Colorado Approves Sports Betting Reform Bill: What Changes?
Posted on: May 14, 2026, 04:26h.
Last updated on: May 14, 2026, 04:26h.
- Colorado’s sports betting market is poised for change
- Proposed regulations include six deposits per day
- Sports betting ads during the day and evening could also end
Lawmakers in Colorado have raised a bill to overhaul the state’s online sports betting industry. Should Gov. Jared Polis (D) sign Senate Bill 131, a series of new rules would be implemented in the market.
Introduced by Sens. Matt Ball (D-Denver) and Byron Pelton (R-Logan), SB131 passed the state Senate on April 28 with a 20-14-1 vote. The House of Representatives backed an amended version of the sports betting bill with a 50-13-2 vote on May 9. The Senate approved the revisions 20-15 on Tuesday.
The measure stands to overhaul online sports betting in Colorado.
The most pro-consumer condition is that successful bettors, or sharps, would no longer be allowed to be limited by sportsbooks. While oddsmakers could continue to impose max bets on certain lines, they wouldn’t be able to do so on a per-customer basis.
Sportsbook Wins and Losses
Colorado sportsbooks pushed back on SB131, saying it would have a negative impact on the legal sports betting environment, possibly pushing some bettors to offshore sportsbooks, local bookies, or prediction markets.
The sportsbooks’ lobbying resulted in some success. An earlier version of SB131 sought to ban player proposition bets, wagers that are dependent on a player’s performance or a certain element within the game. Props keep bettors entertained and engaged throughout a game.
In Colorado, prop bets regularly account for the most bets in terms of handle. Allowing props to remain was recommended by the Appropriations Committee after it was told the exclusion of prop bets would result in an annual state tax loss of more than $1.6 million.
Sportsbooks also got another daily deposit for bettors during the lobbying. SB131 proposed limiting sports bettors to five account deposits per 24 hours. The final version was raised to six deposits.
“Deposit limits are widely recognized as an effective harm-reduction tool designed to introduce friction and slow loss-chasing behavior, and reduce extreme outcomes, particularly among high-intensity users,” Ball said, as reported by The Denver Post.
Not everything went the industry’s way. Despite pushback, SB131 maintained that credit cards no longer be allowed for deposits, and sportsbooks cannot use push notifications on their apps or text messages to entice bets and/or deposits.
Oddsmakers, should Polis sign, would also be prohibited from advertising during the hours of 8 am to 10 pm, and during all live sports broadcasts.
Consumer Protections
Colorado’s sports betting industry has grown exponentially, with oddsmakers seeing significant activity over the past five years.
On Wednesday, the Colorado Department of Revenue reported that taxes for the current fiscal year to date are up 36% to $36.4 million. March tax revenue surged 103% to $4.4 million.
Colorado’s strong March numbers underscore the sustained growth and public interest in legal sports betting,” said Christopher Schroder, director of the Division of Gaming.
“As the industry continues to expand, we continue to prioritize consumer protection. We strongly encourage all bettors to utilize the responsible gaming tools available, including setting limits on time and wagers, and to visit BetSmart.Colorado.gov for resources and information on how to play responsibly,” Schroder added.
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