Colorado lawmakers moved closer to approving broad new rules for online sports betting after two House committees advanced Senate Bill 26-131 ahead of the legislative session deadline.
The House Finance Committee approved the bipartisan proposal by a 9-2 vote earlier this week before sending it to the House Appropriations Committee. Days later, the Appropriations Committee advanced the measure unanimously in an 11-0 vote without discussion.
If the full House approves the legislation before Colorado’s legislative session ends on May 13, the bill will move to Governor Jared Polis for consideration. The Colorado Senate already passed the proposal last week in a 20-14 vote following several amendments.
Lawmakers have described the bill as one of the state’s largest sports betting policy updates since Colorado voters approved legal wagering in 2019.
Proposed Rules Target Gambling Activity
The legislation would introduce several restrictions aimed at limiting risky betting behavior and increasing oversight of sportsbook operations.
One major provision would prohibit online sportsbooks from accepting credit card deposits. The measure would also cap account holders at six deposits within a 24-hour period, an increase from an earlier version that proposed five deposits daily.
The bill would block operators and marketing affiliates from directing advertising toward individuals under 21 years old. Sportsbooks would also face restrictions on using push notifications, text messages, or similar prompts to encourage wagers or deposits.
Colorado lawmakers also included language preventing sportsbooks from advertising promotions using phrases such as “bonus bet” or “no sweat.”
Additional reporting requirements would require operators to provide annual data to regulators, with public reports scheduled every three years beginning in 2029.
Advertising Limits Narrowed During Debate
Several provisions changed during the legislative process as lawmakers debated the financial and operational impact of the bill.
An earlier draft proposed banning sports betting advertisements during live sporting events and between 8 a.m. and 10 p.m. Legislators later removed that section before the measure advanced through committee review.
Lawmakers also eliminated a proposed ban on proposition wagers involving officiating decisions, injuries, penalties, and individual athlete performances.
The prop betting restriction was removed after a fiscal analysis projected the state could lose approximately $2.4 million in sports betting tax revenue during the next year if the ban took effect.
An updated estimate tied to the credit card deposit restriction projected a smaller revenue decline of roughly $800,000.
Previous versions of the legislation also included measures involving limitations on successful bettors, though lawmakers revised those sections during negotiations.
Session Deadline Approaches
Colorado legislators face limited time to complete action on the measure before adjournment. The legislative session is scheduled to conclude on May 13, leaving the House less than a week to vote on the bill.
Supporters of the legislation say the changes would strengthen consumer protections and place additional responsibility on operators as the state’s online sports betting market continues to grow.
The proposal focuses heavily on gambling behavior safeguards through advertising controls, deposit restrictions, and financial limitations tied to sportsbook accounts.
If lawmakers grant final approval, Governor Polis will decide whether the measure becomes law and reshapes sports betting oversight in Colorado.
Source:
“Expansive Colorado sports betting bill heads to House floor“, sbcamericas.com, May 7, 2026
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