TLDR
- Colorado’s Senate passed SB 26-131 by a 20-14 vote, sending the bill to the House for further action
- The bill bans credit card deposits for sports betting and caps daily deposits at six per account
- Sports betting ads would be banned on broadcast channels between 8 a.m. and 10 p.m. during live events
- A proposed ban on prop bets was removed after fiscal estimates warned it would cost $2.4 million in tax revenue
- Sportsbooks would be blocked from sending push notifications or texts encouraging users to place bets
Colorado lawmakers took a step toward tightening the rules around online sports betting this week. The state Senate passed Senate Bill 26-131 by a vote of 20-14 on April 29.
The bill now moves to the House. It introduces a range of new responsible gaming standards aimed at how betting platforms operate in the state.
Sen. Matt Ball spoke on the Senate floor about the risks of unchecked advertising in the industry. He said algorithms and ads are “increasingly preying on vulnerable online sports bettors.”
Ball pointed to major changes in the industry since Colorado legalized online sports betting in 2019. He said the rapid growth of the market has pulled more people into gambling addiction.
What the Bill Would Change
One of the biggest parts of the bill is a ban on using credit cards to fund sports betting accounts. That provision is expected to drive most of the projected revenue decline tied to the legislation.
The bill also places a daily cap of six deposits per account holder. An earlier version of the bill had set that limit at five.
Advertising restrictions make up a major piece of the legislation. Sports betting ads would be banned on broadcast channels between 8 a.m. and 10 p.m. during live sporting events.
Marketing directed at anyone under 21 would be banned across broadcast, cable, radio, print, and digital platforms. Sportsbooks would also be barred from sending push notifications or text messages that encourage users to bet.
Operators would no longer be allowed to use promotional phrases like “bonus bet” or “no sweat” in their marketing materials.
The bill would also require licensed operators to submit public reports every three years starting in 2029. Those reports would detail revenue and betting activity.
Prop Bet Ban Removed Over Revenue Concerns
An earlier version of the bill included language that would have banned bets tied to individual player performance, officiating calls, penalties, and injuries. That provision was removed before the Senate vote.
The change came after the Senate Appropriations Committee reviewed a fiscal report. The report estimated that keeping the prop bet ban would have cost the state $2.4 million in sports betting tax revenue.
Without the ban, the state still expects to lose about $800,000 in tax revenue next year due to the other provisions in the bill.
A similar situation played out in Louisiana earlier this year. A state senator there withdrew a bill to ban prop bets after a fiscal projection showed it would cost the state nearly $21 million in annual revenue.
The Appropriations Committee advanced SB 26-131 by a narrow 4-3 vote after the prop bet language was stripped.
Supporters of the bill have framed it as a bipartisan effort. Lawmakers say the goal is to add protections for bettors while keeping the industry regulated.
The bill now sits with the House Appropriations Committee, which has until May 11 to act on the measure.
