Colorado Signs New Sports Betting Restrictions into Law
DENVER – Colorado has enacted new restrictions on sports betting after Governor Jared Polis signed legislation introducing fresh consumer protection measures for online gamblers.
LISTEN TO THIS ARTICLE:The law marks the state's most significant sports betting reform since voters approved legal sports wagering in 2019. The signing follows an earlier vote in which Colorado lawmakers passed a problem gambling bill for sportsbook apps.
Senate Bill 131 introduces limits on deposits, prohibits the use of credit cards to fund betting accounts and restricts how sportsbooks can market to customers.
New Safeguards for Colorado Bettors
Under the new law, sports bettors will be limited to six deposits within a 24-hour period. The legislation also bans the use of credit cards to fund sports betting accounts, a measure designed to reduce the risk of gamblers accumulating debt while wagering.
Sports betting operators are now prohibited from targeting anyone under the age of 21 and cannot send push notifications or text messages encouraging users to place bets or make deposits. Lawmakers said the measures are intended to add safeguards to a market that has grown rapidly since legalization.
“After months of work alongside recovery advocates, health care professionals, and families across Colorado, SB 26-131 is now law”, State Senator Matt Ball said after the bill was signed.
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Industry Growth Sparks Policy Debate
Colorado was one of the early adopters of online sports betting in the United States. Since launching in 2020, the market has expanded significantly, with more than $6.5 billion wagered across the state last year alone.
At the same time, concerns about gambling-related harm have increased among lawmakers, healthcare professionals and advocacy groups.
Supporters of the legislation pointed to research suggesting links between online sports betting and financial distress. One study cited by lawmakers found higher rates of personal bankruptcy filings in states where online sports betting is available.
Ball said technological developments and increasingly sophisticated marketing practices had transformed the industry since legalization.
“Since Colorado’s legalization of online sports betting in 2019, technology has rapidly transformed the industry, catching more and more people in the cycle of devastating gambling addiction”, he said.
Prop Bet Ban Removed Before Final Vote
The final legislation is narrower than originally proposed.
Earlier versions of the bill included a ban on proposition bets, which are wagers tied to specific player performances or in-game events. That provision was removed before final passage following opposition from operators including DraftKings and FanDuel.
The companies argued that stricter limits could push customers toward unregulated betting markets while reducing tax revenue collected by the state.
More than 90% of Colorado's sports betting tax revenue is directed toward water conservation projects. The state collected almost $44 million in sports betting taxes last year.
Supporters of the law said the final measure still represents one of the most significant responsible gambling reforms adopted by a US sports betting market. The legislation also requires the state to collect and publish additional data in the coming years to better understand the impact of sports betting on consumers.
Joshua Ewing, executive director of Healthier Colorado, described the measure as “the most comprehensive set of online sports betting protections in the country”.
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