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- Colorado passed a sports betting law capping daily deposits at six, banning credit card funding, and restricting marketing.
- The legislation addresses rising problem-gambling helpline calls in Colorado and mandates annual operator reporting starting in 2028.
Colorado has passed a new sports betting law that adds deposit limits, advertising restrictions and operator reporting requirements, marking one of the country’s most aggressive state responses to gambling-harm concerns.
The changes matter because Colorado has become one of the nation’s largest sports betting markets since online wagering launched in May 2020, with bettors placing nearly $6.45 billion over the last year alone. At the same time, lawmakers and problem-gambling advocates say signs of harm have risen as betting apps became widely available.
State legislators passed Senate Bill 26-131 in May 2026 with support from 71 of 100 lawmakers, according to Westword. The law limits bettors to no more than six deposits in 24 hours, bans push notifications that solicit deposits or bets, bars credit card deposits, and prohibits ads targeting people under 21.
New guardrails for a major betting market
Colorado residents have wagered more than $32.55 billion on sports betting since legalization, according to the state Division of Gaming. Last fiscal year, the market generated a record $47.2 million in tax revenue.
Under Proposition DD, which voters approved in 2019, Colorado taxes sports betting net proceeds at 10%, with nearly all of the money directed to water conservation and protection projects.
But the Westword report said calls and texts to Colorado’s gambling addiction helpline rose 45% from 2020 to 2021, and helpline intakes in 2025 were double the 2021 level, citing the Problem Gambling Coalition of Colorado.
State Sen. Matt Ball, a sponsor of the bill, told Westword: “The public is waking up to what online sports betting has become.”
Reporting rules start in 2028
The law also requires sports betting operators to submit annual transactional data and other metrics to the state beginning in 2028, a provision that could give regulators a clearer picture of betting behavior and market trends.
Westword described Colorado’s new rules as among the first in the nation aimed directly at confronting gambling addiction tied to online sports betting.
The Sports Betting Alliance, whose members include BetMGM, DraftKings, Fanatics, FanDuel and bet365, said most legal users gamble responsibly and noted that some responsible-gaming tools were already in place before the law passed.
Colorado has also increased state funding for gambling services. The state’s annual allocation rose from $130,000 to $2.5 million in 2023, according to the report.
What comes next is implementation. Readers and operators will be watching how Colorado enforces the new deposit and advertising restrictions, and what the required operator data reveals once annual reporting begins in 2028.
Source: As reported by Hannah Metzger.
