Colorado Sports Betting Rules Bill Moves Forward

Colorado lawmakers are nearing a final decision on Senate Bill 26-131, a proposal that would introduce new responsible gambling measures, payment restrictions, and marketing rules for the state’s legal sports betting market.

The legislation has already passed several stages in both legislative chambers and now awaits consideration by the full House before the Colorado legislative session concludes on May 13.

SB 26-131 first cleared the Colorado Senate with a 20-14 vote before advancing through House committees in recent days. The House Finance Committee approved the measure by a 9-2 margin, followed by unanimous support in the House Appropriations Committee, where it passed 11-0.

If lawmakers approve the bill and Governor Jared Polis signs it into law, the measure would alter several operational rules for licensed sportsbooks that have been active in Colorado since legal sports betting launched in May 2020.

Deposit Limits and Credit Card Ban Included

A major focus of the bill involves new rules governing how players fund sportsbook accounts.

Under the proposal, sportsbooks would no longer be allowed to accept credit card deposits. 

The legislation also introduces a daily limit on account funding activity, restricting users to a maximum of six deposits within a 24-hour period.

Earlier drafts of the bill proposed a five-deposit limit, though lawmakers later adjusted the number during committee discussions.

Supporters of the measure said the restrictions are intended to address repeated deposit behavior associated with gambling losses and to strengthen consumer protections within the regulated market.

The proposal also includes broader responsible gaming requirements for operators. Sportsbooks would need to implement safeguards aimed at reducing harmful betting behavior while also introducing additional protections for bettors.

One provision would prevent operators from limiting successful bettors solely because of winning activity unless behavioral concerns have been identified.

The bill further requires sportsbooks to provide annual operational data and performance metrics to regulators. Beginning in 2029, the state would release a public report every three years summarizing that information.

Advertising Rules Face Major Changes

SB 26-131 would also reshape how sportsbooks and affiliate marketing partners promote betting services in Colorado.

The legislation prohibits advertising directed at individuals under 21 years old and restricts promotional content that could reasonably appeal primarily to underage audiences.

Push notifications and text messages encouraging users to place bets or make additional deposits would also be banned under the proposal. Sportsbooks would no longer be permitted to directly send promotional messages soliciting gambling activity.

Several stricter advertising measures originally included in earlier drafts were later removed during committee negotiations.

One removed section would have limited sports betting advertisements during live sporting broadcasts between 8 a.m. and 10 p.m. Another discarded proposal targeted enhanced odds promotions and other promotional messaging.

The bill previously also included a ban on player prop bets, which are wagers tied to individual athletes or in-game outcomes. Lawmakers eventually removed that section after fiscal estimates suggested it could reduce Colorado tax revenue by more than $2 million annually.

Even after revisions, updated projections still estimate that the bill could lower annual revenue by approximately $800,000, mainly due to the planned ban on credit card deposits.

Final Decision Expected Before Session Ends

With only a limited number of legislative days remaining, lawmakers are working under a tight deadline to complete action on the bill before the current session ends.

Supporters of SB 26-131 describe the measure as an effort to refine the regulated betting framework in Colorado rather than reduce legal wagering activity.

During hearings, one sponsor stated that the objective was to ensure “the product they were promised is the product they actually got.”

Opposition to the bill has focused on concerns that additional restrictions could encourage some bettors to use offshore or unregulated sportsbooks instead of licensed operators. Critics have also questioned whether the proposal fully addresses the broader causes of problem gambling.

Colorado voters originally approved legal sports betting through a 2019 ballot initiative, paving the way for the market launch the following year. Since then, the state has become one of the more active regulated sports betting jurisdictions in the United States.

The final House vote is expected in the coming days as lawmakers race against the legislative calendar.

Source:

"Colorado Sports Betting Bill Advances Amid Tight Timeline", news.worldcasinodirectory.com, May 9 2026