Colorado Cracks Down on Sports Betting: What You Need to Know

Colorado is looking to put the brakes on the rapid growth of sports betting with new proposed regulations. Lawmakers are considering measures to curb potential gambling harm, re-examine advertising practices, and get a better handle on online wagering.

Protecting Players in a Growing Market

Two key bills are making their way through the legislature. One aims to put stricter limits on how sportsbooks operate, their promotions, and how you can deposit money. The other bill is designed to formally include sports betting in Colorado’s existing self-exclusion laws, giving players more control over their gambling.

Key Changes Proposed

The main proposal, Senate Bill 26-131, has already cleared the Colorado Senate and is heading to the House. Supporters of the bill argue that it’s about adding necessary safeguards to a market that has expanded incredibly fast. One of the more significant changes is a restriction on how many times you can deposit money within a 24-hour period. Initially, the idea was to limit it to five deposits, but the approved version has been adjusted to six. This is meant to prevent impulsive betting. Push notifications and text messages from sportsbooks designed to solicit bets or deposits are also on the chopping block. So, you might see fewer tempting alerts popping up on your phone.

Advertising Overhaul

Advertising is also getting a closer look. Promotions offering enhanced payouts or detailed instructions on placing bets could be prohibited. Furthermore, TV ads might be barred from airing during prime time or while a live sporting event is on. Sportsbooks will also need to adhere to new rules regarding the marketing companies they hire.

Data and Transparency

The Colorado Division of Gaming will be collecting annual data from sportsbooks. This information will be compiled into a public report every three years, starting in 2029, with measures in place to protect individual privacy. Advertising targeted at individuals under 21 will be prohibited across all platforms, including broadcast, digital, and print.

Proposition Bets on the Sidelines

An earlier version of the bill considered banning proposition bets, which are wagers on specific events within a game, like an individual player’s performance. However, this ban was removed due to concerns about potential lost tax revenue and opposition from the industry.

Deposit Restrictions and Fair Play

A significant change still included in the legislation is a prohibition on using credit cards for sports betting deposits. Violating this could result in penalties. The legislation also aims to prevent sportsbooks from unfairly reducing bet sizes or deposit frequencies for players who consistently win, unless there are signs of suspicious activity or problem gambling.

Strengthening Self-Exclusion

Another bill, Senate Bill 26-163, would officially embed Colorado’s sports betting self-exclusion program into state law. While this program already exists through regulations, codifying it provides an extra layer of security. This bill also involves shifting some regulatory responsibilities related to racing and gaming. Colorado is also increasing funding for responsible gaming initiatives, allocating substantial grants to support prevention, awareness, treatment, and research. These legislative moves come as sports betting continues to be a growing source of public revenue for Colorado, with billions wagered annually.