The sports betting industry in Colorado faces significant regulatory changes as Senate Bill 26-131 advances to the House, introducing crucial protections for vulnerable bettors while balancing industry growth concerns.

• Deposit limits implemented: New law restricts deposits per 24 hours and bans credit card funding.
• Advertising heavily restricted: No broadcast promotions during 8am-10pm or live sports, plus elimination of "bonus bet" language.
• Operators can no longer limit bettors: Companies cannot restrict users based on betting activities.

Colorado sports betting has exploded from $1 billion to more than $6 billion wagered in just a few years, placing sports books in the pocket of nearly every resident. However, this rapid growth comes with concerning consequences. Calls to the state's gambling addiction hotline have jumped nearly 50% since legalization, while revenue raised by the sports betting tax totals roughly $30 million annually for state water projects. Senate Bill 26-131 aims to address these concerns by introducing significant protections for vulnerable populations. This legislation represents a turning point for Colorado online sports betting regulations. Discover the key provisions of this bill and what these changes mean for the future of sports wagering in Colorado.

Senate Bill 26-131: Key Provisions Explained

The Senate approved the Bill with a 20-14 vote on reconsideration Tuesday, following an initial 21-13 passage. The legislation now advances to the House Finance Committee with several core protections intact.

SB 26-131 prohibits Colorado online sports betting operators from accepting more than five separate deposits from an individual within a 24-hour period. Credit card funding of betting accounts faces a complete ban, addressing concerns about users chasing losses with borrowed money. Operators can no longer limit bettors who receive financial benefits from their wagers or restrict users based on betting activities, unless those activities indicate a potential gambling disorder.

Advertising also faces strict new boundaries. Sportsbooks cannot broadcast promotions between 8 a.m. and 10 p.m. or during live athletic competition broadcasts. Marketing materials must eliminate language such as "bonus bet," "no sweat," or similar phrases. Push notifications and text messages soliciting bets are banned entirely. Operators must also refrain from marketing to individuals under 21 or advertising on programs where most viewers are underage.

The bill originally included a prop bet prohibition, but lawmakers removed this provision, reducing the fiscal impact from potentially $2.4 million to $800,000 in lost tax revenue. 

Political Support and Opposition 

Democratic Senator Matt Ball co-sponsored the legislation with Sen. Byron Pelton (R) creating a bipartisan framework for the reforms. The collaboration between parties, however, did not translate into unified voting patterns.

Pelton and Sen. Janice Rich stood as the only Republicans supporting SB-131's final Senate passage, while three Democrats broke from their party to oppose the bill - Dylan Roberts, Nick Hinrichsen, and Tom Sullivan cast votes against the measure.

Major Colorado online sports betting operators mounted significant resistance. DraftKings, FanDuel, BetMGM, and Bet365 actively lobbied against SB-131, joined by the Sports Betting Alliance industry group focusing their efforts on the deposit restrictions and advertising limitations imposed.

The NCAA had repeatedly called for states to ban prop bets, prompting several states to adopt the restriction. During committee deliberations last week, lawmakers removed the prop bet ban language after concerns emerged about tax revenue impacts. Ball noted the removal reduced the projected tax loss.

Now, the bill proceeds to the House Finance Committee for further consideration.

What These Changes Mean for Colorado Online Sports Betting

Revenue projections reveal the financial trade-offs embedded in these reforms. The credit card funding prohibition alone accounts for an estimated $800,000 in lost tax revenue. Operators have seen their Colorado revenues surge 67% between 2022 and the present, while total wagers climbed from $2.9 billion in 2021 to $6.5 billion last year. Tax revenue collected in December 2025 showed a whopping 211% jump compared to December 2024.

But the human cost behind these numbers was one of the biggest drivers of this legislation. Gambling Addiction hotline calls in Colorado jumped 45% in the first year following legalization and so far more than 1,146 Coloradans have enrolled in the self-exclusion registry. A UCLA study awaiting publication was mentioned that found substantial increases in average bankruptcy rates, debt sent to collections, use of debt consolidation loans, and auto loan delinquencies in all states with legal sports gambling.

Legislative roadmap for other states?

Senate Bill 26-131 represents a critical shift for Colorado sports betting and may impact other states grappling with the same issues. The legislation introduces deposit limits, credit card bans, and advertising restrictions despite opposition from major operators. While the bill may reduce tax revenue by $800,000, it prioritizes protection for vulnerable bettors. As the measure advances to the House Finance Committee, Colorado faces a crucial decision about whether short-term revenue losses justify long-term social benefits. Other states are following this legislation closely as similar arguments for limiting the scorpe of internet betting have arisen around the U.S.