Key Highlights
- Senate Bill 26-131 secured passage in Colorado’s Senate with a 20-14 vote, advancing to the House
- Credit card funding for sports betting accounts would be prohibited under the legislation
- Bettors would face a maximum of six daily deposits per account
- Advertising during live sporting events would be restricted on broadcast television from 8 a.m. to 10 p.m.
- Originally included prop bet restrictions were eliminated after revenue impact analysis showed $2.4 million in potential losses
- Operators would be prohibited from sending promotional push notifications or text messages to users
Colorado’s legislative body moved forward with significant sports betting reforms this week as the state Senate approved comprehensive regulatory changes through Senate Bill 26-131 in a 20-14 decision on April 29.
The legislation advances to the House for consideration and would establish new responsible gambling requirements governing how betting operators conduct business throughout Colorado.
During Senate floor proceedings, Sen. Matt Ball addressed concerns about aggressive marketing tactics within the betting industry. He highlighted how sophisticated algorithms and targeted advertising are “increasingly preying on vulnerable online sports bettors.”
Ball referenced the substantial transformation of Colorado’s betting landscape since the state authorized online wagering in 2019. According to the senator, the industry’s explosive expansion has contributed to rising gambling addiction rates among residents.
Major Provisions in the Legislation
The most significant component of the bill would eliminate credit card usage for funding sports betting accounts. This restriction is anticipated to account for the largest portion of projected revenue reductions associated with the measure.
Additionally, the legislation establishes a daily deposit ceiling of six transactions per account. This represents an increase from the initial draft, which proposed a five-deposit limit.
Advertising limitations constitute a substantial portion of the regulatory framework. Under the bill, sports betting advertisements would be prohibited on broadcast television during live sporting events between 8 a.m. and 10 p.m.
All marketing content targeting individuals under 21 would be forbidden across multiple platforms, including broadcast television, cable networks, radio stations, print publications, and digital media channels. Betting operators would also lose the ability to send push notifications or text messages designed to prompt wagering activity.
The legislation would further restrict operators from incorporating promotional language such as “bonus bet” or “no sweat” in their advertising campaigns.
Licensed operators would face new transparency requirements, mandating the submission of comprehensive public reports every three years beginning in 2029. These documents would outline revenue figures and betting patterns.
Player Performance Betting Restrictions Dropped Following Revenue Analysis
The initial draft of SB 26-131 contained provisions that would have prohibited wagers on individual player statistics, referee decisions, penalty calls, and injury-related outcomes. These restrictions were eliminated prior to the Senate vote.
The revision occurred following the Senate Appropriations Committee’s examination of a fiscal impact assessment. The analysis projected that maintaining the player performance betting prohibition would have resulted in $2.4 million in lost sports betting tax collections for the state.
Even without this restriction, state projections indicate approximately $800,000 in foregone tax revenue during the upcoming fiscal year due to the bill’s remaining provisions.
A comparable scenario unfolded in Louisiana during the current legislative session. A state lawmaker withdrew proposed legislation to prohibit player performance wagers after fiscal analysts determined it would eliminate nearly $21 million in annual state revenue.
Following the removal of the player performance betting language, the Appropriations Committee approved SB 26-131 by a slim 4-3 margin.
Legislative supporters have characterized the measure as a bipartisan initiative. Proponents argue the legislation aims to strengthen consumer protections while maintaining effective industry oversight.
The bill currently awaits action from the House Appropriations Committee, which faces a May 11 deadline to address the measure.
