Colorado’s sports betting market will operate under tighter regulations following the signing of Senate Bill 26-131 by Governor Jared Polis. The legislation introduces deposit limits, prohibits the use of credit cards for funding accounts, and restricts marketing practices directed at minors. The new rules take effect on August 12, 2026.

Limits on Deposits and Marketing

Colorado Politics reports that, under the law, sports bettors are restricted to a maximum of six deposits within a 24-hour period. Additionally, operators are prohibited from accepting credit card payments for sports betting accounts. The measure also forbids sportsbooks and marketing affiliates from sending push notifications or text messages soliciting bets or deposits, making Colorado the first state in the U.S. to implement such restrictions. Marketing language offering “bonus bets” or “no sweat” promotions is also banned.

The Colorado Gaming Control Commission is authorized to enforce these rules with penalties of up to $25,000 for violations. Companies are also barred from targeting individuals under 21, aligning with the broader goal of protecting vulnerable residents.

Legislative Background and Amendments

SB 26-131 was sponsored by Senators Matt Ball (D-Denver) and Byron Pelton (R-Sterling), along with Representatives Steven Woodrow (D-Denver) and Dan Woog (R-Erie). The legislation received bipartisan support, passing the Senate 20-14 and the House 50-13.

Earlier drafts of the bill included a ban on proposition bets, which involve wagers on specific in-game events like passing yards or the first team to score. This provision was removed after a fiscal analysis projected a $2.4 million reduction in state tax revenue. A proposed ban on live sports advertising during certain hours was also withdrawn. After revisions, the fiscal impact is expected to be approximately $800,000 due to the credit card ban.

Bipartisan Support and Public Response

Supporters argued that the law provides essential protections for bettors. “This law puts guardrails on an industry that has ballooned in Colorado to more than $6 billion in annual wagers in just a few years. That growth has come at a real cost — to families’ financial security, to kids’ well-being, and to the integrity of the games we love,” said Senator Ball. Representative Woog added that the law ensures operators uphold responsibilities, particularly in safeguarding children and other vulnerable populations.

Healthier Colorado reported that 73% of residents feel that the legalization of sports betting in 2019 has worsened problem gambling. Joshua Ewing, the organization’s executive director, described SB 26-131 as “the most comprehensive set of online sports betting protections in the country.” Brianne Doura-Schawohl of the Campaign for Fairer Gambling also commended lawmakers for prioritizing public well-being.

Industry Opposition and Fiscal Concerns

Major operators, including FanDuel and DraftKings, expressed concern that the restrictions could drive bettors to unregulated markets and reduce state revenues. Stanton Dodge of DraftKings noted the potential impact on Colorado’s $850 million budget deficit, emphasizing the importance of regulated revenue streams, over 90% of which fund water conservation projects.

SB 26-131 represents a significant shift in Colorado’s regulatory framework for sports betting, setting new precedents for responsible gaming standards in the United States.