Colorado lawmakers are moving to place new limits on online gambling after years of rapid expansion driven by mobile sports betting and digital lottery access. Since voters approved legal sports wagering in 2019, the market has grown into a multibillion-dollar industry, with widespread advertising and increased participation across the state.
Two bills advancing through the legislature aim to reshape how residents engage with betting platforms. Senate Bill 26-131 focuses on sports wagering practices, while another proposal targets the expansion of online lottery games.
Proposed Limits on Betting Activity
SB 26-131 would introduce restrictions on deposits, advertising, and certain wager types. The bill caps how often users can deposit funds within a 24-hour period and prohibits the use of credit cards for sports bets. It also seeks to ban proposition bets tied to individual player performances and limit gambling-related advertising during times when younger audiences are likely watching.
State Sen. Matt Ball said: “This bill is to put common sense guardrails on online sports betting. At this point, online sports betting, for a lot of people, is the same as having a casino in your pocket. And that is leading to a huge spike in gambling addiction.”
He added: “I’ve been the commissioner of a fantasy baseball league for 15 years. We’re not getting in the way of legal sports betting that’s practiced between friends. What this bill is doing is with the deposit limit is saying you can’t continue to make deposits and chase your losses more than five times in a 24-hour time period. You could still put in 500 bucks and then go make as many bets as you want any given Sunday.”
The measure also restricts push notifications from betting apps. Ball said: “If you’re addicted to gambling, having push notifications is like having somebody tell an alcoholic every couple of seconds, do you want a drink? Do you want a drink?”
Concerns Over Growth and Revenue
Lawmakers backing the bill point to rising betting volumes and potential harm. In recent years, wagers have climbed into the billions, while tax revenue has funded water conservation efforts, including more than $100 million allocated since 2020.
Industry representatives warn that tighter rules could reduce revenue and push bettors toward unregulated platforms. Ball dismissed those concerns, stating: “We’re not too worried about the fiscal note, because this is money that does not impact the general fund. […] What our fiscal note actually shows is that Colorado is going to continue to get more and more tax revenue that will go to water year after year, even if this bill passes.”
Debate Over Online Lottery Expansion
A separate bill would halt the rollout of fully digital lottery games, including those that allow purchases through mobile devices and credit cards. Lawmakers supporting the measure argue that expanded access could increase financial risks for some users.
Both proposals have cleared initial committee stages and will continue through the legislative process as Colorado weighs tighter oversight of its growing online gambling sector.
Source:
“Online gambling is big business in Colorado. Lawmakers want to change that”, cpr.org, March 24, 2026
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