A Colorado law restricting credit card funding and capping daily deposits for sports bettors takes effect Wednesday, months after Gov. Jared Polis signed the bill June 2.
SB 131, sponsored by Sen. Matt Ball, D-Denver, also bans push notifications soliciting bets and adds new protections against marketing to minors as the state’s online betting market continues to break revenue records.
“Pernicious algorithms and advertisements are increasingly preying on vulnerable online sports bettors,” Ball said in a statement. ” … As online sports betting continues its rise in popularity, we must ensure there are reasonable protections in place to help prevent addiction, protect underage Coloradans, and uphold the integrity of the game and its athletes.”
The bill passed on the final day of the session in May, after lawmakers stripped out a proposed ban on prop bets to protect tax revenue.
Colorado sports betting changes
SB 131 makes the following changes to Colorado sports betting starting Aug. 12:
- Ban on credit card funding for betting accounts, direct or indirect. Many sportsbooks have already taken it upon themselves to stop taking credit deposits.
- Six deposits allowed per rolling 24-hour period.
- Ban on mobile push notifications soliciting bets or deposits.
- No advertising where a majority of the audience is reasonably expected to be under 21.
The law will also require sportsbooks to report certain wagering information to both the state and the relevant sports governing body.
To better understand the impacts of sports betting, the bill is requiring operators to report transactional data and certain metrics from the previous calendar year on Feb. 1. The first report is due in 2028.
Every three years, starting on Jan. 1, 2029, the Division will publish a public report based on the findings.
Preserving tax dollars
Colorado voters approved Proposition DD in 2019, legalizing sports betting in the state and sending the majority of tax funds to the Colorado Water Trust. The bill requires each annual transfer to reach at least the previous year’s contribution.
The market has grown rapidly since as more than $6.3 billion was wagered online in 2025, a 130% increase from 2020, according to the state’s Division of Gaming.
The bill’s initial fiscal note found prop bets account for 25% of wagers, and Ball estimated a ban would have cost the state $1.6 million in revenue, or roughly 2.5% of projected tax revenue, if included in the bill.
That is a considerably lower impact than assumed in Louisiana, where a fiscal note suggested 40% of the state’s betting revenue comes from props.
