Colorado Gov. Jared Polis has signed an expansive sports betting bill that implements new responsible gaming standards and procedures for operators and bettors in the state.
Polis signed Senate Bill 26-131 on Monday, a measure making sweeping changes to Colorado’s sports betting market by adding new requirements aimed at protecting bettors in the state. The bill includes a landmark provision for regulated gaming in the U.S. related to how sportsbooks communicate with bettors.
What changes are being made to Colorado sportsbooks?
The Colorado sportsbook measure implements several sports betting-related changes in the Centennial State:
- The bill makes Colorado the first state to prohibit the delivery of push notifications or texts to solicit bets
- Bettors are no longer allowed to use credit cards to fund player accounts
- Operators are barred from using “bonus bet” or “no sweat” language in marketing
- Bettors are limited to six separate deposits for a sportsbook in a 24-hour period
- Marketing affiliates and operators are banned from targeting people under the age of 21
- The Colorado Gaming Control Commission can levy penalties of up to $25,000 for violations.
“After months of work alongside recovery advocates, health care professionals, and families across Colorado, SB26-131 is now law,” said co-sponsor Sen. Matt Ball. “This law puts guardrails on an industry that has ballooned in Colorado to more than $6 billion in annual wagers in just a few years. That growth has come at a real cost to families’ financial security, to kids’ wellbeing, and to the integrity of the games we love.”
The new rules will go into effect on Aug. 12.
Bill’s pathway to becoming law in Colorado
The CO sports betting bill underwent several amendments during its legislative process that began with its introduction in the Senate in February, with its passing in the chamber two months later.
The bipartisan measure garnered approval by several House subcommittees before the chamber passed the bill on May 9 with amendments that later received approval from the Senate. The Senate’s approval of the amendments allowed the bill to reach Polis’s desk.
“It is heartening to see the Colorado legislature prioritize the well being of its constituents with these revolutionary consumer protections,” said Brianne Doura-Schawohl of the Campaign for Fairer Gambling after the House and Senate both advanced the legislation.
Previous version sought a prop ban
A previous version of the legislation proposed a prop wager ban in Colorado.
The proposed ban on prop betting markets extended to officiating decisions, injuries, penalties, and athlete performances. The provision was included to protect both bettors and athletes, but the proposed prop ban was removed after a fiscal note was published. The fiscal note projected a $2.4 million decline in state tax revenue from sports betting in the next year with a ban on prop betting markets imposed in the Centennial State.
Meanwhile, an updated fiscal note projects an $800,000 decline from a credit card ban.
Lawmakers also previously considered a ban on sports betting advertisements during live sporting events that did not advance. The removed provision proposed an ad ban between 8 a.m. and 10 p.m.
