Colorado lawmakers are moving closer to enacting new regulations for the state’s legal sports betting industry as Senate Bill 26-131 continues advancing through the legislature. The measure, which focuses on consumer protections and responsible gambling safeguards, has already cleared key votes in both chambers and is now awaiting consideration in the House before the legislative session ends on May 13.

The bill originally passed the Colorado Senate by a 20-14 vote and later moved through multiple House committees, including a 9-2 approval in the House Finance Committee. It then advanced unanimously out of the House Appropriations Committee in an 11-0 vote, signaling broad legislative support as it approaches a full House vote.

If approved and signed by Governor Jared Polis, SB 26-131 would introduce several new restrictions affecting licensed sportsbooks operating in Colorado, a market that has been active since legal sports betting launched in May 2020 following voter approval in 2019.

Deposit Rules and Payment Restrictions Take Center Stage

One of the central components of the bill is a set of new limits on how players can fund their betting accounts, according to CBS Sports. The legislation would prohibit the use of credit cards for sports betting deposits entirely. It would also restrict account holders to a maximum of six deposits within a 24-hour period, a change designed to reduce repeated funding behavior after losses.

Earlier versions of the bill proposed a stricter five-deposit cap, but lawmakers revised the language during committee discussions. The updated six-deposit limit reflects one of several amendments made as the bill progressed through the legislative process.

Supporters of the measure argue that these restrictions are intended to create what one legislator described as “guardrails” around problematic betting patterns, particularly situations involving repeated deposits in short periods.

Advertising Limits and Player Protection Measures

SB 26-131 also introduces significant changes to how sportsbooks can market their services. The bill would prohibit operators and their marketing partners from targeting individuals under 21 years old. It further restricts advertising content that could reasonably appeal to audiences primarily composed of underage individuals.

Another major provision bans push notifications and text messages that encourage users to place bets or make deposits. Additionally, sportsbooks would be barred from sending promotional messages directly soliciting gambling activity.

Earlier drafts of the legislation included broader advertising restrictions, such as blackout periods for ads during certain hours and limits on promotional content like enhanced odds messaging. Those provisions were ultimately removed as the bill moved through committees.

Debate Over Promotional Offers and Revenue Impact

The legislation initially included a controversial proposal to ban player prop bets, which are wagers on individual athlete or game outcomes. However, lawmakers removed that section after fiscal projections indicated it could significantly reduce state tax revenue. Estimates suggested a full prop bet ban could reduce revenue by more than $2 million annually, prompting revisions to the bill.

Even without that restriction, updated fiscal projections still anticipate a smaller revenue decrease, estimated at around $800,000, largely tied to the prohibition on credit card deposits.

Another eliminated provision would have restricted advertising during live sporting events between 8 a.m. and 10 p.m. Lawmakers removed it following amendments in committee discussions.

Responsible Gaming Standards and Reporting Requirements

Beyond restrictions on payments and advertising, SB 26-131 also expands responsible gaming requirements. Operators would be required to implement safeguards designed to prevent harmful betting behavior and protect consumers who are consistently successful in wagering.

The bill also includes protections for winning bettors, preventing sportsbooks from imposing account limits on players solely due to success, unless there are verified behavioral concerns.

Additionally, sportsbooks would be required to submit annual data and performance metrics to state regulators. This information would be compiled into a public report released every three years starting in 2029, adding a new layer of transparency to Colorado’s regulated betting market.

Final Legislative Hurdles Remain

While SB 26-131 has advanced rapidly through committees, lawmakers face a tight deadline to finalize the measure before the session closes. The House must still vote on the bill before it can move to Governor Polis for potential approval.

Supporters say the bill is aimed at refining Colorado’s existing legal sports betting system rather than restricting it outright. As one sponsor noted during hearings, the intent is to ensure “the product they were promised is the product they actually got.”

Opponents, however, have raised concerns that tighter regulations could push some users toward unregulated or offshore betting markets, reducing transparency and potentially impacting state revenue. Others argue the bill does not fully address the root causes of problem gambling.

With the legislative clock ticking, the fate of Colorado’s proposed sports betting reforms now rests with the full House, where a final decision is expected in the coming days.