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Colorado lawmakers are weighing new restrictions on sports betting as state officials respond to concerns about gambling harm, advertising practices and the rapid expansion of online wagering since legalization.
Two separate measures are moving through the Legislature. One would place tighter limits on sportsbook operations, promotions and payment methods. Another would formally add sports betting to Colorado’s voluntary self-exclusion laws while shifting some regulatory duties tied to racing and gaming oversight.
The main proposal, Senate Bill 26-131, cleared the Colorado Senate on a 20-14 vote and now heads to the House for further consideration. Supporters say the measure adds safeguards for a market that has grown quickly in recent years.
“Pernicious algorithms and advertisements are increasingly preying on vulnerable online sports bettors,” said Sen. Matt Ball during debate on the bill.
“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.
“As online sports betting continues its rise in popularity, we must ensure there are reasonable protections in place to help prevent addiction, protect underage Coloradans, and uphold the integrity of the game and its athletes”.
Deposit Caps and Ad Rules Proposed
SB 26-131 would prohibit licensed internet sportsbooks from accepting more than five separate deposits from one person within a 24-hour period, according to the bill summary. Later reporting on Senate amendments indicated lawmakers raised that threshold to six deposits in the approved version.
The legislation would also stop operators from sending push notifications or text messages that solicit bets or deposits from account holders in Colorado.
Advertising would face additional limits. Sports betting promotions could not include enhanced payout offers or instructions on how to place a wager. Broadcast advertisements would also be barred from airing between 8 a.m. and 10 p.m. or during a live athletic competition.
The bill also requires sportsbooks to follow new standards when hiring and paying third-party marketing companies.
Colorado’s Division of Gaming would receive annual operator data and metrics for the prior calendar year. Those figures would be compiled into a public report every three years beginning Jan. 1, 2029, with confidentiality protections included.
Another amendment would prohibit marketing aimed at people under 21 across broadcast, cable, radio, print and digital channels.
Prop Bet Ban Removed After Revenue Debate
An earlier version of the bill included a ban on proposition wagers. That proposal would have covered bets tied to an athlete’s performance, officiating decisions, penalties, injuries or outcomes other than the final score or result.
Lawmakers later removed that language after concerns about lost tax revenue and industry opposition.
As reported by the Longmont Reader, Rep. Matt Ball told Axios Denver he wanted to preserve broader parts of the measure, including limits on credit card betting and bonus-related promotions. Operators argued that additional restrictions could send bettors to offshore or illegal markets.
According to legislative discussion cited in later coverage, Colorado projected a loss of $800,000 in state revenue next year after amendments, compared with an earlier estimate of $2.4 million if the prop ban remained.
The bill still includes a prohibition on accepting deposits by credit card in connection with sports betting. Violations would constitute a class 2 misdemeanor, and regulators could issue penalties of up to $25,000.
The legislation also seeks to stop sportsbooks from reducing bet size or deposit frequency simply because a customer consistently gains a financial benefit, unless suspicious activity or signs of gambling disorder are present.
Self-Exclusion Measure
A separate measure, Senate Bill 26-163, would place Colorado’s sports betting self-exclusion program into state law. Current Division of Gaming rules already allow players to exclude themselves, and fiscal analysts said codifying the practice should have minimal budget impact.
The same bill would repeal the Colorado Racing Commission and Division of Racing Events, transferring responsibilities to the Colorado Limited Gaming Control Commission and Division of Gaming.
Colorado has also expanded funding for responsible gaming. Regulators awarded $3.78 million in 2026 Responsible Gaming Grants supporting prevention, awareness, treatment, recovery, research and data collection.
The legislative push comes as sports betting remains a growing source of public revenue. Colorado reported more than $5 million in sports betting tax revenue in January and $3.4 million in February. Residents and visitors placed more than $6.3 billion in online sports wagers during 2025, according to figures cited by bill sponsors.