The Colorado office of the state auditor released a report criticising the state regulator for limited background checks and failures to investigate temporary licensees, as well as raising questions about the operator tax filings.
The regulatory failures documented by the report places into stark relief the first years of legal sports betting in the state.
“During the first year of regulating sports betting, the Division of Gaming, within the Department of Revenue, did not have an effective process to investigate sports betting operations for temporary licensure, or to collect sufficient documentation to determine if sports betting operations’ monthly tax filings were accurate,” the report states.
The audit found the commission issued the majority of operators only temporary licences. With these licences, the operators receive the same privileges as permanent licences but with far less stringent background check procedures.
“As of March 2022, 35 out of the 39 licensed retail and i..