The Colorado Lottery was implemented as a state lottery on July 1, 1982 when the General Assembly passed S.B. 119. The Colorado Lottery's distribution formula was 40% of net proceeds would be allocated to the Conservation Trust Fund to support local parks, recreation and open space projects; 10% of the net proceeds would be allocated for state parks and outdoor recreation programs; and the remaining net proceeds would go toward state capital construction projects.
The First scratch ticket was sold in January 1983, the expected sales for this first ticket was $60 million, but by June 30, sales had reached $137 million. Colorado Lottery's first millionaire was named April 23, 1983 as it held its first grand prize drawing. With money raised from the Colorado Lottery distributed through the Capital Construction Fund improvements to the Colorado State Fair grounds were completed in 1985. On January 24, 1989 the Colorado Lottery created its first jackpot game, Lotto. The first day sales of this game totaled $218,119 by the end of the first week total sales reached $913,390.
Another project completed through funds allocated by the Capital Construction Fund was the Colorado Convention Center whose land was purchased with lottery proceeds in 1990. The largest lottery jackpot at the time in 1992 was $27 million awarded to Kim Walker, of Boulder, she also became the 100th Lotto Millionaire.