Colorado lawmakers have decided to retract a proposed restriction on proposition betting within a broader sports betting reform initiative, modifying the focus of Senate Bill 131 due to concerns over potential revenue implications and feedback from the industry.
The amendment, which received approval on Tuesday, removes a clause that would have limited wagers on particular in-game occurrences, often referred to as prop bets, while keeping other regulatory aspects of the bill intact.
This decision came after forecasts indicated that a ban on prop bets could substantially impact state revenue associated with sports betting activities. Initial assessments suggested a possible loss ranging from $2.4 million to $2.6 million in the first fiscal year, primarily hindering funds allocated for water infrastructure projects.
With this clause lifted, lawmakers now anticipate the fiscal impact to decrease to approximately $800,000.
The Colorado Division of Gaming noted that total sports betting activity in the state surpassed $6.5 billion in wagers for 2025, showcasing the market’s expansive nature.
Senator Matt Ball, one of the bill’s proponents, remarked that the amendment was vital to minimize financial risks and uphold the bill’s overall design. He also mentioned external pressures during the legislative discussions, stating to Axios Denver: “The gaming sector has substantial financial resources, and we are significantly outspent, which certainly influences bills, including this one.”
Concerns Regarding Market Access and Industry Impact
Industry operators warned that eliminating prop bets could hinder customer acquisition and retention, as these bets are particularly favored in parlay wagering.
Lawmaker discussions also touched on the possibility that restricting these wagers could push players towards overseas platforms that continue to provide such services without equivalent consumer protections.
A prop bet lets bettors wager on specific elements of a game, such as individual player performance or particular results during live play. These bets are frequently placed rapidly, resulting in heightened engagement.
Continuing Discourse on Responsible Gaming
Although the restriction on prop bets has been revoked, Senate Bill 131 maintains provisions focused on mitigating gambling-related risks. Among these is a ban on credit card usage for sports wagering transactions.
Lawmakers estimate that this provision will account for the remaining $800,000 of projected revenue loss. This restriction aims to curb gambling with borrowed funds and standardize existing practices, as several businesses in Colorado already refrain from accepting credit cards.
Research referenced during legislative debates has associated micro-betting formats, such as prop bets, with compulsive gambling tendencies. Concerns regarding potential athlete manipulation have also arisen, leading the National Collegiate Athletic Association to advocate for the elimination of such bets earlier this year.
Despite these worries, Ball chose to lift the ban with minimal debate to protect other vital components of the bill, including guidelines on promotional bonuses.
The focus now shifts to how the remaining provisions will develop as the bill progresses. Lawmakers and industry representatives are expected to engage in continued discussions, particularly regarding advertising restrictions and other consumer protection measures as the legislation unfolds.