Colorado tightens sports betting rules with dual ban
Table of contents
- Colorado Gov. Jared Polis signed SB26-131 into law on 2 June, banning credit card deposits and capping bettors at 6 deposits per gaming day.
- The law bans operators from sending push notifications and text messages soliciting bets or deposits, among the strictest such restrictions in the US.
- Violations of the credit card prohibition carry fines of up to $25,000, enforced by the Colorado Limited Gaming Control Commission, with all provisions taking effect on 12 August.
Colorado has enacted some of the toughest sports betting consumer protections in the United States, with Gov. Jared Polis signing SB26-131 into law on 2 June.
The legislation bans credit card deposits, caps daily transactions, and prohibits operators from sending push notifications soliciting bets or deposits.
What the law says
SB26-131 bars licensed internet sports betting operators from accepting credit card deposits, directly or indirectly. Bettors are also limited to six deposits within a single gaming day.
A violation of the credit card prohibition constitutes a Class 2 misdemeanor, and the Colorado Limited Gaming Control Commission may impose fines of up to $25,000 per violation.
Operators are banned from initiating or sending push notifications or text messages to account holders soliciting bets or deposits. The law also prohibits advertising that targets anyone under 21 or that appears on media where the majority of the expected audience is under 21.
Operators must submit annual data to the state’s Division of Gaming; the division will compile the data into a public report every three years, beginning 1 January 2029.
An earlier draft of the bill included a ban on proposition bets, which would have reduced state tax revenue by an estimated $2.4m. That provision was removed before final passage.
A revised fiscal note projects an $800,000 annual revenue decline attributable to the credit card ban.
Sponsors and opposition
The bill was sponsored by Sen. Matt Ball, D-Denver, and Sen. Byron Pelton, R-Sterling, alongside Rep. Steven Woodrow, D-Denver, and Rep. Dan Woog, R-Erie. It passed the Senate on a vote of 20–14 and the House 50–13.
Ball, prime sponsor, said:
“After months of work alongside recovery advocates, health care professionals, and families across Colorado, SB26-131 is now law.
“This law puts guardrails on an industry that has ballooned in Colorado to more than $6 billion in annual wagers in just a few years. That growth has come at a real cost to families’ financial security, to kids’ wellbeing, and to the integrity of the games we love.”
Major operators pushed back. Both FanDuel and DraftKings argued the law would drive bettors to unregulated markets at a time when Colorado faces an $850m structural budget deficit.
The state directs more than 90% of sports betting tax revenue to water conservation projects.
Industry context
Colorado’s credit card ban follows voluntary moves by the two largest US operators. DraftKings stopped accepting credit card deposits in August 2025, and FanDuel followed in March 2026.
bet365 ended US credit card deposits in April 2026, putting all four major sportsbook operators on the same footing ahead of the law’s passage.
The law mirrors elements of the federal SAFE Bet Act, introduced by Rep. Paul Tonko and Sen. Richard Blumenthal, which proposes similar advertising, credit card, and deposit restrictions at the federal level.
Colorado’s sports betting market has grown significantly since launching in 2020, with the state directing the bulk of tax receipts to water conservation.
The 12 August deadline leaves limited time to update payment processing systems and notification workflows. The data-reporting requirement introduces a further layer of regulatory oversight, with state-published figures likely to fuel continued legislative debate on deposit limits and advertising practices across the country.
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