Colorado bill would ban sportsbook alerts, cap deposits

The Colorado Legislature on May 13 repassed SB 26-131, a bipartisan consumer-protection bill, sending it to Gov. Jared Polis after a 20-15 vote in the Senate on amendments added by the House.

If Gov. Polis signs the measure, sportsbooks would be prohibited from sending operator-initiated push notifications and text messages that solicit bets or deposits. The law would also cap how many deposits a player can make in a day, ban credit card deposits, require operators to share anonymized player data with state regulators, and limit advertising likely to reach youth audiences.

Sponsors described the bill as a response to the growth of online sports betting and increased personalized marketing from operators. Sen. Matt Ball, a primary sponsor, wrote that he expects SB 26-131 to become law and rejected industry claims that restrictions on notifications will drive players to offshore sites. He added, “There’s no evidence to suggest that people are going to flee the legal market because they’re no longer getting push notifications.”

The Problem Gambling Coalition of Colorado, the Campaign for Fairer Gambling and Healthier Colorado supported the bill. Jamie Glick, executive director of the Problem Gambling Coalition, wrote that the organization backs stronger consumer protections and limits on marketing that can trigger impulsive gambling behavior. Glick said requiring consumers to opt in to inducements could reduce harm while preserving choice, and noted the bill instead imposes a blanket ban on operator-initiated push notifications and texts.

Industry groups raised concerns that the restrictions could have unintended consequences. The Sports Betting Alliance, representing major operators, warned the rules could make regulated sportsbooks less competitive and could lead some adults to place wagers on unregulated sites, which the alliance said lack U.S. protections for age verification and responsible gaming and could reduce state tax revenue.

Earlier drafts of the legislation included additional measures that were removed during negotiations. Lawmakers dropped proposals to ban proposition bets, limit broadcast advertising windows and restrict operators from limiting winning bettors. The version that passed focuses on digital outreach limits, financial controls and data sharing for oversight and research.

Responsible-gambling experts flagged trade-offs in policy design. Josh Ercole, executive director of the Council on Compulsive Gambling of Pennsylvania, warned tighter rules can push some bettors toward unregulated markets and suggested an opt-in model for targeted communications as a possible compromise.

The next step is a decision by Gov. Polis to sign or veto SB 26-131. If signed, Colorado would be the first state to combine a ban on operator-initiated push alerts and texts with caps on daily deposits as part of its regulatory framework for online sports betting.