Colorado Moves to Rein In Sports Betting Ads and Deposits

Colorado is tightening its grip on the sports betting industry. Two new bills are moving through the state legislature, targeting everything from sportsbook advertising to deposit limits, and Colorado sports betting regulations could look significantly different if both measures clear the House.

The centerpiece of the push is Senate Bill 26-131, which cleared the Colorado Senate on a 20-14 vote and now heads to the House for further consideration. Senator Matt Ball, who championed the legislation, made his concerns clear during floor debate. He argued that algorithmic targeting and aggressive advertising are pulling vulnerable bettors deeper into harmful patterns, and that the state has not kept pace with how much the industry has changed since legalization in 2019.

What SB 26-131 Would Change

The bill covers a lot of ground. It would cap deposits at six per person within any 24-hour period, and it would ban sportsbooks from sending push notifications or text messages that solicit bets or new deposits from existing account holders.

Advertising restrictions go further. Broadcast sports betting promotions could not air between 8am and 10pm or during live sporting events. Any promotion featuring enhanced payout offers or step-by-step wagering instructions would also be off the table. On top of that, the bill would ban marketing aimed at people under 21 across broadcast, cable, radio, print, and digital channels. Sportsbooks would also face new standards governing how they hire and compensate third-party marketing agencies.

One provision that flew under the radar targets sharp bettors specifically. Under the bill, operators could not reduce a customer’s bet size or deposit frequency simply because that customer consistently turns a profit. The only exceptions would be suspected fraud or signs of a gambling disorder.

Credit Card Ban and Penalties

SB 26-131 would prohibit sportsbooks from accepting credit card deposits in connection with sports wagering. Violations would constitute a class 2 misdemeanor, and regulators could issue financial penalties of up to $25,000 per breach. The Colorado Division of Gaming would also receive annual data from operators, compiled into a public report every three years starting January 1, 2029.

The Prop Bet Ban That Didn’t Make It

An earlier version of the bill targeted proposition wagers. That version would have banned bets tied to individual athlete performance, officiating decisions, injuries, or any outcome other than the final score. Lawmakers pulled it after operators raised concerns that stricter limits would drive bettors to offshore and illegal markets.

The revenue math played a role too. Colorado projected it would lose $800,000 in state tax revenue the following year if the prop bet ban stayed in the bill. An earlier estimate had put that figure at $2.4 million if the restrictions had remained in their original form. That gap was enough to shift the vote. The credit card ban and advertising limits survived, but proposition bets stayed legal.

The Self-Exclusion Bill

The second measure, Senate Bill 26-163, would formally write Colorado’s sports betting self-exclusion program into state law. The Division of Gaming already operates the program under existing rules, so codifying it into statute is largely a structural move. Fiscal analysts projected minimal budget impact. The same bill would dissolve the Colorado Racing Commission and the Division of Racing Events, shifting those responsibilities to the Colorado Limited Gaming Control Commission and the Division of Gaming.

A Market That Has Grown Fast

The legislative push comes against a backdrop of rapid market growth. Colorado bettors placed more than $6.3 billion in online sports wagers during 2025. The state collected more than $5 million in sports betting tax revenue in January alone and $3.4 million in February. The state also awarded $3.78 million in 2026 Responsible Gaming Grants, funding prevention, treatment, research, and recovery programs.

Colorado sports betting regulations are catching up to a market that outgrew its original framework. Both bills reflect a broader recognition that the tools legal sportsbooks use today, from targeted push notifications to algorithmic nudges, simply did not exist in the same form when voters approved legalization. SB 26-131 still needs House approval before it becomes law, and the final text could change further before that vote.