Colorado Considers Cracking Down on Sports Betting Industry

Lawmakers in the Centennial State are considering a significant crackdown on the sports betting industry.

A group of Colorado Senators introduced SB 26-131 on Wednesday. The bill proposes a series of changes to help protect residents who wager on sports. The goal is to help curb the rise of problem gambling by adding a new layer of safeguards.

There are two major areas that SB 26-131 seeks to address. The first is protecting bettors from themselves and sportsbooks. The other is aimed at limiting how and when operators can advertise. Below is a table with some of the key changes the bill would make to both areas.

The bill is currently under review by the Senate Finance Committee.

Debate Will Go Beyond Sports Betting

Colorado isn’t the only state considering a massive overhaul of its sports betting market, but the debate will go beyond the industry.

Lawmakers may support significant regulatory changes, but there are concerns about the impact on the state’s tax revenue. Since the proposed changes would be the first of their kind, there is no way to predict how much money the state will be losing.

Unlike other states, the Colorado sports betting market generates tax revenue to fund crucial freshwater projects. The state is fighting with Utah, California, and Arizona over rights to the region's dwindling drinking water, leading the federal government to intervene. While the state has priority over the Colorado River rights, a tense relationship with the White House could change that.

As much as lawmakers and residents are concerned about problem gambling, access to clean drinking water is far more important. This will lead to strong opposition in both chambers, making SB 26-131 a long and difficult road ahead.