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Colorado’s sports betting industry is getting a significant regulatory overhaul.
Gov. Jared Polis signed Senate Bill 26-131 into law on June 1, 2026, introducing the most sweeping changes to the state’s sports betting market since voters legalized it in 2019. In the five years since legalization, calls to the state’s problem gambling hotline rose 45% in the first year alone, and nearly three-quarters of Coloradans say legal sports betting has worsened problem gambling in the state.
“After months of work alongside recovery advocates, health care professionals, and families across Colorado, SB 26-131 is now law,” said co-sponsor Sen. Matt Ball, D-Denver.
“This law puts guardrails on an industry that has ballooned in Colorado to more than $6 billion in annual wagers in just a few years. That growth has come at a real cost — to families’ financial security, to kids’ well-being, and to the integrity of the games we love.”
In a report by The Gazette, Joshua Ewing, executive director of Healthier Colorado, called the legislation “the most comprehensive set of online sports betting protections in the country.”
Deposit limits, credit card ban take effect Aug. 12
The law limits customers to six deposits within 24 hours. And, it bans the use of credit cards to fund betting accounts — focusing on creating friction that interrupts patterns associated with problem gambling rather than capping deposit amounts outright. Debit cards and other approved payment methods remain permitted.
For casual bettors who load accounts once before a weekend slate of games, the changes may go unnoticed. For those who repeatedly reload after losses or gamble on borrowed money, the new rules introduce mandatory speed bumps.
Push notifications and targeted marketing restricted
Colorado is now the first state to prohibit operators from sending push notifications or text messages soliciting bets or deposits. The law also bars operators from targeting anyone under 21 and restricts promotional language, banning terms such as “bonus bet” and “no sweat” in marketing materials.
Sportsbook operators warn of unregulated market risk
Major operators, including FanDuel and DraftKings, argued the restrictions would drive bettors to unregulated markets and reduce state revenue for water conservation projects — the destination for more than 90% of sports betting tax revenue. Stanton Dodge, chief legal officer at DraftKings, warned lawmakers: “At a time when Colorado faces an $850 million structural budget deficit and no replacement revenue source, we do not believe now is the time to divert revenue to illegal, unregulated markets.”
Prop bet ban and ad blackouts removed from bill
The version Polis signed is considerably narrower than what was originally proposed.
An earlier draft would have banned proposition bets entirely, eliminating player props on in-game events such as passing yards or points scored. DraftKings warned that prop bets account for 30% to 45% of operator revenue, and that banning them could cut state tax collections by as much as 50%.
That provision was removed before final passage, as was a proposed advertising blackout from 8 a.m. to 10 p.m. A rule that would have prevented sportsbooks from restricting accounts of winning bettors was also dropped, meaning sportsbooks can still limit successful accounts at their discretion.
What this means for Colorado sports bettors
For casual bettors, daily life will look much the same — same platforms, same betting menus. Those who frequently reload accounts, depend on credit cards, or respond to promotional nudges will likely notice a more friction-filled experience come Aug. 12.
The bill passed the Senate 20-14 and the House 50-13, and Colorado’s approach is being watched closely by other states weighing similar responsible gambling legislation.
