A bill to stop Colorado sportsbooks from limiting bettors has advanced to the Senate floor, though lawmakers removed a component that banned prop betting.
The Senate Appropriations Committee advanced Senate Bill 131 with a 4-3 vote Tuesday after the ban on prop bets was removed by a 5-2 vote. The legislation is scheduled for a second reading in the Senate on Thursday.
SB 131 is a broad Colorado sports betting reform bill that contains language to prevent sportsbooks from limiting sharp bettors. It also institutes a data collection requirement, daily deposit limits and restrictions on advertising and push notifications.
The bill would also need to pass the House before the legislature adjourns May 13.
Colorado keeping prop betting reduces ‘impact’
Lawmakers removed the prop bet ban from SB 131 at least in part because the state is facing a significant budget deficit. Most sports betting revenue in Colorado goes toward water projects in the state and lawmakers were concerned cutting that money might shift general fund dollars to those efforts, according to Colorado Public Radio.
Sen. Matt Ball, a SB 131 sponsor, said the amendment was friendly. He told the committee removing the prop bet ban would cut the sports betting revenue loss from the bill from $2.4 million to $800,000.
“It does greatly reduce the fiscal impact,” Ball told the committee.
The $800,000 loss is from a component in the bill that bans the use of credit cards. Many of the sportsbooks in the state already restrict the use of credit card funds.
Did forecasts undersell impact from Colorado prop betting?
The fiscal note for SB 131 assumed 25% of all bets are props and that 10% of those bettors would leave the market. That $1.6 million Ball says is saved by not removing prop bets accounts for just 2.5% of total projected sports betting tax revenue for fiscal 2026-27.
Louisiana, however, forecasted a much larger impact on its tax revenue if a bill that banned prop betting were to pass this year.
Had a ban on props been in place at the beginning of Louisiana’s fiscal 2026 on July 1, 2025, the state would have seen a decrease of $28.9 million, or 39.2%, in tax revenue.
Proposed Colorado sports betting reform
During the first two years of the bill, the state would spend $1.25 million to collect data from sportsbooks. The state would then publish a report with the data.
The bill also:
- Limits sportsbook advertising during daytime and live-game broadcasts.
- Bans push notifications and texts to solicit bets.
- Caps user deposits to five during a 24-hour period.
- Ensures water plan funding does not fall below prior years.
