Colorado Sports Betting Protections Bill Moves Forward, But Time Running Out

• A Senate-approved sports betting bill to enhance safeguards for Coloradans has been moved forward by a House committee
• Sen. Matt Ball’s (D-31) bill will place limits on account deposits, prohibit credit card deposits, and institute other protections
• Colorado’s legislative session ends on Wednesday, May 13

A Senate-approved Colorado sports betting bill to enhance safeguards for state residents has been moved forward by a House committee, but time is running short for the bill as the legislative session is nearing an end.

The House Finance Committee approved Sen. Matt Ball’s (D-31) bill, SB 26-131, by a 9-2 vote earlier this week, moving the legislation forward to the House Appropriations Committee, which is scheduled to hear the bill on Thursday, May 7. The Senate approved the bill last week by a 21-13 vote.

The bill must be approved by the House Appropriations Committee and voted on by the House before the session ends on Wednesday, May 13.

Not a Ban on Sports Betting

The bill is not a ban on sports betting, sponsor Rep. Steven Woodrow (D-2) reported during the hearing, nor is it an attempt to relitigate the 2019 ballot measure that legalized Colorado sports betting.

“Coloradans made that decision and our job today is not to second guess them, but it is our job to make sure the product they were promised is the product they actually got,” Woodrow said.

If approved, the legislation 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.

This is not a restrictive number of deposits for a recreational sports bettor, Rep. Dan Woog (R-19).

“It is a guardrail against the pattern that defines the worst nights for the worst affected Coloradans; repeat deposits after losses while chasing,” he said.

Additionally, the legislation will prohibit mobile phone push notifications, text messages soliciting bets, and prohibit bonus payouts as promotional offers for placing an online sports bets. The legislation also allows the Colorado Gaming Control Commission to to assess a maximum penalty of $25,000 against a violator of a prohibition.

Originally, the bill prohibited all prop bets in the state. Question arose regarding the prohibition, with several legislators sharing concerns over reduced tax revenue if props were completely eliminated from the state. A fiscal estimate showed a complete prohibition of prop bets in Colorado would have reduced sports betting tax revenues by $2.4 million in 2026-27, $2.6 million in 2027-28, and $2.7 million in 2028-29.

The bill was amended to remove the controversial measure in the Senate Finance Committee. Without the prop prohibition, revenue decreases are only estimate to be about $800,000 in 2026-2027.

“Sports betting will continue in Colorado, state tax revenue will continue to flow to water projects as promised, especially given the drought we’re in now. What this bill does is challenge the most problematic features of the product that causes the most harm. We try to bring that in line with what a reasonable Coloradan in 2019 would have expected,” Woodrow said.

Less Transparency, Less Revenues, a Respectful No

Rep. Ryan Gonzalez (R-50) cast a “respectful no” against the legislation. Colorado voters have twice approved sports betting at the polls with a “clear expectation of a regulated, legal market that generate public revenue while giving adults the freedom to participate responsibly.”

This bill may potentially lead to a heavily supervised market while failing to address problem gambling at the source. If Coloradans want help, they can get help, he said, but you cannot help someone that does not want help.

“This could restrict the legal market and drive consumers to illegal and offshore operators that offer no safeguards, no oversight, and no benefit to Colorado tax payers. I think it could result in less transparency, less revenues, and greater risk to consumers, precisely opposite of what was promised when sports betting was legalized,” Gonzalez said.