Colorado Sports Betting Protections Bill Passes House

• Members of the Colorado House of Representatives approved Sen. Matt Ball’s (D-31) sports betting protection bill
• The House approved the legislation by a 50-13 vote
• The bill will place limits on account deposits, prohibit credit card deposits, and institute other protections

The Colorado House of Representatives approved a bill to increase protections for Colorado sports betting customers, which will place limits on sports betting account deposits, prohibit credit card deposits, and institute other protections in the state.

The Colorado House of Representatives approved Sen. Matt Ball’s (D-31) bill, SB 26-131, by a 50-13 vote with no discussion. The House did approve a small procedural amendment to the bill, so it will have to be approved by the Senate before it makes it way to Gov. Jared Polis (D) for his potential signature.

The bill will have to be sent to Gov. Polis prior to the end of the state’s legislative session on Wednesday, May 13.

Bill Whittled Down from Introduction

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.

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.

However, several prohibitions and restrictions were taken out of the original legislation after receiving criticism for being too detrimental to the state’s sports betting market. 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.

The final version of the Senate-approved bill also did not include a prohibition on sports betting advertisements during peak television viewing hours. The bill originally prohibited 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 Senate will take the bill up today for its potential final approval, which it is likely to receive, before being sent to Gov. Polis for a potential signature.

Trying to Preserve Voter Sentiments

Early on, Ball’s legislation received criticism for attempting to modify Colorado’s sports betting market too a far greater extent than needed in the name of safety.

During a March hearing of the bill in the Colorado Senate Finance Committee, Sen. Janice Marchman (D-15) said sports betting has likely caused some extent of harm in the state, 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.

Sen. Marc Snyder (D-12) voted in favor of the bill during the hearing, 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.

Legislators eventually passed and amendment in the Senate Finance Committee to remove the prop prohibition.