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Colorado Introduces Credit Card Ban and Deposit Limits for Sports Betting

Colorado Enacts Credit Card Ban and Deposit Limits for Sports Betting – New Law Expands Consumer Protection Rules

Key Takeaways

• Colorado will ban credit card deposits for sports betting starting August 12 under SB 26-131.
• Players will be limited to six deposits within a 24-hour period.
• Mobile push notifications and text messages that solicit bets will be prohibited.
• The Colorado Gaming Control Commission can impose penalties of up to $25,000 per violation.
• Colorado is the first US state to combine a daily deposit limit with a ban on betting push notifications.

New Restrictions Take Effect in August

Colorado Governor Jared Polis has signed Senate Bill 26-131 into law, introducing new restrictions on online sports betting in the state. The measures will take effect on Wednesday, August 12.

The legislation prohibits sportsbooks from accepting credit card deposits. It also limits each customer to six deposits within a 24-hour period. In addition, operators will no longer be allowed to send mobile push notifications or text messages that directly solicit bets.

The Colorado Gaming Control Commission is authorized to enforce the new rules. Under the law, the regulator can impose a maximum penalty of $25,000 for violations.

According to the bill’s sponsors, these changes represent the first major update to Colorado’s sports betting framework since voters approved online wagering in 2019.

First State to Combine Deposit Limits and Marketing Ban

Colorado is the first US state to adopt both a statutory ban on marketing push notifications to betting customers and a daily deposit limit.

The law is narrower than earlier drafts. Initial proposals included a ban on proposition bets and restrictions on betting between 8 a.m. and 10 p.m., as well as during live sports broadcasts. Those provisions were removed during the legislative process after concerns were raised about implementation challenges and potential economic impact.

Proposition bets, often referred to as prop bets, are wagers linked to individual player statistics such as rebounds or touchdowns. These bet types have become more prominent in recent years, alongside multi-leg parlays. Sportsbooks including DraftKings and FanDuel have reported increased revenues as these products gained popularity, although such wagers are generally harder for bettors to win.

A fiscal estimate found that a full ban on prop bets would have reduced Colorado’s sports betting tax revenue by $2.4 million in the 2026-27 fiscal year, $2.6 million in 2027-28, and $2.7 million in 2028-29. After the Senate Finance Committee removed the prop bet ban from the bill, the expected revenue decrease was reduced to about $800,000 in 2026-27.

Market Size and Tax Revenue Context

Colorado’s sports betting market has grown significantly since legalization. Last year, more than $6.5 billion in wagers were placed in the state across a wide range of events, from table tennis to the National Football League.

The state collected almost $44 million in sports betting tax revenue during that period. A significant portion of these funds is directed toward water conservation projects.

The scale of wagering activity has drawn increased attention from policymakers and public health advocates. Concerns have focused on the accessibility of betting through mobile apps, the volume of advertising, and the potential financial and social consequences of problem gambling.

Research and Public Health Concerns Shape Debate

A working paper by researchers from the University of California, Los Angeles and the University of Southern California found higher rates of financial problems in states with online sports gambling. According to the study, personal bankruptcy filings were up to 30 percent more likely in states where online sports betting is available.

State Senator Matt Ball, a Democrat from Denver and sponsor of the bill, stated after the signing that technological developments have transformed the industry since legalization in 2019. He said that online platforms and algorithms increasingly target vulnerable users.

Advocacy groups also supported the changes. Joshua Ewing, Executive Director of Healthier Colorado, said the bill followed months of advocacy from residents seeking stronger public health safeguards in an industry generating billions of dollars in revenue.

The new law also requires the state to collect data and publish reports in the coming years to assess the impact of the sports betting industry on consumers. This reporting requirement is intended to provide a factual basis for future policy decisions.

Operational Impact for Sportsbooks and Users

For licensed operators in Colorado, the changes will require adjustments to payment processing systems and marketing practices. The credit card ban removes one funding method, while the six-deposit limit imposes a daily operational cap on customer transactions.

The prohibition on push notifications and text messages that solicit bets directly affects mobile engagement strategies. Operators will need to ensure that promotional communications comply with the new restrictions to avoid potential fines.

For users, the law changes how accounts can be funded and how frequently deposits can be made within a single day. It also reduces direct promotional prompts through mobile devices.

Our Assessment

Colorado’s new law introduces binding limits on payment methods, deposit frequency, and direct mobile marketing in the state’s sports betting market. While earlier proposals to ban prop bets and restrict betting hours were removed, the enacted measures represent the first major revision of the framework established after the 2019 legalization. With more than $6.5 billion in annual wagers and nearly $44 million in tax revenue, the state is combining continued market operation with additional consumer protection rules and enhanced regulatory oversight.