Colorado Bill Increasing Sports Betting Protections, Eliminating Prop Bets Moves Forward

• A Colorado bill designed to increase sports betting protections and eliminate prop bets in the state has moved forward
• Sen. Matt Ball’s (D-31) bill was moved out of the Senate finance committee
• The bill will prohibit credit card use for sports betting accounts, limit account deposits, and eliminate prop bets in the state

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A bill designed to revamp Colorado sports betting protections has been approved by the Senate Finance Committee, but several senators expressed concerns over details in the proposed legislation.

The Colorado Senate Finance Committee approved Sen. Matt Ball’s (D-31) bill, SB 26-131, by a 5-4 vote on Tuesday, March 17. The bill offers targeted solutions to protect underage Coloradans and residents struggling with gambling addiction. The legislation prohibits certain account deposit methods, eliminates push notifications or text message to solicit bets, and completely eliminates the prop betting market in the state.

“This bill takes a balanced approach. It does not undo what voters approved, it preserves a legal market for adults who choose to participate, but it also puts in place reasonable, common sense guardrails, because freedom and responsibility go hand in hand,” Sen. Byron Pelton (R-1), a bill co-sponsor, said during the committee meeting.

Bill Moves On, But With Reservations

After its approval, the bill moved forward to the Senate Committee on Appropriations.

Ball’s legislation, if signed into law, will prohibit the use of credit cards for sports gambling accounts and will limit sports betting users from depositing funds more than five times in a 24-hour period.

Additionally, the legislation will prohibit mobile phone push notifications or text messages soliciting bets, prohibit bonus payouts as promotional offers for placing an online sports bets, and restrict sports betting gambling advertisements during peak viewing hours. The bill will prohibit sports betting gambling advertisements in the state from 8 a.m. to 10 p.m., or during the broadcast of a live sports event.

The bill also seeks to completely eliminate prop betting markets in Colorado. If legalized, Colorado would be the first U.S. state to eliminate these markets.

While the bill did move on, several senators expressed concerns over portions of the legislation, particularly the elimination of prop bets.

Sen. Janice Marchman (D-15) said it is undeniable that there is harm being done in Colorado from sports betting, but voters have twice approved the form of gaming at the polls in 2019 and 2024. While many may not have understood what they were voting for in 2019 when sports betting was legalized, she said, more than 76% voted in favor of Proposition JJ in 2024, approving the state to retain tax revenue collected above $29 million annually from the tax on sports betting proceeds.

“They certainly knew what they were voting for in 2024,” she said.

If prop betting markets are to be eliminated, she said, it should not happen through a piece of legislation. Voters should have the final say on their elimination at the polls.

Marchman voted against the bill and urged its sponsors to hold the legislation over to address her concerns.

Sen. Marc Snyder (D-12) voted in favor of the bill, but expressed concerns over the potential loss of revenue with the elimination of the prop betting markets. The intentions of the legislation, he noted, are good but may have negative impacts on the state’s water fund.

The bill’s fiscal report shows a potential $2.4 million revenue decrease in 2026-27, a $2.6 million decrease in 2027-28, and a $2.7 million decrease in 2028-29.

“I think there’s a lot of work left to be done on this bill, but I will take you at your word that you’ll continue to work on this,” he said.

Sen. Chris Kolker (D-16) voted in favor of the bill and praised its element to block push notification to sports bettors phones. However, he questioned how sports betting advertising will be effectively blocked between 8 a.m. and 10 p.m., and during live sporting events, especially for national broadcasts It could be difficult to ensure the state is compliant with federal regulations if this restriction is in place.

The bill, he said, does contains more good than bad, so he urged its authors to continue working towards a solution as the legislation moved out of committee.

More Than Four Hours of Testimony

The Senate Finance Committee yesterday heard more than four hours of testimony on the proposed bill.

Cameron Onumah, policy director for the Sports Betting Alliance, spoke out against the bill on behalf of its alliance members bet365, BetMGM, DraftKings, Fanatics Sportsbook, and FanDuel.

This creates a “clear trade off for Colorado,” Onumah said to the committee.

“Less funding for water, weaker consumer protections, and more room for illegal an unregulated operators,” he said.

Since 2019, Onumah said sports betting has generated more than $100 million for Colorado’s water plan, including more than $30 million last year alone. The restrictions in this bill, he said, could cut water funding by more than 40% year over year.

Brianne Doura Schawohl, an international problem gambling expert and Director for the National Campaign For Fairer Gambling, noted that Maryland, a similar state to Colorado, recently reported that 5.7% of its total population has a gambling problem and nearly 50% of its total sports bettors experienced some level of gambling harm.

“The social cost and human lives that are in wake here deserve better. Thoughtful consideration about how to protect Coloradans, those who have been harmed, and will be harmed is greatly appreciated,” she said.