Key Highlights
- Senate Bill 26-131 secured passage in Colorado’s Senate with a 20-14 vote, advancing to the House for consideration
- Legislation prohibits credit card use for sports wagering deposits and limits users to six daily deposits maximum
- Broadcast advertising for sports betting would be restricted from 8 a.m. to 10 p.m. during live sporting broadcasts
- Provisions banning proposition wagers were eliminated following fiscal analysis showing $2.4 million in potential tax losses
- Mobile push notifications and text messages promoting wagering activity would be prohibited under the legislation
Colorado’s Senate has advanced significant regulatory changes for the state’s online gambling industry. Senate Bill 26-131 cleared the chamber on April 29 with support from 20 senators against 14 opponents.
The legislation proceeds to the House of Representatives for deliberation. It establishes multiple responsible gambling measures designed to reshape how betting operators conduct business within Colorado’s borders.
During floor debate, Sen. Matt Ball emphasized concerns about aggressive marketing tactics in the gambling sector. He characterized algorithms and promotional campaigns as “increasingly preying on vulnerable online sports bettors.”
Ball referenced substantial industry evolution since Colorado authorized online wagering in 2019. He argued that explosive market expansion has contributed to rising problem gambling rates.
Core Provisions of the Legislation
The most impactful element prohibits credit card transactions for funding betting accounts. This restriction is anticipated to account for the majority of expected revenue reductions associated with the bill.
Additionally, the measure establishes a six-deposit daily maximum for each account. Legislative drafters initially proposed a five-deposit ceiling before revision.
Advertising controls represent another substantial component. Broadcast advertisements for sports wagering would face prohibition between 8 a.m. and 10 p.m. hours during live sports programming.
Marketing campaigns targeting individuals under 21 years of age would be forbidden across all media channels, including broadcast, cable, radio, print, and digital outlets. Operators would lose authorization to transmit push alerts or SMS messages designed to stimulate betting behavior.
Companies would face restrictions on promotional language, specifically terms such as “bonus bet” or “no sweat” in advertising content.
The bill mandates triennial public reporting from licensed operators beginning in 2029. These disclosures would encompass revenue figures and wagering patterns.
Player Proposition Ban Eliminated Following Financial Assessment
Initial drafts contained provisions prohibiting wagers on individual athlete statistics, referee decisions, penalties, and injury-related outcomes. These clauses were removed prior to the Senate floor vote.
The deletion followed Senate Appropriations Committee examination of fiscal impact projections. Analysis indicated the proposition bet prohibition would eliminate $2.4 million in state sports betting tax collections.
Even without this ban, state officials project approximately $800,000 in lost tax revenue during the coming fiscal year resulting from remaining provisions.
Louisiana experienced comparable circumstances recently. A state legislator abandoned similar proposition betting restrictions after revenue projections showed nearly $21 million in annual state losses.
The Appropriations Committee forwarded SB 26-131 with minimal support, passing 4-3 following removal of proposition betting language.
Bill advocates have characterized the effort as cross-party collaboration. Legislative sponsors state their objective centers on bettor safeguards while maintaining regulatory oversight of the industry.
The measure currently awaits action from the House Appropriations Committee, which faces a May 11 deadline for consideration.
