Colorado advances betting bill after removing prop bet ban
Lawmakers in Colorado have advanced Senate Bill 131 after removing a proposed ban on college player prop bets. The decision came during legislative review, narrowing the scope of the broader sports betting reform effort.
The bill, titled “Concerning Protections Against Abusive Practices in Sports Betting,” now focuses on consumer protection measures, including limits on deposits and restrictions on advertising. Originally introduced with stricter provisions, the legislation has been revised to balance oversight with industry continuity. The measure is continuing through the legislative process and, if approved, will introduce updated safeguards for bettors while allowing operators to maintain current offerings.
Why prop bet ban dropped
Prop bets are bets on specific game events rather than the final result. Instead of waiting for the entire game, these bets provide results in a couple of minutes as opposed to normal wagers. They are widely employed in sports betting because of their variety and rapid speed. Because of prop bets’ explosive growth and popularity, regulators have begun to scrutinise them more closely, voicing concerns about their addictive nature and their impact on wagering behaviour.
Due to worries about prop bets’ potential for addiction, Senate Bill 131 first suggested outlawing them. Citing the possible loss of tax revenue, lawmakers subsequently decided against the prohibition. Senator Matt Ball pointed out that because of other limitations, including the credit card ban, lifting the ban decreased the estimated financial effect from $2.4 million to roughly $800,000.
Operators of sports betting campaigned against the prohibition, claiming it would reduce Colorado’s competitiveness. Concerning consumer protection, lawmakers also took into account the possibility that users would switch to offshore platforms if legitimate websites did not provide prop bets.
Credit card ban
The bill includes a ban on using credit cards for sports betting, intended to prevent people from gambling with borrowed money. The measure is intended to reduce financial harm and encourage bettors to use only available funds.
The restriction is expected to have a limited effect on revenue since many sportsbooks already do not accept credit cards. Senator Matt Ball noted that the rule affects a smaller group of users compared to other measures.
From a behavioural perspective, the ban introduces friction that may discourage impulsive betting. By requiring bettors to rely on existing funds, the measure promotes more responsible participation in sports wagering.
Consumer protection measures
A cap on deposit transactions is introduced by Senate Bill 131, which limits users to five every 24-hour period. By compelling users to pause and reconsider their actions, the policy aims to reduce quick, impulsive expenditure in online betting.
The bill also restricts sportsbook advertising. Promotions are banned during daytime hours and live sporting events, and terms such as “bonus” or “no-sweat bets” are prohibited. Lawmakers argue these steps reduce misleading messaging and help create a more transparent environment for bettors.
Transparency and regulatory changes
Operators must submit yearly reports detailing user behaviour, revenue, and compliance in accordance with Senate Bill 131. The intention is to provide regulators with comprehensive information that can direct future policy decisions and enforcement.
The bill also modifies the allocation of tax proceeds from sports betting. In order to guarantee steady funding for infrastructure projects, transfers to the state’s water plan fund must now equal or surpass the amounts from the prior year.
Current status of Senate Bill 131
After the removal of the prop bet ban, Senate Bill 131 advanced through the Senate Appropriations Committee. The bill still requires approval from the full Senate and the House before becoming law, and further amendments remain possible as stakeholders continue to weigh in.
If passed by both chambers, the bill will move to the governor for final approval. The adjustments already made, particularly the removal of the prop bet ban, have increased its chances of success.
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