Colorado set a new monthly record for sports betting tax revenue in January, bringing in more than $5 million for the first time since legal wagering began in 2020.

According to new data released on Tuesday by the Colorado Division of Gaming, the state collected $5,022,182 in taxes from sports betting in January. That breaks the previous record of about $4.76 million set in October 2025.

The January total is also a 13% increase compared with January 2025, when the state collected about $4.44 million in taxes.

Colorado bettors wagered more than $630 million in January, slightly higher than the roughly $618 million wagered in December. However, that total was about 4% lower than the same month last year.

State officials said the record tax revenue means more funding for water conservation projects across Colorado.

“Generating over $5 million in taxes for the first time means millions of dollars for our state’s water projects,” said Heidi Humphreys, executive director of the Colorado Department of Revenue. “This helps the Colorado Water Plan and secures the future of our state.”

Since sports betting launched in Colorado in 2020, tax proceeds have generated more than $100 million for water conservation efforts tied to the state’s water plan. Officials estimate that total could surpass $120 million once taxes from the current fiscal year are distributed.

The revenue supports the state’s Water Plan Grant Program, which funds projects focused on water conservation, planning and drought resilience.

“The January figures are a historic achievement,” said Christopher Schroder, director of the Division of Gaming. “Most importantly, this significant revenue ensures sustained funding for Colorado’s vital water projects.”

Through the first seven months of the fiscal year, Colorado bettors have placed about $4 billion in wagers, generating roughly $28.6 million in tax revenue so far.

State regulators also said they continue to emphasize responsible gambling. In February, the Colorado Limited Gaming Control Commission awarded nearly $3.8 million in responsible gaming grants to programs across the state. 

People struggling with gambling addiction can find resources through the state’s BetSmart program or by calling or texting the national problem gambling hotline at 1-800-GAMBLER.