Editor’s note: An earlier version of this story included details concerning an advertising ban that were stripped from the bill before the Senate sent it to the House.
A bill that limits daily deposits and push notifications in the Colorado sports betting market survived two third reading votes this week.
The Senate passed Senate Bill 131 20-14 Tuesday afternoon on a reconsideration vote. Its first third reading vote was 21-13.
The Colorado sports betting bill now heads to the House Finance Committee. The Colorado Legislature adjourns May 13.
Tightening Colorado sports betting
Sen. Matt Ball’s legislation changes several components of the Colorado sports betting market:
- Bans push notifications to solicit bets.
- Prohibits credit card funding of accounts. Bet365, BetMGM, Caesars, DraftKings and FanDuel no longer accept credit cards anywhere. Fanatics never accepted credit card deposits.
- Caps deposits at six during a rolling 24-hour period.
- Ensures taxes paid to water plan funding does not fall below prior year levels.
Sportsbooks would also need to supply the state with transaction data and other metrics. The state will then publish a report with the data. That would cost the state $1.25 million.
Prop bet ban stripped
The NCAA has repeatedly called for states to ban prop bets. Several states have adopted the restriction since NCAA President Charlie Baker first called for the ban.
During a committee meeting last week, lawmakers removed language in the bill that would have banned prop bets. Lawmakers were concerned the ban would have greatly reduced tax revenue from sports betting and further strained an already tight budget. Language that limited when sports betting ads could air was pulled on the Senate floor.
Most tax dollars from sports betting helps fund water projects in the state. Cutting prop bets would likely require additionally money from the general fund, according to Colorado Public Radio.
Tax loss in Colorado
Ball said the removal of the ban drops the tax loss from $2.4 million to $800,000. The $800,000 loss projection is due to the credit card funding ban.
Colorado sports betting has generated $143.2 million in tax revenue since it launched in May 2020.
The fiscal note, however, likely undersold the potential tax loss from banning prop bets. Ball’s estimate was 2.5% of projected sports betting tax revenue for 2026-27. In a similar Louisiana forecast, projections put losses form a prop bet ban at $28.9 million, or approximately 39.2%.
