A new Colorado law will restrict credit card use and limit daily deposits for sports bettors starting Wednesday. This follows Governor Jared Polis’s signing of the bill on June 2. SB 131, crafted by Sen. Matt Ball, D-Denver, also prohibits push notifications soliciting bets and institutes protections against marketing to minors, aligning with the state’s booming online betting sector. “Pernicious algorithms and advertisements are increasingly preying on vulnerable online sports bettors,” Ball said. He emphasized the importance of protection as online sports betting surges in popularity, particularly to prevent addiction and protect underage Coloradans.
Key Changes Under SB 131
Effective August 12, SB 131 introduces several new regulations. Credit card funding for betting accounts is banned, directly or indirectly, which many sportsbooks had already initiated voluntarily. Bettors are now limited to six deposits within any 24-hour period. Additionally, mobile push notifications for bet or deposit solicitations are prohibited. And the law also mandates that advertising shouldn’t target audiences predominantly under 21. Sportsbooks must report specific wagering data to both the state and relevant sports bodies. This includes transactional data from the previous year, with the first broad report due in 2028. Starting January 1, 2029, the Division will release public reports every three years based on these findings.
Focus on Revenue and Tax Allocation
Coloradans approved Proposition DD back in 2019, legalizing sports betting and earmarking the majority of tax proceeds for the Colorado Water Trust. SB 131 ensures that each year’s contribution matches or surpasses the previous year’s. The sports betting market has grown significantly, with more than $6.3 billion wagered online in 2025—up 130% from 2020, according to the Division of Gaming. The bill initially considered banning prop bets, which account for 25% of wagers. However, lawmakers opted against this to avoid a projected $1.6 million revenue loss—about 2.5% of expected tax revenue—according to Ball. For comparison, Louisiana sees a much larger share of revenue from props, estimated at 40%.
Uncertainties and Next Steps
While these measures aim to regulate and safeguard bettors, some uncertainties persist. How these changes will affect individual betting behaviors isn’t fully understood yet. And whether the restrictions will impact overall market revenue remains an open question, especially with the state’s betting market evolving so rapidly. The next steps are clear, however. The first annual data report is due February 2028, with a statewide public report to follow the year after. These documents will likely offer insight into the law’s efficacy and its economic ramifications.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
