Colorado lawmakers are considering a bill that would place heavy restrictions on the state’s sports betting industry.
Most notably, the bill limits prop betting and implement other restrictions to address problem gambling rates.
SB131 would ban operators from offering prop bets and would also limit bettors to five deposits per within 24 hours. The bipartisan bill would also prohibit customers from funding an account with credit cards.
Lastly, the bill bans certain types of marketing, including mobile push notifications, enhanced payout promotions, and information on how to place a bet in advertisements.
“Coloradans have become increasingly addicted to betting in the face of new technologies and aggressive marketing tactics, trapping consumers in cycles of debt,” sponsor Rep. Steven Woodrow (D) told the Denver Gazette. “This bill creates important guardrails to curb underage gambling, restrict harmful advertising, and crack down on predatory operators.”
Bill Heavily Restricts Other Market Aspects
Colorado legalized sports betting in 2019 with most funds earmarked for the Colorado Water Plan Grant Program, which funds water conservation projects. The state saw over $6 billion wagered online in 2025, a 130% increase from 2020, according to the Colorado Department of Revenue.
The bill has already been passed out of the House Finance Committee. Other aspects of the proposal include:
- Prohibiting advertising sports betting in broadcasts from 8 a.m. to 10 p.m.
- Bans advertising during a live sports competition.
- Operators must provide betting data and metrics to the state each year.
Other states have also considered betting limits in recent months after MLB opened an investigation into micro betting accusations surrounding Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz. The accusations came to light in August and both were indicted in November.
Ohio Gov. Mike DeWine (R) later moved to ban micro prop bets in the state. In January, New York Assemblymember Linda Rosenthal also proposed a bill that would ban live betting.
The country now has 39 states, along with Washington D.C. and the U.S. territory of Puerto Rico, now offering legalized sports betting since the virtual ban on betting outside Nevada was overturned by the Supreme Court in 2018.
