Colorado lawmakers have advanced legislation tightening oversight of the state’s online sports betting market, with the Senate passing Senate Bill 26-131 in a 20-14 vote. The measure now moves to the House and marks one of the most significant updates since voter-approved legalization in 2019.
The bill focuses on reducing harmful betting behavior while increasing operator accountability through deposit limits, advertising restrictions, and expanded reporting requirements.
Limits on Betting Activity and Operator Conduct
SB-131 requires online sportsbooks to cap user deposits at five transactions within any 24-hour period. It also prohibits push notifications, SMS messages, or similar prompts encouraging bets or deposits.
The legislation includes broader oversight measures requiring operators to submit annual data to regulators, later compiled into public reports every three years beginning in 2029.
Earlier provisions limiting successful bettors’ activity were included but adjusted during the legislative process.
Advertising Restrictions and Financial Rules
The bill tightens advertising rules by banning sports betting ads between 8 a.m. and 10 p.m. and during live sporting events. Promotions featuring enhanced payouts or instructions on placing bets are also prohibited.
Operators would be barred from accepting credit card deposits for betting accounts, adding a further financial safeguard for users.
A proposed ban on prop bets was removed during committee review after concerns over state revenue impacts.
Lawmaker Support and Industry Opposition
Sen. Matt Ball, a Democrat from Denver and sponsor of the bill, said the measure maintains voter intent while addressing rising concerns.
“Online sports betting has placed casinos in the pocket of nearly every Coloradan with little protections built in for those addicted to gambling or our young people,” Ball said in a written statement. “(SB-131) honors what voters approved in 2019 while making sure that an industry that has grown from $1 billion to more than $6 billion wagered in just a few years isn’t doing so at the cost of our families’ financial security, our kids’ wellbeing, or the integrity of the games we love.”
Republican sponsor Sen. Byron Pelton of Sterling supported the bill, citing harms seen across the state.
“Across rural and urban Colorado, families are seeing the very real harm that unchecked online sports betting can cause,”Pelton said. “We aren’t telling adults what to do, we’re putting basic consumer protections in place, especially for our kids, and making sure the industry is accountable when things go wrong.”
Several Republicans joined Democrats in both supporting and opposing the final vote.
Online operators including DraftKings, FanDuel, BetMGM, Bet365, and the Sports Betting Alliance have opposed the legislation.
Regulatory Context and Public Impact
Colorado legalized sports betting through Proposition DD in 2019 after a 2018 U.S. Supreme Court decision allowed states to regulate the sector. The state currentlyearns about $30 million annually in tax revenue, directed toward water projects.
Studies cited by advocates link legalization to lower credit scores and increased bankruptcy rates. Healthier Colorado reported rising demand for addiction support services.
Colorado’s legislative session is set to end May 13.
Source:
“Colorado Senate passes bill to curb ‘abusive practices’ in sports betting”, coloradonewsline.com, April 28, 2026
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