Colorado lawmakers send online sports betting restrictions bill to governor’s desk

Colorado lawmakers have approved legislation that would introduce new restrictions on online sports betting, including limits on daily deposits and a ban on promotional push notifications sent through gambling apps.

Senate Bill 131, which now awaits action from Gov. Jared Polis, could make Colorado the first US state to limit the number of daily deposits a bettor can make in a sportsbook app.

Under the measure, bettors would be limited to six deposits per day, although no cap would be placed on the value of each transaction. The legislation also would prohibit gambling operators from sending push notifications that encourage bets or deposits.

In addition, the bill would ban the use of credit cards for sportsbook deposits, a policy supporters say is intended to prevent bettors from wagering funds they do not have. Five of Colorado’s 13 online sportsbooks already prohibit credit card deposits.

The Senate approved House amendments on the final day of the legislative session, sending the bipartisan measure to the governor’s office for review.

Sen. Matt Ball, a Denver Democrat and one of the bill’s sponsors, said research links repeated deposits into online betting accounts with higher-risk gambling behavior.

“As a result, deposit limits are widely recognized as an effective harm-reduction tool designed to introduce friction, slow loss-chasing behavior, and reduce extreme outcomes, particularly among high-intensity users,” he said.

Ball also said repeated push notifications can prompt continued betting activity after losses and contribute to impulsive wagering behavior.

Industry concerns over restrictions

The legislation faced resistance from sportsbook operators and gambling industry groups during the session. Industry representatives argued that deposit restrictions and advertising limits could lead to revenue losses and customer frustration.

An earlier version of the bill also sought to prohibit proposition bets, which allow wagers on individual athlete performances and are frequently packaged into parlays. That provision was removed following opposition from the industry.

Operators argued that proposition bets remain popular with bettors because of their larger potential payouts and their contribution to sportsbook revenue.

Colorado’s sports betting market has continued to generate substantial wagering activity. During the first nine months of fiscal year 2025, wagers exceeded $4.4 billion and produced $27 million in tax revenue. In September 2025 alone, sportsbooks recorded $608.8 million in bets and $46 million in gross gaming revenue. Tax proceeds from the industry are directed in part to Colorado water conservation projects.

Gambling addiction debate continues

Between 6 million and 10 million Americans meet the criteria for severe gambling disorder, while another 10 million to 15 million are considered at risk. Young adults aged 18-34, men, and mobile sports bettors were identified among the groups most affected.

Supporters of the legislation said the measure addresses behavioral triggers tied to problem gambling and online betting activity.

Brianne Doura-Schawohl, director of the Campaign for Fairer Gambling, described the legislation as providing “revolutionary consumer protections” and called on Polis to approve the measure.

Eric Maruyama, a spokesperson for the governor, said Polis will review the final version of the bill.

State-level consumer protection measures

If enacted, the legislation could become a reference point for other jurisdictions considering responsible gambling policies tied to online wagering platforms.

Federal laws such as the Unlawful Internet Gambling Enforcement Act of 2006 and the Wire Act provide regulatory guardrails for interstate gambling activity and financial transactions, while harm-reduction policies remain largely under state oversight.

The proposal comes as legalized sports betting continues to expand across the United States. 39 US states, along with Washington, D.C., and Puerto Rico, have legalized sports betting in some form, while 30 states currently permit online or mobile wagering.