Colorado Senate passes bill tightening sports betting rules
The Colorado Senate has approved Senate Bill 26-131 by a 20-14 vote, moving the proposal to the House for review. Concerns about problem gambling, such as the use of tailored promotions and digital interaction technologies that can promote excessive betting, are the main emphasis of the measure. Officials claim that as the industry grows, new protections are required to guarantee responsible gambling.
Bill sponsor Senator Matt Ball stated, “Pernicious algorithms and advertisements are increasingly preying on vulnerable online sports bettors. Since Colorado legalised online sports betting in 2019, technology has rapidly transformed the industry, catching more people in the cycle of devastating gambling addiction. As online sports betting continues its rise in popularity, we must ensure there are reasonable protections in place to help prevent addiction, protect underage Coloradans, and uphold the integrity of the game and its athletes.”
Key highlights of the bill
Senate Bill 26-131 in Colorado introduces several measures to strengthen responsible gaming standards. It proposes banning credit card deposits for sports betting accounts to reduce debt-driven gambling, even though this could lower tax revenue. Phrases like “bonus bet” or “no sweat” would be forbidden in order to prevent deceptive promotions, and sports betting advertisements would not be permitted during live events between 8 a.m. and 10 p.m. The bill also sets deposit limits, allowing only six deposits within 24 hours, and prevents sportsbooks from restricting successful bettors unless suspicious activity is involved. Push notifications and text messages soliciting bets would be banned, and marketing would be barred from targeting individuals under 21 across all media platforms.
This bill also focuses on bolstering safeguards for susceptible gamblers. To lower the risks associated with debt and impulsive betting, it implements policies such as deposit caps, prohibitions on aggressive marketing, and a ban on credit card deposits. Gambling addiction is an increasing concern, according to lawmakers, and it is frequently associated with easy access and persistent digital cues. The measure intends to address these concerns early and provide a more responsible structure for the state’s betting industry by tightening regulations around payment methods, advertising, and player safety.
Removal of prop bet ban
Legislators in Colorado have chosen not to proceed with a prohibition on proposition bets, which are betting on particular game occurrences rather than the result. Integrity and gambling addiction were the initial reasons for considering the ban. However, an economic study indicated that the income loss would be $2.4 million instead of $800,000 in the absence of the restriction. Legislators decided to keep prop bets allowed in light of the financial impact while concentrating on other measures to mitigate risks in the state’s sports betting industry.
Revenue projections
Senate Bill 26-131 in Colorado has both regulatory and economic ramifications. Stricter controls are expected to slightly limit betting activity and result in a $800,000 decrease in tax collection. Lawmakers argue that the social benefits of stronger consumer protections justify this small expense. The argument reflects a broader trend: Louisiana recently considered making prop and microbetting illegal but decided against it after estimating a $21 million loss in revenue. Colorado’s approach, which focuses on particular restrictions while maintaining the industry’s economic contributions, is more measured than general prohibitions.
The Appropriations Committee has until 11 May 2026 to advance Senate Bill 26-131, which will now be considered by the House. Whether Colorado’s betting system adopts stricter consumer protections will depend on the outcome. By offering a framework that finds a balance between economic expansion and regulation as sports betting expands across the nation, the proposal may have an effect on how other legislators approach responsible gambling outside of the state.
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