Lawmakers in Colorado advance sports betting bill

• Senate Bill 131 in Colorado advanced after clearing the House
• The bill introduces enhanced player protection, including daily deposit limits and advertising restrictions
• The proposal would ban the use of credit cards for sports betting

A bill proposing to update the sports betting regulatory framework in Colorado continues to gain traction.

That’s the case for Senate Bill 131 (SB 131), sponsored by Senators Matt Ball and Byron Pelton, as well as Reps. Steven Woodrow and Dan Woog.

The bill pushes deposit limits, restricts betting advertising

Only recently, SB 131 picked up speed after approval from the Colorado House of Representatives.

The draft law passed the House on the third reading with 50 votes in favor and 13 in opposition.

Notably, under SB 131, licensed betting companies in Colorado would be prohibited from accepting more than five separate deposits from a person within a 24-hour period.

"Limiting the size and frequency of deposits or bets because an individual obtains a financial benefit as a result of placing the bet or due to the individual's betting activities, unless the betting activities constitute a suspicious betting activity or are indicative of a gambling disorder," reads SB 131, which has gone through amendments before its current form.

At the same time, the bill features other player protection provisions, including the prohibition of text messages and mobile phone push notifications that may encourage individuals to engage in online sports betting.

Equally important, SB 131 would effectively ban the broadcasting of advertisements or promotions of sports betting between 8 AM and 10 PM, or during live sports events.

Further changes to the sports betting framework in Colorado under the draft law focus on provisions about the compliance of licensed sports betting operators in terms of third-party marketing and advertising services.

The proposal also introduces a $25,000 monetary sanction for operators who violate the established framework.

A ban on credit betting with credit cards is part of the proposed legislation

One of the most important aspects of SB 131 is that it would prohibit the use of credit cards for sports betting.

This represents another policy that complements player protection.

While the proposal, which overhauls the sports betting framework, gained traction recently, the bill was previously stripped of provisions that sought to prohibit prop bets.

The decision to reconsider the prop bets ban came amid a tight state budget.

In light of the recent progress and amendments, SB 131 will have to once again return to the Colorado Senate for approval.

Then, the draft law will be sent to the desk of Gov. Jared Polis, where it will seek his signature before becoming a law.

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