Key Highlights
- Colorado lawmakers approved SB 26-131, establishing the nation’s first prohibition on push notifications and text messages from sportsbook operators to bettors.
- Additional provisions include prohibiting credit card deposits, implementing daily deposit caps, curtailing advertising near youth audiences, and mandating anonymized data reporting to state officials.
- Major operators through the Sports Betting Alliance—including FanDuel, DraftKings, BetMGM, and others—contend these measures may drive bettors to illegal offshore platforms.
- While most responsible gambling organizations endorse the legislation, some propose an opt-in notification system would better balance consumer protection with personal choice.
- Governor Jared Polis must now decide whether to sign the measure; initial proposals that would have eliminated prop bets and restricted broadcast advertising were removed during legislative revisions.
On May 13, Colorado’s state legislature approved groundbreaking responsible gambling legislation that would establish the nation’s first statewide prohibition on sportsbook operators sending push notifications and text messages to players.
The measure, SB 26-131, received bipartisan approval in the Senate with a 20-15 vote following acceptance of House amendments. The legislation now awaits action from Governor Jared Polis.
Should the governor sign it, the law would prohibit all operator-initiated push notifications and text messages designed to encourage wagers or deposits. Additionally, it would establish limits on how many deposits a player may make in a single day.
The legislation extends well beyond notification restrictions. It prohibits funding sports betting accounts with credit cards, limits advertising exposure to younger audiences, and mandates that operators provide anonymized player information to state regulatory authorities.
Industry Response and Concerns
The Sports Betting Alliance, representing major industry players such as FanDuel, DraftKings, BetMGM, Fanatics, and bet365, has voiced strong opposition to the legislation. The coalition contends these regulations will diminish the competitive standing of licensed sportsbooks relative to illegal offshore and black-market alternatives.
The alliance has expressed concern that bettors may shift toward unregulated platforms that operate without consumer safeguards, age verification systems, or responsible gaming measures. They’ve also highlighted the potential for states to forfeit millions of dollars in tax revenue annually.
“These new restrictions would make the experience worse for adults who play by the rules,” the alliance stated on its website.
Sen. Matt Ball, one of the bill’s principal sponsors, dismissed the industry’s arguments. He noted that responsible gambling advocates haven’t raised concerns about the push notification prohibition—only the operators themselves have objected.
“There’s no evidence to suggest that people are going to flee the legal market because they’re no longer getting push notifications,” Ball said.
Ball characterized the legislation as a response to public health concerns arising from the explosive expansion of online sports wagering. He explained that sportsbooks function within a system of continuous, personalized digital interaction that makes disengagement difficult for individuals struggling with gambling addiction.
Perspectives from Responsible Gambling Organizations
The Problem Gambling Coalition of Colorado expressed support for the measure. Jamie Glick, the organization’s executive director, said the coalition favors regulatory approaches that minimize exposure to gambling promotions potentially linked to harmful behaviors.
Glick recognized that certain consumers might turn to unlicensed operators as a result of these restrictions. However, he emphasized that robust consumer protections remain critical to preserving confidence in the regulated marketplace.
“The goal of regulation should not be to maximize participation,” Glick said.
He acknowledged that the PGCC would have favored an opt-in notification framework instead of an outright prohibition. Such an approach, he explained, would maintain consumer autonomy while requiring explicit consent.
Josh Ercole, who leads Pennsylvania’s Council on Compulsive Gambling, expressed a more reserved perspective. He observed that responsible gambling challenges rarely present clear-cut solutions.
“The more restrictive you make things, the higher the likelihood is that somebody is just going to turn to an unregulated market,” Ercole said.
He noted that even well-intentioned policies don’t always produce their desired results.
The final version of the bill represents a significantly narrower scope than what legislators initially proposed. Original drafts contained prohibitions on prop bets, restrictions on broadcast advertising timeframes, and limitations on sportsbooks’ practices of restricting successful bettors. These elements were eliminated through the amendment process.
The measure has garnered endorsements from advocacy organizations including the Campaign for Fairer Gambling and Healthier Colorado.
Rep. Steven Woodrow, a co-sponsor of the legislation, emphasized that lawmakers aren’t attempting to antagonize the industry. He pointed out that Colorado residents voted to authorize sports betting, and the bill seeks to establish equilibrium between that decision and consumer protection measures.
New York’s legislature is currently considering similar push notification restrictions. A comparable proposal in Minnesota stalled without advancing in 2025.
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