Polis Signs Colorado Sports Betting Laws Imposing New Restrictions
Colorado sports betting laws will impose significant new restrictions on the industry following Governor Jared Polis’s signing of Senate Bill 131. The legislation introduces multiple regulatory changes, such as limiting customers to six deposits within a 24-hour period and banning the use of credit cards to fund betting accounts. Additionally, the measure prohibits sports betting companies from targeting anyone under 21 and restricts push notifications or text messages that solicit bets or deposits. Senate Bill 131, sponsored by Sens. Matt Ball and Byron Pelton along with Reps. Steven Woodrow and Dan Woog.
Governor Polis Signs Senate Bill 131 Into Law
Governor Jared Polis signed Senate Bill 131 into law on June 1, 2026, marking a significant regulatory milestone for Colorado sports betting laws. The bipartisan legislation received sponsorship from Sens. Matt Ball, a Democrat from Denver, and Byron Pelton, a Republican from Sterling, along with House Representatives Steven Woodrow and Dan Woog.
The Senate approved the measure on a 20-14 vote before sending it to the House for consideration. Ball emphasized the urgent need for regulatory action, stating that online sports betting has placed casinos in the pocket of nearly every Coloradan with little protections built in for those addicted to gambling or young people. The industry expanded dramatically from USD 1 billion to more than USD 6 billion wagered in just a few years.
Pelton noted that families across rural and urban Colorado were seeing the very real harm that unchecked online sports betting can cause. Research has suggested that the legalization of online sports betting has led to lower credit scores and higher rates of bankruptcies. Calls to the state’s gambling addiction hotline jumped nearly 50% since legalization.
Colorado will join nine other states that have banned the use of credit cards for deposits for sports betting.
Key Restrictions Imposed by Colorado Sports Betting Laws
Senate Bill 131 establishes multiple restrictions on Colorado sports betting laws that target deposit methods, marketing practices, and promotional communications. The legislation prohibits sports betting operators from accepting more than six separate deposits from an individual within a 24-hour period. Colorado became the first state to legalize both a ban on marketing push notifications to betting customers and a daily deposit limit.
The credit card ban prevents bettors from funding accounts with borrowed money, addressing concerns about financial harm and debt accumulation. Sports betting operators will face class 2 misdemeanor charges for accepting credit card deposits. This restriction aligns with responsible gaming standards, as Problem Gambling Coalition of Colorado executive director Jamie Glick noted that gambling on credit represents one of the largest risk factors for individuals.
Additionally, the law prohibits sports betting operations from initiating or sending mobile device push notifications or text messages to account holders that solicit bets or deposits. These promotional restrictions aim to reduce impulsive betting behavior triggered by constant alerts.
Marketing limitations under Colorado sports betting laws prevent companies from targeting persons under 21 years old or advertising on media where the majority of the demographic audience is reasonably expected to be under 21. The new rules take effect Wednesday, August 12.
What Changed During the Legislative Process
The most significant change to Senate Bill 131 occurred when the Senate Appropriations Committee removed the proposed ban on prop bets. As originally introduced, the legislation would have prohibited wagers on individual athletes’ performances, including mid-game betting on events such as whether a baseball pitch would be a ball or strike.
Critics expressed concerns about prop bets offering higher payouts that encourage problem gambling and potentially undermining sports integrity. Two Major League Baseball pitchers were indicted by the Department of Justice last year for a bet-rigging scheme involving prop bets.
Despite these concerns, mounting pressure from the gambling industry and a state budget crunch led bill sponsors to remove the prop bet prohibition. The Senate Appropriations Committee eliminated this section to reduce the fiscal impact, Ball explained. Tax revenue from sports gambling funds water projects across Colorado.
Nonpartisan state fiscal analysts revised their projections following the amendment. The bill would now decrease Proposition DD tax revenue by just over USD 800,000, down from approximately USD 2.4 million in the original estimate. Ball described prop bets as “slot machines in your pocket” and expressed concern about their addictive nature. He agreed the bill had a better chance of passing without the prop bet prohibition but vowed to revive the legislative debate in future sessions.
