Colorado is preparing to transform its online sports betting market. A new bill introduced in the state’s General Assembly seeks to establish concrete limits on practices that, according to legislators and experts, are causing economic and social harm to bettors. The initiative comes at a time when sector figures have reached historic levels and calls to problem gambling helplines are recording a steady increase.
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Introduced on February 25, Senate Bill 26-131 (SB 26-131) establishes a set of new obligations and prohibitions for licensed online sports betting operators in Colorado. The proposal was driven by Senator Matt Ball, who defines it as a pragmatic response to an industry that has grown without sufficient controls since its legalization in 2019.
The legislator, who has served as a fantasy league commissioner since 2010, emphasized that the initiative would not prevent a bettor from making a common bet, but rather aims to establish reasonable safeguards against practices considered abusive or harmful.
The explosive growth of the betting market in Colorado
Since Colorado legalized sports betting in 2019, the market has not stopped expanding. According to General Assembly data included in the note attached to the bill, in 2025 the volume of online sports betting exceeded $6.300 million, representing a 130% increase compared to 2020 records.
This accelerated growth has been accompanied by documented negative consequences: more calls to assistance hotlines for people with gambling problems, greater bettor debt, and an increase in social problems linked to online betting. SB 26-131 arises, precisely, as an institutional response to these indicators.
Deposit limits and protection for the winning bettor
Among the most prominent measures of the bill is a limit of five deposits per person in a 24-hour period. The provision seeks to reduce the intensity of compulsive gambling by establishing minimal friction in the balance reload process.
The text also includes a novel protection: operators could not restrict the size of deposits or the frequency of bets for a user simply because they win consistently, unless their activity is identified as suspicious or indicative of a gambling disorder.
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Advertising restrictions: fewer incentives, fewer hours
The advertising component of SB 26-131 is one of the broadest. Sports betting advertisements could not include terms like ‘bonus’, references to enhanced payouts, or explanations on how to place bets. Additionally, advertising broadcast between 8:00 and 22:00 hours and during live sports competitions would be prohibited.
The bill also prohibits compensation contracts in which a third-party marketer receives payment based on the number of new customers acquired, the total volume bet, or the results of the bets. This practice, common in affiliate marketing, is considered an incentive that encourages aggressive bettor acquisition without consideration for their well-being.
Prohibition of the use of credit cards for betting
The use of credit cards, directly or indirectly, to fund sports betting accounts would be prohibited under the new regulations. Non-compliance could result in a class 2 offense and fines of up to $25.000. This measure is aligned with similar policies adopted in other jurisdictions to reduce debt associated with gambling.
Additionally, operators could not send push notifications or text messages to account holders in Colorado soliciting bets or deposits, nor offer proposition bets linked to the performance of individual athletes or specific events of a match.
Current status of the bill and outlook
SB 26-131 is currently under review in the Colorado Senate Finance Committee. Its sponsors present it as a necessary recalibration of the current regulatory framework, adapted to the new context of sustained expansion of online gambling. If the bill moves forward, Colorado would join a growing trend in the United States of reviewing and tightening the regulation of online sports betting, especially regarding advertising, responsible gambling tools, and access to credit for betting.
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