Colorado Sports Betting Industry Set for Major Overhaul, Including Ban on Books Limiting Sharps

Posted on: April 23, 2026, 03:10h. 

Last updated on: April 23, 2026, 03:10h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • Colorado lawmakers are considering reforming the state’s sports betting rules
  • Proposed legislation would prohibit a sportsbook from limiting sharp bettors
  • Prop bets would remain after an amendment was passed

Legislation in Colorado that seeks to overhaul the state’s sports betting market in the bettor’s favor is now with the full state Senate.

Colorado sports betting legislation
A hiker raises his arms after reaching the top of the mountain in Rocky Mountain National Park in Colorado. Big changes could be coming to the Colorado sports betting market. (Image: Shutterstock)

Senate Bill 131, introduced by Sens. Matt Ball (D-Denver) and Byron Pelton (R-Logan), seeks to halt Colorado sportsbooks from engaging in what the lawmakers believe to be “abusive practices.” The legislation, cosponsored in the Colorado House of Representatives by Reps. Steven Woodrow (D-Denver) and Dan Woog (R-Boulder), passed the Senate Appropriations Committee on a 5-2 vote.

The “no” votes came from Vice Chair Jeff Bridges (D-Denver) and Sen. Scott Bright (R-Adams). Bright sat in for Pelton, who normally serves on the Appropriations Committee.

SB131 was referred out of the Senate Finance Committee in March. It’s now been directed to the Senate floor, where it was read this morning without fielding any proposed amendments.

Prop Bets Remain

During Tuesday’s Appropriations Committee review of SB131, an amendment was raised to retain proposition bets. On revenue concerns, the committee endorsed Amendment Number L7.

By keeping prop bets, or bets involving the outcome of a player’s performance or a certain element within the game, Colorado’s 2026-27 fiscal impact of SB131 is expected to drop from a loss of $2.42 million to $800,000. The state will still incur a tax revenue loss due to SB131 because it seeks to limit sportsbooks from accepting more than five account deposits from an individual per 24 hours.

A key element of SB131 in the bettor’s favor is that oddsmakers would no longer be allowed to limit sharps who win more than others. The measure proposes prohibiting sportsbooks from limiting a bet “unless the betting activities constitute a suspicious betting activity or are indicative of a gambling disorder.” While a book could still put a maximum on a line, it could not adjust the cap on a per-account basis.

Another key to SB131 is that it would outlaw sportsbooks from sending mobile device push notifications and text messages that solicit bets and/or deposits. Oddsmakers would additionally need to refrain from offering “enhanced payout promotions or information on how to place a sports bet” in their advertising materials.

Sports Betting Ad Ban 

For those who don’t bet on sports, many will be happy to learn that the Colorado sports betting bill would stop the incessant advertising.

Broadcast television within the state would be prohibited from accepting advertising from a sports betting operation from 8 am until 10 pm daily. The sports betting ad ban would additionally extend to all live sports broadcasts, regardless of time.

In 2023, Colorado sportsbooks took more than $6.3 billion in online bets, a 130% increase from 2020. Colorado places a 10% tax on sportsbooks’ gross revenue, or the amount kept by the oddsmakers after paying out winning wagers.