Colorado Tightens Rules for Sports Betting Operators

United States.- 13 August 2026 | www.zonadeazar.com Colorado has introduced a new package of restrictions for online sports betting aimed at strengthening consumer protection and limiting certain commercial practices used by operators.

SB26-131, known as the Sports Betting Protections Act, introduces new controls covering deposits, payment methods, promotional communications and advertising aimed at younger audiences.

News Details

From 12 August, online sportsbook operators cannot accept more than six separate deposits from the same customer during a gaming day.

Credit cards can no longer be used to fund deposits connected with sports betting.

The legislation also prohibits operators from sending account holders push notifications or text messages soliciting additional bets or deposits.

Violating the credit-card prohibition can constitute a Class 2 misdemeanour, while regulators may impose financial penalties of up to US$25,000.

Advertising and Under-21 Protection

The legislation also introduces restrictions on advertising aimed at people under 21 years old.

Sports betting operators and their marketing affiliates cannot create advertising specifically targeting this age group or place promotions in media where the majority of the audience can reasonably be expected to be under 21.

The measure is intended to reduce younger consumers’ exposure to sports betting products following rapid market growth since Colorado legalised the activity in 2020.

Industry Context

Colorado residents wagered a record US$6.4 billion during the latest fiscal year, reflecting the continued expansion of the state’s sports betting sector.

Since legalisation, Colorado has collected more than US$154 million in sports betting taxes, with a significant proportion supporting water infrastructure and conservation projects.

The new framework seeks to balance the importance of this revenue stream with stronger safeguards addressing potential gambling-related harm.

New Data Requirements

Beginning in 2028, online sports betting operators will be required to provide the Division of Gaming with annual data and metrics covering their operations during the previous calendar year.

The regulator will use the information to produce periodic public reports examining the development of the market.

The legislation also requires annual transfers from the sports betting fund to the Water Plan Implementation Cash Fund to be no lower than the amount transferred in the preceding fiscal year.

Next Steps or Impact

Operators will need to immediately adapt their payment systems, marketing strategies and customer communications to comply with the new requirements.

The restrictions could have a particular impact on acquisition and re-engagement strategies because sportsbooks will no longer be able to use certain direct communications to solicit deposits or bets.

Colorado is therefore seeking to preserve the fiscal benefits of its regulated sports betting market while introducing stronger protections against problematic gambling and underage exposure.

Editó: @fonta

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