Colorado legislators have passed a law aiming to impose new limitations on online sports betting, including restrictions on daily deposits and a ban on promotional notifications from betting applications.
Senate Bill 131, now pending the approval of Gov. Jared Polis, could potentially make Colorado the first state in the U.S. to restrict daily deposits that a user can execute within a sportsbook application.
The new regulation would restrict individuals to a maximum of six deposits each day, although there won’t be any limitation on the amount deposited per transaction. Additionally, the bill will forbid gambling companies from sending push notifications that promote gambling activities or deposits.
Furthermore, the legislation would prevent the use of credit cards for deposits in sportsbooks, which advocates say is a measure designed to help avoid gambling with money that bettors do not possess. Currently, five of Colorado’s thirteen online sportsbooks already disallow credit card usage for deposits.
The Senate endorsed amendments made by the House on the final day of the legislative session, forwarding this bipartisan legislation to the governor’s office for evaluation.
Sen. Matt Ball, a Democrat from Denver and one of the bill’s proponents, explained that studies have connected frequent deposits into online betting accounts with higher instances of risky gambling behavior.
“Thus, establishing deposit limits is widely acknowledged as a beneficial harm-reduction strategy aimed at introducing some resistance, mitigating loss-chasing tendencies, and minimizing severe consequences, especially for those who gamble intensely,” he remarked.
Ball also pointed out that repeated push notifications may incite persistent wagering following losses and foster impulsive gambling habits.
Industry Concerns About New Regulations
The proposed bill encountered opposition from sportsbook operators and gambling associations throughout the session. Industry advocates argued that these deposit limits and advertising constraints could result in reduced revenues and customer dissatisfaction.
An earlier draft of the legislation even attempted to ban proposition bets, which enable wagers on individual player performances often bundled in parlays. However, this provision was excluded after significant pushback from the industry.
Operators claimed that proposition bets are popular with bettors due to their potentially higher payouts and the revenue they generate for sportsbooks.
Colorado’s sports betting market has consistently maintained a high level of wagering activity. In the first nine months of the 2025 fiscal year, bets surpassed $4.4 billion, yielding $27 million in tax revenue. Specifically, in September 2025, sportsbooks recorded $608.8 million in wagers and generated $46 million in gross gaming revenue. Tax revenue from this sector is partially allocated to Colorado’s water conservation initiatives.
Discussion on Gambling Addiction Persists
Between 6 million and 10 million Americans qualify as having a severe gambling disorder, with an additional 10 million to 15 million deemed at risk. Young adults aged 18 to 34, men, and mobile sports bettors were highlighted as particularly vulnerable groups.
Proponents of the legislation assert that these measures respond to behavioral cues associated with problematic gambling and online betting activities.
Brianne Doura-Schawohl, director of the Campaign for Fairer Gambling, characterized the law as offering “groundbreaking consumer protections” and urged Polis to endorse the initiative.
Eric Maruyama, a spokesperson for the governor, confirmed that Polis will examine the finalized version of the bill.
State-Level Consumer Protection Initiatives
If enacted, this legislation could serve as a benchmark for other regions evaluating responsible gambling regulations connected to online wagering platforms.
Federal regulations like the Unlawful Internet Gambling Enforcement Act of 2006 and the Wire Act set the framework for interstate gambling and financial transactions, while harm-reduction strategies largely fall under state jurisdiction.
This proposal arises amidst the expanding landscape of legalized sports betting across the nation. Currently, 39 states in the U.S., along with Washington, D.C., and Puerto Rico, have legalized sports betting in some capacity, with 30 states allowing online or mobile wagering.