Colorado has approved new sports betting limits that target how players fund accounts and how sportsbooks contact customers through mobile apps.
Good to Know
Gov. Jared Polis signed SB 26-131 into law after lawmakers stripped out broader betting restrictions. The final version keeps three core rules: no credit card deposits, a six-deposit daily cap and no mobile push notifications or text messages that solicit bets. Colorado Politics reported that the bill also gives the Colorado Gaming Control Commission authority to enforce penalties.
Colorado now becomes the first state to legalize both a daily deposit cap and a ban on sportsbook push alerts that ask users to bet. That point matters for the wider US sports betting market because most responsible gambling laws focus on age checks, self-exclusion, ad rules or funding tools, not direct limits on app re-engagement.
Earlier drafts went further. Lawmakers considered a ban on prop bets and limits on sportsbook ads during live games and between 8 a.m. and 10 p.m. The prop bet piece was removed after revenue concerns and industry opposition. A fiscal estimate said a full prop ban could have cut state sports betting tax revenue by $2.4 million in 2026-27, $2.6 million in 2027-28 and $2.7 million in 2028-29. Axios reported that Colorado took more than $6.5 billion in sports wagers in 2025.
Revenue remains a key part of the Colorado debate. Sports betting tax money helps fund water projects, a link created when voters approved sports wagering through Proposition DD in 2019. The Colorado Division of Gaming said sports betting proceeds have raised more than $100 million for water conservation since launch.
Sen. Matt Ball, D-Denver, framed the law as a public health measure after years of growth in online betting.
“Pernicious algorithms and advertisements are increasingly preying on vulnerable online sports bettors,” Ball said.
He added:
“Since Colorado’s legalization of online sports betting in 2019, technology has rapidly transformed the industry, catching more and more people in the cycle of devastating gambling addiction.”
Healthier Colorado backed the law. Joshua Ewing, executive director of the group, said:
“Yesterday’s bill signing is the result of months of advocacy from Coloradans who refused to accept that an industry generating billions in revenue could continue operating without basic public health guardrails.”
Keep in mind that Colorado did not ban player props, same-game parlays or sportsbook advertising outright. Instead, the law targets credit-driven betting, repeated deposits and app prompts that bring users back to betting screens.