Colorado Senate Passes Bill to Help Fight Problem Gambling

The Centennial State just took one step closer to cracking down on problem gambling.

The Colorado Senate passed SB26-131 by a vote of 20-14 on Tuesday, sending it to the House for approval. 

The bill originally proposed a massive overhaul of the market’s framework, but most of the larger changes were stripped as it moved through the Senate. The following are the most significant updates that SB26-131 would make if passed:

• Ban on push notifications that offer bet promos/bonuses

• Officially ban credit card deposits

• No more than six deposits allowed in a 24-hour period

All three of these efforts aim to combat problem gambling. 

The ban on push notifications is meant to limit the contact sportsbooks can have with customers. While it doesn’t go as far as the severe advertising restrictions originally proposed in the bill, it could make all the difference for those vulnerable to gambling addiction.

The other two changes will help protect bettors from overspending. A deposit limit will stop bettors before they can lose any more money, giving them time to cool off. While credit card deposits aren’t common in Colorado, an official ban will ensure that smaller operators are no longer allowed to accept them.

Colorado provides a case study for the industry

Colorado’s sports betting bill is providing a real-time case study on the ability of states to fight problem gambling.

While most lawmakers agree that problem gambling is a serious threat to the public, bills proposing the changes needed to curb it have failed. Those failures have been due to the devastating impact most proposals would have on tax revenue. That’s a big problem for states like Colorado, where the money is being used to fund crucial fresh water projects. 

When SB26-131 was proposed, it included language that would ban all prop bets. However, it was estimated that the ban would cost the state around $1.5 million annually. That’s a big loss, especially as brutal drought conditions become more common.

The bill has lost most of its bite, but the remaining proposals will still cause Colorado's sports betting market to lose around $1 million annually. If the House keeps those in the bill, it will show states a path to some limited, but less costly changes. However, if those changes are stripped away, it would further fuel concerns that states are unable or unwilling to take meaningful action against problem gambling.