Key Highlights
- Senate Bill 26-131 secured passage with a 20-14 margin, advancing to the House for consideration
- The legislation eliminates credit card funding options and limits account holders to six daily deposits
- Broadcast advertising for sports wagering would be prohibited between 8 a.m. and 10 p.m. during live sporting events
- Provisions targeting proposition betting were eliminated following projections of $2.4 million in lost tax revenue
- Operators would lose the ability to send promotional notifications or messages urging users to wager
Colorado’s legislative efforts to implement stricter oversight of online sports wagering advanced significantly this week. On April 29, the state Senate approved Senate Bill 26-131 in a 20-14 decision.
The legislation proceeds to the House for review. It establishes multiple new responsible gaming requirements that would reshape operational practices for betting platforms throughout Colorado.
During floor debate, Sen. Matt Ball highlighted concerns about aggressive marketing tactics within the gambling sector. He characterized algorithms and promotional content as tools that are “increasingly preying on vulnerable online sports bettors.”
Ball referenced the transformation of the industry following Colorado’s 2019 decision to authorize online sports wagering. According to Ball, the sector’s explosive expansion has contributed to rising rates of gambling-related harm.
Core Provisions of the Legislation
The most significant component involves prohibiting credit card transactions for sports betting deposits. This restriction is anticipated to account for the majority of expected revenue reductions associated with the bill.
Additionally, the measure establishes a maximum of six daily deposits per individual account. Previous iterations of the legislation had proposed a five-deposit threshold.
Advertising limitations represent another substantial element. Sports betting commercials would face a blackout period from 8 a.m. to 10 p.m. on broadcast networks when live sporting events air.
All promotional content targeting individuals under 21 would be prohibited across broadcast television, cable networks, radio, print publications, and digital channels. Gaming operators would also forfeit permission to distribute push notifications or text communications designed to stimulate betting activity.
Companies would be restricted from employing promotional terminology including “bonus bet” or “no sweat” in advertising campaigns.
The bill mandates licensed operators submit comprehensive public disclosures every three years beginning in 2029. These filings would outline revenue streams and wagering patterns.
Player Performance Betting Restrictions Dropped
Previous versions of the legislation contained language that would have eliminated wagers related to individual athlete statistics, referee decisions, penalty calls, and injury-related outcomes. This section was excised prior to the Senate vote.
The removal followed analysis by the Senate Appropriations Committee of a fiscal impact assessment. The evaluation projected that maintaining the player performance betting prohibition would eliminate $2.4 million in state tax collections from sports wagering.
Even without this restriction, Colorado officials project approximately $800,000 in lost tax revenue for the upcoming fiscal year due to remaining provisions.
A comparable scenario unfolded in Louisiana during the current legislative session. A state lawmaker there abandoned legislation to prohibit proposition betting following fiscal analysis indicating nearly $21 million in annual revenue losses.
The Appropriations Committee approved SB 26-131 by a slim 4-3 margin following removal of the proposition betting language.
Bill advocates have characterized the effort as cross-partisan. Legislative sponsors argue the measure seeks to establish safeguards for consumers while maintaining regulatory oversight of the industry.
The legislation currently awaits action from the House Appropriations Committee, which faces a May 11 deadline for consideration.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
