Colorado Gov. Jared Polis signed legislation this week aimed at strengthening consumer protections for sports betting. The new law, SB 26-131, prohibits the use of credit cards for sports betting deposits and places daily limits on the number of deposits users can make. Sponsored by state Sen. Matt Ball, the measure will take effect on Aug. 12.
Under the measure, bettors will no longer be allowed to fund sportsbook accounts with credit cards, with deposits capped at six within a single 24-hour period. The law also bans sportsbooks from sending promotional betting offers through text messages or mobile push alerts.
With the changes, Colorado becomes the first U.S. state to enact both a limit on daily sportsbook deposits and a statewide ban on betting marketing via push notifications.
The bill also grants the Colorado Gaming Control Commission authority to impose fines of up to $25,000 for violations of the new regulations.
Some of the bill’s original provisions, however, were removed during the legislative process following pushback from industry stakeholders and lawmakers concerned about economic impacts. An earlier version sought to ban all prop bets, which would significantly reduce sportsbook revenue and decrease state tax revenue.
Lawmakers ultimately stripped the prop bet ban from the proposal while it was under review in the Senate Finance Committee. Prop bets have become among the most popular wager types, especially with recreational bettors, so removing them would have been problematic.
The initial proposal also would have prohibited sportsbook advertising between 8 a.m. and 10 p.m., as well as during live sports broadcasts, but those restrictions were not included in the final version signed into law.
Colorado’s new sports betting law could become a model for other regulated markets looking to strengthen responsible gaming standards.
By limiting sportsbook users to six deposits within a 24-hour period, lawmakers are attempting to curb impulsive gambling behavior and excessive spending. Repeated deposits within short timeframes can be a warning sign of problem gambling, so this is a helpful move.
The ban on credit card deposits prevents bettors from wagering with borrowed money, reducing the risk of players accumulating debt tied to gambling losses.
Removing push notifications and promotional betting text messages gets rid of aggressive sportsbook advertising. Constant mobile alerts encouraging wagers can contribute to impulsive betting habits, especially during live sporting events.
Just imagine trying to watch the game, telling yourself you’re taking a break from betting, and then getting an update on an odds boost with your favorite player. It’s an issue for players trying to curb their problem gambling.
By removing direct promotional notifications, the state is aiming to reduce high-frequency betting prompts that keep users constantly engaged.
As more states evaluate the long-term impact of legalized sports betting, Colorado’s approach may serve as a benchmark for future consumer protection legislation across the country.
