Colorado Lawmakers Introduce Bill to Reform Sports Betting Regulations

Colorado's burgeoning legal sports betting market, which commenced operations on May 1, 2020, following its legalization in 2019, is now facing potential regulatory adjustments. A recently introduced legislative initiative, Senate Bill 131 (SB131), seeks to enact several modifications to the current operational guidelines for sports wagering within the state.

Filed earlier this week, SB131 proposes a prohibition on various popular betting mechanisms and introduces stringent limits on consumer deposits. The bill was formally introduced on Wednesday and subsequently referred to the House Finance Committee for thorough review and consideration.

Key provisions within the proposed legislation include a complete ban on "proposition bets," commonly known as prop bets, which allow wagers on specific occurrences within a game rather than the final outcome. Furthermore, the bill advocates for a complete cessation of credit card usage for all sports betting transactions, aiming to mitigate financial risks for bettors.

Regarding deposits, SB131 stipulates that licensed sports betting operators would be restricted from accepting more than five distinct deposits from any single individual within a 24-hour period. This measure is part of a broader effort to address problem gambling, with the bill's text outlining intentions to limit 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."

In addition to financial transaction limits, the proposed bill targets direct marketing strategies. It seeks to prevent betting operators from dispatching text messages or mobile push notifications that actively encourage bettors to place wagers or make deposits. The legislation also contains sections dedicated to revising rules pertaining to advertising practices and the mandatory submission of annual revenue data by operators.

The legislative effort is championed by a bipartisan group of lawmakers, including Senators Matt Ball and Byron Pelton, alongside Representatives Steven Woodrow and Dan Woog. Representative Woog, in an interview with the Denver Gazette, underscored the imperative behind SB131, framing it as a crucial step to "protect kids and families." He expressed concern over the aggressive advertising tactics employed by sports betting companies on platforms accessible to children, arguing that such exposure normalizes gambling at an impressionable age and fosters addiction before individuals fully grasp the associated risks. Woog emphasized the responsibility of legislators to intervene and safeguard the well-being and future of younger generations against an industry he believes poses significant hazards.

The advancement of SB131 through the legislative process will be closely watched by industry stakeholders and consumer advocates alike, as it could reshape the landscape of sports betting in Colorado.