Colorado lawmakers are pushing ahead with a broad overhaul of the state’s sports betting industry, approving a measure that would tighten advertising standards, limit how often gamblers can deposit money, and block the use of credit cards for wagers.
Senate Bill 131 cleared House third reading on Friday (May 9) in a 50-13 vote, with two lawmakers absent, according to the legislature’s latest roll call. Part of the proposal already passed the Senate and now moves closer to becoming law.
Sens. Matt Ball and Byron Pelton are sponsoring the legislation alongside several Democratic lawmakers. In the House, Reps. Steven Woodrow and Dan Woog are leading the effort.
Lawmakers said the proposal is meant to address the explosive growth of online gambling since Colorado legalized sports betting in 2019. The bill’s legislative declaration states that more than $6.3 billion in online sports wagers were placed statewide in 2025, an increase of more than 130% compared with 2020 activity.
State officials also pointed to rising concerns about addiction and the impact betting advertisements may have on younger audiences. The legislation notes that “calls and texts to the problem-gambling helpline increased by about 45% in the year after legalization of online sports betting.” Lawmakers also wrote that “more than half of 18- to 22-year-olds have engaged in some form of sports betting.”
Colorado proposes new restrictions on sports betting operators and advertising
Under the proposal, sportsbook operators could not accept more than six separate deposits from the same person during a continuous 24-hour gaming period. Companies would also be banned from sending text messages or push notifications encouraging users in Colorado to place wagers or add funds to accounts.
The bill would also prohibit sportsbooks from accepting deposits funded by credit cards, including payments routed indirectly through linked accounts. Operators that violate the rules could face penalties reaching $25,000.
Advertising restrictions are another major piece of the legislation. Sports betting companies and marketing affiliates would be prohibited from targeting people younger than 21 or advertising in media where most of the expected audience is underage. Lawmakers wrote that children and adolescents are “frequently exposed to sports betting advertising and are influenced by its messages.”
The proposal would also ban enhanced payout promotions and instructions explaining how to place wagers in advertisements. Betting ads would not be allowed between 8 a.m. and 10 p.m. or during live sports broadcasts.
The measure arrives as Colorado continues debating broader gambling policy changes. Lawmakers have also considered House Bill 1311, which would end tax deductions tied to promotional free bets offered by sportsbooks. Separately, a federal judge dismissed a lawsuit brought by the Southern Ute and Ute Mountain Ute tribes challenging aspects of Colorado’s sports betting system.
If approved, Senate Bill 131 would take effect in August 2026 unless voters challenge it through a referendum petition.
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