Colorado lawmakers have moved forward with legislation that reshapes how online sports betting operators interact with customers, advancing a bill that introduces new funding restrictions, advertising limits, and changes to deposit rules.
The measure, Senate Bill 26-131, passed the Colorado House in a 50-13 vote and now heads toward final consideration before reaching Governor Jared Polis. With the state legislature scheduled to adjourn on Wednesday, the bill is positioned for either a 10-day or 30-day review window depending on when it reaches the governor’s desk. Polis may sign the bill, veto it, or allow it to become law without action.
If enacted, the law would take effect 90 days after adjournment, meaning enforcement could begin as early as August 12.
Originally introduced with broader restrictions, including limits on proposition bets, the bill was modified during its legislative process. The final version still focuses on consumer protection measures but adjusts several operational rules for sportsbooks.
Payment and Deposit Rules Updated
A key provision bans credit card funding for online sports betting accounts. Colorado would become the second state in the current cycle to adopt such a restriction, following Virginia, where a similar ban begins July 1.
At the same time, lawmakers expanded deposit flexibility. The bill increases allowable deposits within a 24-hour “gaming day” from five to six. A gaming day is defined as a continuous 24-hour period, and no monetary cap applies to deposits.
Earlier versions proposed tighter limits on deposits, but those provisions were revised during the legislative process.
Advertising and Communication Restrictions Expanded
The legislation also introduces new limits on how operators can communicate with users. Push notifications, including alerts sent by online sportsbooks, will be prohibited if they relate to encouraging bets or deposits on betting platforms.
In addition, advertising rules have been tightened. Sports betting promotions will no longer be allowed across broadcast, cable, radio, print, or digital channels if the majority of the audience is expected to be under the age of 21. However, the restriction does not apply to public venues where audience demographics cannot be clearly determined.
Lawmakers also made adjustments to provisions involving sports governing bodies. Under the revised language, any financial transfers directed to the state’s water plan fund must not fall below previous year levels, provided sufficient funds are available.
Broader Regulatory Direction
The bill continues Colorado’s post-legalization regulatory approach, following voter approval of online sports betting in 2019. Earlier drafts included stricter controls on betting activity and operator conduct, but several measures were scaled back during legislative negotiations.
Previous versions limited deposits to five per day and included broader restrictions on operator messaging. Those provisions were revised before final passage in the House.
The legislation also introduces ongoing reporting requirements for operators, with data submitted to regulators for future public reporting cycles.
If signed, the law would mark a significant update to Colorado’s sports betting framework, focusing on payment restrictions, communication controls, and deposit structure adjustments while maintaining regulated market operations.
Source:
“Colorado Bill That Would Ban Credit Cards, Push Notifications Passes House”, ingame.com, May 11, 2026
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