Colorado sports betting legislation moves forward with eased restrictions

SB 26-131 now can head to the floor of the state's House of Representatives for consideration. If it passes the House and is signed into law by the Governor's office, sportsbooks would face some notable restrictions moving forward, such as with deposit limits, advertising regulations and methods to protect successful bettors. 

This bill is wide-ranging, covering quite a few different sports betting issues. If enacted, sportsbooks would have to implement deposit caps, restricting the number of deposits a bettor can make on any given day to six. Additionally, sportsbooks would not be allowed to send out push notifications or send SMS messages to bettors that encourage deposits. Sportsbooks would also not be allowed to take deposits from credit cards. 

One interesting element of this bill is that it would help protect bettors who are winning a lot of their wagers. This bill would prevent sportsbook operators from placing any sort of limits on winning bettors without valid behavior concerns. 

SB 26-131 would also aim to protect those under the legal gambling age of 21 years old in Colorado from advertising practices. The current proposed bill would prohibit "a sports betting operation or its marketing affiliate from targeting, or creating advertising content that is clearly meant for, persons under 21 years old or from advertising on media for which the majority of the demographic audience is reasonably expected to be under 21 years old."

The bill has been toned down a lot from its initial language. It initially proposed a blackout of sorts on sports betting advertisements between 8 a.m. and 10 p.m. or during a live broadcast of a sporting event, but that language has been removed from the bill in its current form. The earlier iteration of the bill also had limitations where sportsbooks were not allowed to include "enhanced payout promotions or information on how to place a sports bet in an advertisement or promotion for a sports betting operation," but that's no longer written into the bill as it heads to the House. These are no longer included, nor is language that would have implemented a ban on player prop bets. 

The bill also sets rules for sportsbook operators to submit "data and metrics" for the preceding calendar year. Data would then be compiled into a public industry report that will be released every three years beginning in 2029. 

These regulations reflect a national trend toward more strict betting oversight, and if this bill is passed, it would greatly impact top Colorado betting sites like DraftKings and BetMGM. Colorado legalized sports betting in November 2019, with it launching in May 2020. Sports betting is available at retail sportsbooks as well as online.