Colorado lawmakers have advanced a gambling reform bill without a proposed ban on prop bets, following committee approval to strip the measure from Senate Bill 131. The change came during a Senate Appropriations Committee vote on April 21, where members voted 5-2 to remove the provision from the wider legislation.
The bill’s sponsor, Sen. Matt Ball of Denver, accepted the amendment introduced by Sen. Chris Kolker in order to keep the remainder of the proposal moving forward. The decision followed discussions about fiscal pressure and industry influence during the legislative process.
Prop bets, short for proposition bets, allow wagers on specific in-game outcomes such as a player’s performance rather than the final score. While widely used, critics have linked them to more compulsive gambling patterns due to their rapid and continuous nature. The NCAA has previously called for a national ban, citing concerns over student-athletes and competitive integrity.
Budget Pressures Influence Legislative Direction
Despite concerns raised by public health advocates, lawmakers faced competing financial priorities. Colorado’s sports betting sector has become a significant revenue source for the state, with the Colorado Division of Gaming reporting that wagers exceeded $6.5 billion in 2025.
Fiscal analysis indicated that banning prop bets would reduce tax revenue by approximately $2.4 million, funds designated for water infrastructure projects. Lawmakers also noted the influence of lobbying efforts during negotiations.
By removing the ban, the estimated financial impact of the legislation decreases to around $800,000.
Prop bets have remained a major segment of sports wagering in Colorado since online betting was legalized in 2020. These wagers include predictions on individual player outcomes, such as how many points an athlete will score or specific in-game events. They can also be bundled into parlays, increasing complexity and potential payouts.
Public health advocates have raised concerns that such betting formats may increase risk due to their accessibility during live games. Ball also previously compared the constant availability of these wagers to “slot machines in your pocket,” highlighting concerns over addictive behavior.
Remaining Restrictions and Legislative Outlook
SB 131 still includes several consumer protection measures aimed at limiting gambling harm. If passed, it would restrict sportsbook marketing terms such as “bonus bet” or “no sweat,” and limit push notifications and text promotions.
It would also introduce an advertising blackout between 8 a.m. and 10 p.m., including during live sports broadcasts. Bettors would be limited to five deposits per 24-hour period and barred from using credit cards.
The Colorado Gaming Control Commission would gain authority to issue fines of up to $25,000 for violations.
The bill now advances to the full Senate and then the House. Further changes remain possible as debate continues, particularly around advertising rules.
Broader Gambling Policy Debate Continues
Alongside SB 131, other gambling-related proposals remain under consideration in the state legislature. These include measures affecting lottery operations and regulatory restructuring within Colorado’s gaming oversight system.
SB 131 is expected to reach debate on the Senate floor as lawmakers continue weighing consumer protection measures against fiscal considerations tied to gambling revenue.
Source:
“Prohibition on prop bets stripped from Colorado problem gambling bill”, denverpost.com, April 24, 2026
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