A bipartisan group of Colorado lawmakers labeled the sports betting industry’s practices “abusive” in a proposal to establish consumer protections.
They introduced the legislation, SB26-131, in late February. The sponsors are Sen. Matt Ball (D), Sen. Byron Pelton (R), Rep. Steven Woodrow (D), and Rep. Dan Woog (R).
Colorado voters narrowly approved sports betting in 2019. Critics say the industry remains largely unregulated and causes widespread harm.
The 2026 legislation is scheduled for a hearing on March 10 in the Senate Finance Committee.
What’s In Colorado’s 2026 Sports Betting Bill
- Sportsbooks could not accept more than five deposits from a user in a 24-hour period.
- No push notifications or texts soliciting bets or deposits.
- No limiting or restricting users based on their winnings.
- Ads could not feature enhanced payout promotions or betting instructions.
- Broadcast ads couldn’t air from 8 a.m. to 10 p.m. or during live events.
- No affiliate marketing deals paid on sign-ups or bets.
- Colorado must receive more data and metrics on betting activity.
- No player prop bets allowed.
- No credit cards for funding a sports betting account.
- Colorado may issues fines of up to $25,000 for violations.
Some of the provisions mirror components of the federal SAFE Bet Act.
Notably, the Colorado bill doesn’t address artificial intelligence.
Colorado Sports Betting Grows
In February, the Division of Gaming reported $3.37 billion in wagers for the fiscal year to date, up nearly 7% from the previous year. Coloradans wagered $40.7 million on the Super Bowl, losing $11.4 million.
Tax revenue generated by sports betting largely goes to state water projects. Some goes to problem gambling grants.
Colorado is one of over 30 states with legal online sports betting.
Nationwide, Americans bet nearly $167 billion through state-sanctioned sportsbooks in 2025, up 11% from 2024, according to the American Gaming Association.
Addiction Risks High
Despite responsible gambling messages, problem and at-risk gambling among online sports bettors is widespread.
Half of online bettors are addicted or at-risk, such as by chasing losses, according to surveys.
In October, the Pew Research Center reported that 43% of U.S. adults view sports betting as “bad for society.” Nearly half of men under 30, the sports betting industry’s core demographic, held a negative view of legal sports betting.
Odds for Colorado’s 2026 Sports Betting Bill
The legislation’s chances are unclear, but a public health approach to betting is gaining momentum. States such as New York, New Jersey, and Maryland have also seen robust proposals to rein in the legal industry.
To date, no state has meaningfully strengthened consumer protections in its online sports betting market. Well-funded opponents of better regulation claim more rules would benefit illegal online sportsbooks.
Colorado’s bill faces an uphill battle, as it is expected to encounter opposition from the influential betting industry and sports leagues with franchises in the state.
However, industry public opinion is declining, and Colorado’s bill has bipartisan support. It’s one to watch this year.
Image by Abhay Bharadwaj from Pixabay