A Colorado bill focused on responsible gaming and sports betting safeguards moved forward in the House earlier this week, with lawmakers emphasizing it is not intended to have a negative impact on the industry. The bipartisan Senate Bill 26-131, which cleared the state Senate the previous week, was recently approved by the House Finance Committee in a 9-2 vote.
During committee discussions on Senate Bill 26-131, sponsors emphasized that the measure is designed to address responsible gambling concerns without undermining the existing sports betting market. Speaking at Monday’s hearing, lead House sponsor Steven Woodrow emphasized the collaborative approach behind the legislation:
“Through stakeholder discussion and conversations with my co-prime sponsor, we want to be clear that we’re not trying to be antagonistic to the industry. We understand that voters approved sports betting. Just as a general matter, we appreciate the work that’s been done to reach a deal on this.”
The remarks came as lawmakers adopted an amendment by voice vote, removing earlier language that highlighted potential harms associated with sports betting.
Colorado legislators revised Senate Bill 26-131 as it moved through the process, narrowing its scope while retaining several core consumer protection measures. During a House hearing, co-sponsor Rep. Dan Woog outlined the bill’s current framework, which focuses on five primary provisions.
The proposal would introduce a cap of six deposits per bettor per sportsbook within a 24-hour window. It would also prohibit the use of credit cards for deposits, aligning online rules with existing retail standards. Rep. Woog, wagers should be placed using funds that are already available to the bettor.
Additional measures include restrictions on push notifications and unsolicited texts designed to influence betting activity, as well as tighter controls on advertising in channels where underage audiences make up a significant share. The bill also requires operators to provide anonymized betting data to regulators, to support policymaking that is informed by evidence of user activity.
Earlier versions of the legislation were more aggressive, featuring proposals such as banning prop bets, limiting certain broadcast advertising windows, and restricting sportsbooks’ ability to manage high-skilled bettors. Those provisions were removed through amendments in the Senate before the bill advanced to the House.
The measure has drawn backing from advocacy groups including the Campaign for Fairer Gambling, Healthier Colorado, and the Problem Gambling Coalition of Colorado. The hope is that the amendments to this bill can help maintain a competitive market.
However, the Sports Betting Alliance, whose members include FanDuel, DraftKings, BetMGM, Fanatics, and bet365, has pushed back against the bill.
The SBA has argued that some of the restrictions in Senate Bill 26-131 go too far and could have unintended consequences. These restrictions would make regulated sportsbooks less competitive compared to offshore sportsbooks.
Those platforms do not pay taxes in Colorado or adhere to consumer protection standards, meaning any shift in activity could reduce state tax revenue while exposing players to higher risks.
It remains to be seen whether the SBA’s push against Senate Bill 26-131 has any effect.
