, 2024, from the money in the sports betting fund, to the extent the unexpended and unencumbered balance in the fund so permits, the state treasurer shall distribute an amount equal to all revenue of the division annually derived from the regulation of sports betting and fantasy contests, including license fees, fines, and penalties, and the first twenty-nine million dollars annually collected for payment of the sports betting tax as follows: (a) Repealed. (b) First, pay all ongoing expenses related to administering this part 15 incurred by the commission, the department, the division, and any other state agency from whom assistance related to the administration of this part 15 is requested by the commission or the director, as determined in accordance with rules of the commission. When making distributions from the fund as described in this subsection (2), the state treasurer may withhold an amount reasonably anticipated to be sufficient to pay the expenses until the next annual distribution. (c) Second, transfer an amount equal to six percent of the full fiscal year sports betting tax revenues, or six percent of twenty-nine million dollars, whichever is less, to the wagering revenue recipients hold-harmless fund, referred to in this section as the "hold-harmless fund", which is created in the state treasury, from which the state treasurer shall make disbursements as directed by the commission as follows: (I) The commission shall accept applications from the following persons and entities for annual, lump-sum payments to offset any loss of revenue that they can demonstrate, to the commission's satisfaction, is attributable to sports betting: (A) The state historical fund created by section 9 (5)(b)(II) of article XVIII of the state constitution; (B) The colleges described in section 44-30-702 (4)(a); (C) The cities of Central, Black Hawk, and Cripple Creek; (D) The counties of Gilpin and Teller; and (E) Any persons or entities who benefit from purse funds collected pursuant to section 44-32-702 (1)(c) or 44-32-705. (II) The commission shall establish, by rule, an annual schedule for the acceptance of applications; the form and manner in which applications must be made; its criteria for verifying the amount of each applicant's revenue loss attributable to sports betting; and the date on which distributions from the hold-harmless fund are to be made. (III) If, on the annual date of distribution, there is not sufficient money in the hold- harmless fund to pay all verified losses, the commission shall direct the state treasurer to reduce the amount of all claims by a uniform percentage so that applicants receive a share of the money proportionate to their verified losses. (IV) On December 31, 2023, and on December 31 of each year thereafter, the state treasurer shall transfer any money credited to the hold-harmless fund and not disbursed within two years after the date on which the money is credited to the hold-harmless fund, as authorized by the commission, to the responsible gaming grant program cash fund created in section 44-30- 1702 (8). (d) Repealed. (e) Third, transfer all remaining unexpended and unencumbered money in the fund that is subject to distribution pursuant to this subsection (2) to the water plan implementation cash fund created in section 37-60-123.3. (2.5) (a) For each fiscal year commencing on or after July 1, 2024, from the money in the sports betting fund, to the extent the unexpended and unencumbered balance in the fund so permits, the state treasurer shall distribute an amount equal to all revenue collected for payment of the sports betting tax in excess of twenty-nine million dollars to the water plan implementation cash fund created in section 37-60-123.3. (b) If a majority of the electors voting in the November 2024 election vote "No/Against" on the ballot issue submitted to the voters pursuant to section 44-30-1517 (2), this subsection (2.5) is repealed, effective January 1, 2025. (3) Nothing in this section permits compounding or accumulation of the annual adjustment. (4) Upon request, the state treasurer shall report to the director or the commission the amount of money available in the fund. The director shall certify all accounts and expenditures from the fund. The state treasurer shall pay upon warrants drawn by the controller. The controller is authorized as directed to draw warrants payable out of the fund upon vouchers properly certified. (5) The state treasurer shall invest the money in the fund so long as the money is timely available to pay the expenses of the division. Investments must be those otherwise permitted by state law, and interest or any other return on the investments shall be paid into the fund. (6) The division shall be operated so that, after the initial state appropriation, its administration of this part 15 and part 16 of this article 30 is financially self-sustaining. (7) No claim for the payment of any expense of the division relating to administering this part 15 or part 16 of this article 30 can be made unless it is against the fund. No other money of the state shall be used or obligated to pay the expenses of the division or commission related to sports betting or fantasy sports activity.
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