- A sports betting protections bill in Colorado that would prohibit sportsbooks from limiting winning bettors, ban credit card deposits, and many other components.
- The bill initially planned to ban prop betting in Colorado, but a Tuesday amendment removed that portion of the bill.
- Colorado’s legislative session ends on May 13, so it must advance through both chambers before then.
DENVER – A sports betting protection bill would change the way that operators can advertise, limit winning bettors, and accept different deposit methods in Colorado. They would become the first state with legal sports betting to welcome professional bettors and prohibit sportsbooks from limiting winning bettors, unless the betting activity signals a gambling disorder or suspicious wagering activity.
Senate Bill 26-131, titled Sports Betting Protections, will receive a second reading on Thursday in the Senate chamber. The bill aims to protect users from abusive practices in sports betting by limiting sports betting advertising, prohibiting operators from soliciting bets with mobile notifications, and implementing responsible gambling measures.
A complete list of proposed requirements and prohibitions includes:
- Operators from accepting five separate deposits within a 24-hour period
- Operators from limiting bettors’ wager amounts because they “obtain a financial benefit”
- Operators from accepting deposits via credit card
- Operators from sending push notifications that solicit bets or deposits
- Broadcasting or advertising sports betting operations between 8 a.m. and 10 p.m.
- Broadcasting or advertising during a live sporting event
- Sports betting operators from compensating a third-party for advertising services
- Allows the Colorado Limited Gaming Control Commission to fine operators up to $25,000 per violation
Proposed Prop Betting Ban Amended Out
The Colorado sports betting protection bill also initially included a ban of all propositional wagers in the state, but that portion of the bill was removed on Tuesday. Lawmakers estimated that prop betting makes up about 25% of total sports betting wagers in Colorado, which is a significant chunk to remove. Estimates say a prop ban would’ve led to a $23 million tax hit, but Tuesday’s amendment removed all prop betting language from the bill.
