Colorado's legislature is putting the brakes on the rapidly expanding online sports betting market. The Senate passed the SB 26-131 bill with 20 votes in favor and 14 against, a legislative proposal supported as "installing guardrails for the fast-growing gambling market," targeting three directions: limiting the frequency of player deposits, tightening advertising rules, and prohibiting credit card betting. Bill drafter, Senator Matt Bower, was straightforward in the debate—since the legalization of online sports betting in Colorado in 2019, technology has completely transformed the industry, drawing more and more people into a destructive cycle of gambling addiction. In 2025, Colorado players and visitors invested over $6.3 billion in online sports betting, contributing millions in taxes. Meanwhile, Colorado is also advancing a complementary voluntary self-exclusion bill, SB 26-163, with regulatory authorities allocating $3.78 million in 2026 for responsible gambling funding, covering prevention, advocacy, treatment, rehabilitation, research, and data collection.
Limiting deposit frequency, freezing push notifications, and prohibiting credit card betting
The specific provisions of the SB 26-131 bill are quite precise. Licensed online sports betting platforms will be prohibited from accepting more than six independent deposits from the same user within 24 hours, a number revised up from the original version's five during the Senate amendment process. The bill also prohibits operators from sending push notifications and text messages to state account holders to induce betting or deposits. Advertising is also facing stricter constraints; gambling promotional content must not include additional return promises or betting guidance, and broadcast and television advertisements must not be aired between 8 AM and 10 PM or during live sports events, with all-channel marketing targeting those under 21 completely prohibited.
The restrictions on payment channels are also significant. The bill explicitly prohibits the use of credit cards for sports betting deposits, with violators committing a second-degree misdemeanor, subject to a maximum fine of $25,000 by regulatory authorities. Another provision targets operators' covert restrictions on long-term winning players—the bill prohibits sports betting platforms from reducing betting limits or deposit frequencies for players who consistently gain positive returns, unless there is suspicious activity or signs of gambling disorders. The Colorado Gaming Control Board will annually obtain operator data, publishing a public report every three years starting January 1, 2029.
The ban on player performance markets was cut: from a $2.4 million to an $800,000 tax revenue gap behind the compromise
The original version of the bill included a provision prohibiting betting on player performance markets, covering individual athlete performances, referee decisions, penalties, injuries, and other non-final score-related bets. This provision was ultimately removed under the dual pressures of industry opposition and tax revenue loss. Legislative discussions revealed that Colorado anticipated a state revenue loss of about $2.4 million in the next fiscal year if the ban were maintained, with the tax gap significantly narrowing to about $800,000 after its removal. Senator Bower later stated that he chose to compromise to preserve other broader core provisions of the bill, including credit card betting restrictions and bonus promotion limits. Operators strongly lobbied, claiming that more restrictions would only push players towards offshore or illegal markets.
PASA official website continues to track the legislative dynamics of sports betting regulation in various states in the US, noting that Colorado's combination of restrictions strikes a delicate balance between industry acceptability and regulatory strength. Compared to shock therapies like mobile gambling bans proposed by states like Ohio, Colorado has chosen a more moderate but broader gradual tightening, reducing gambling reach through everyday aspects like deposit frequency, payment channels, and advertising exposure. Whether this strategy can find a true balance between protecting players and maintaining tax revenue will provide a critical policy reference for other states that are watching.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
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