Published on: May 14, 2026, at 04:26h.
Updated on: May 14, 2026, at 04:26h.
- Transformations are coming to Colorado’s sports betting landscape
- New regulations could allow for six deposits daily
- Daytime and evening sports betting advertisements may be prohibited
In Colorado, legislators have put forward a proposal to revamp the state’s online sports betting framework. If Governor Jared Polis (D) approves Senate Bill 131, a set of market regulations will take effect.
Senators Matt Ball (D-Denver) and Byron Pelton (R-Logan) introduced SB131, which passed the Senate with a 20-14-1 vote on April 28. The House supported a modified version of the bill with a 50-13-2 vote on May 9, followed by Senate approval of the changes with a 20-15 vote on Tuesday.
This legislation is set to significantly change Colorado’s online sports betting scene.
A key consumer-friendly provision mandates that successful bettors – often referred to as sharp bettors – cannot be restricted by sportsbooks. Although sportsbooks can still set maximum bets on specific lines, they won’t be able to limit individual customers.
Impacts on Sportsbooks
Colorado sportsbooks opposed SB131, arguing it could adversely affect the legal sports betting landscape, potentially driving bettors toward unregulated offshore betting sites, local bookmakers, or prediction markets.
The lobbying efforts of sportsbooks yielded some results. An earlier draft of SB131 aimed to ban player proposition bets, which rely on individual players’ performance, keeping bettors engaged during games.
In Colorado, prop bets constitute a significant portion of the betting activity. The Appropriations Committee recommended retaining these bets after learning that their removal could lead to an annual tax loss exceeding $1.6 million for the state.
Additionally, the final version of SB131 increased the limit to six deposits within a 24-hour period for bettors, up from the initially proposed five.
“Deposit limits are widely acknowledged as effective strategies to mitigate harm, slow down loss-chasing behavior, and reduce extreme outcomes among heavy users,” Ball commented, as reported by The Denver Post.
However, not all demands from the industry were met. SB131 still prohibits the use of credit cards for deposits, and sportsbooks cannot send push notifications via apps or texts to encourage bets and deposits.
Should the bill be signed by Polis, oddsmakers will also face bans on advertising from 8 am to 10 pm and during all live sports broadcasts.
Protecting Consumers
Colorado’s sports betting sector has experienced rapid growth, with significant transactions reported over the past five years.
As of Wednesday, the Colorado Department of Revenue disclosed that taxes collected for the current fiscal year have surged by 36%, totaling $36.4 million. Notably, tax revenue for March skyrocketed by 103%, reaching $4.4 million.
“The impressive figures from March highlight the sustained growth and public enthusiasm for regulated sports betting in Colorado,” noted Christopher Schroder, director of the Division of Gaming.
“As the industry expands, we remain focused on consumer protection. We strongly encourage all bettors to make use of the responsible gaming tools provided, such as setting limits on their time and wagers, and to visit BetSmart.Colorado.gov for guidance on responsible gaming practices,” Schroder added.