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Colorado bans sportsbook push notifications

Neha Soni
Written by Neha Soni

Colorado has become the first state in the US to prohibit sportsbooks from sending push notifications and text messages designed to encourage betting activity after Governor Jared Polis signed sweeping sports betting legislation into law.

The new Colorado sports betting law introduces some of the toughest responsible gaming measures in the country, placing stricter limits on sportsbook marketing, player deposits and account funding methods. Senate Bill 26-131 was signed by Polis on Monday, following months of debate and amendments, aimed at strengthening consumer protections and reducing gambling-related harm.

Colorado introduces major sports betting restrictions

The newly signed legislation establishes a range of responsible gambling requirements for licensed sportsbooks operating in Colorado. Among the most significant changes is a first-of-its-kind prohibition on sportsbook push notifications and text messages that directly solicit betting activity. Colorado is now the first US jurisdiction to implement such a restriction.

Under the law, sportsbooks must also comply with several additional measures, including a ban on push notifications and text messages used to encourage betting. The proposed law also prohibits using credit cards to fund sportsbook accounts, restricts marketing terms such as “bonus bet” and “no sweat bet”, and limits deposits to six per bettor within a 24-hour period. Additionally, it proposes a ban on targeting individuals under the age of 21 through advertising and affiliate marketing and potential regulatory penalties of up to $25,000 for violations. The new regulations are scheduled to take effect on 12 August.

Lawmakers cite responsible gaming concerns

Senator Matt Ball, one of the bill’s sponsors, said the legislation introduces important safeguards for consumers and families affected by gambling-related issues. Colorado’s sports betting market has grown to more than $6 billion in annual wagers since legalisation, according to lawmakers. Thus, prompting calls for stronger responsible gaming standards and consumer protection measures.

Senate Bill 26-131 was introduced in the Colorado Senate in February and passed the chamber in April after undergoing several amendments. The bipartisan proposal subsequently advanced through multiple House committees before receiving approval from the full House on 9 May. Amendments adopted by the House were later approved by the Senate, allowing the legislation to proceed to Governor Polis for final consideration. For players exploring legitimate gambling options, the best online casinos for US players offer a regulated alternative to sportsbooks.

Proposed prop betting ban removed from final legislation

Earlier versions of the bill included a proposed ban on certain proposition betting markets. The initial proposal aimed to stop wagers linked to officiating decisions, injuries, penalties, and individual athlete performances. Lawmakers argued that these restrictions would help protect athletes and reduce integrity concerns in sports betting markets.

Because of concerns that prop bets could increase gambling addiction, Senate Bill 131 originally proposed banning them. However, lawmakers later dropped the provision because it would reduce state tax revenue from sports betting. Senator Matt Ball said that other restrictions in the bill, such as the ban on using credit cards for betting, helped lessen the financial impact. As a result, the estimated loss in tax revenue was revised from about $2.4 million to around $800,000 per year.

Sports betting advertising restrictions also considered

Lawmakers also explored additional restrictions on sports betting advertising during live sporting events. One proposal would have prohibited sports betting advertisements between 8 am and 10 pm. However, the measure did not advance and was excluded from the final version of the legislation signed into law. Despite the removal of those provisions, Colorado’s new sports betting regulations remain among the strictest in the United States.

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