Colorado’s sports betting industry is set to operate under a significantly revised regulatory framework after Governor Jared Polis signed Senate Bill 26-131 into law. The legislation introduces new consumer protections that include limits on deposits, restrictions on payment methods, and tighter controls on advertising practices. The changes will take effect on August 12, 2026.
The law marks one of the most substantial adjustments to the state’s wagering rules since sports betting was legalized in 2019. Lawmakers have framed the measure as a response to rapid market growth and concerns about consumer protection, particularly in relation to problem gambling and marketing exposure.
New Deposit and Payment Restrictions Introduced
Under the new rules, sports bettors in Colorado will be limited to a maximum of six deposits within any 24-hour period. In addition, operators will no longer be permitted to accept credit card payments for funding sports betting accounts.
The legislation also introduces some of the most restrictive marketing rules of its kind in the United States. Sportsbooks and affiliated marketers are prohibited from sending push notifications or text messages that encourage users to place bets or make deposits. Promotional language such as “bonus bets” or “no sweat” offers is also banned under the law.
Enforcement authority rests with the Colorado Gaming Control Commission, which can issue penalties of up to $25,000 for violations. The law also prohibits operators from targeting individuals under the age of 21, reinforcing safeguards aimed at younger audiences and other vulnerable groups.
Bill Evolution and Legislative Support
SB 26-131 was introduced with bipartisan sponsorship from Senators Matt Ball (D-Denver) and Byron Pelton (R-Sterling), along with Representatives Steven Woodrow (D-Denver) and Dan Woog (R-Erie). The bill passed through both chambers with notable cross-party support, clearing the Senate 20-14 and the House 50-13.
Earlier versions included bans on proposition bets and live advertising during certain hours, but both were removed after fiscal analysis projected revenue losses. The final bill carries an estimated $800,000 fiscal impact due mainly to the credit card restriction.
Supporters and Industry Concerns
Senator Matt Ball said: “This law puts guardrails on an industry that has ballooned in Colorado to more than $6 billion in annual wagers in just a few years. That growth has come at a real cost — to families’ financial security, to kids’ well-being, and to the integrity of the games we love.”
Healthier Colorado said 73% of residents believe legalization worsened problem gambling. Executive director Joshua Ewing called SB 26-131 “the most comprehensive set of online sports betting protections in the country.” Brianne Doura-Schawohl also supported the measure.
Operators including FanDuel and DraftKings warned the rules could push users to unregulated markets and reduce state revenue. DraftKings executive Stanton Dodge highlighted concerns given Colorado’s $850 million budget deficit and reliance on regulated gambling funds for water conservation.
SB 26-131 marks a major shift in Colorado’s sports betting regulation ahead of its 2026 implementation.
Source:
“Colorado Enacts New Limits and Safeguards for Sports Betting”, news.worldcasinodirectory.com, Jun 3, 2026
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