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85% Colorado Bill Targets Sports Betting Ads, Deposit Limits, and Bettor Restrictions
Key Highlights
- Colorado lawmakers are advancing a bill that would restrict sports betting advertising, cap player deposits, and ban sportsbooks from limiting winning bettors.
- The proposed legislation represents one of the most aggressive consumer protection efforts in any legal U.S. sports betting market to date.
- If passed, the bill could reshape how major operators acquire customers and manage risk in Colorado’s $5 billion annual betting market.
Colorado is moving forward with legislation that could dramatically change how sports betting works in the state.
The Online Problem Gambling Act, SB26-131, would place limits on advertising, cap how much money bettors can deposit, and stop sportsbooks from restricting successful bettors in one of the US’ largest legal betting markets.
Ad Limits on Select Digital Platforms
Sportsbooks in Colorado and other legal markets currently run aggressive promotional campaigns across TV, digital platforms, and sports broadcasts. The original bill aimed to ban all traditional broadcast advertisements from 8 a.m. to 10 p.m., but has been revised to “prohibit sports betting operation[s] or its marketing affiliate from targeting, or creating advertising content that is clearly meant for persons under 21 years old or from advertising on media for which the majority of the demographic audience is reasonably expected to be under 21 years old.” This could mean no more sports betting ads on Instagram or TikTok.
For sportsbooks, promotional bonuses and aggressive advertising drive new customer sign-ups. These are key growth strategies in competitive markets. Restricting ads on certain platforms could slow customer acquisition significantly. Major operators like DraftKings, FanDuel, and BetMGM spend millions on Colorado marketing annually.
Daily Deposit Limits to Curb Problem Gambling
Colorado’s bill, if passed, would also impose deposit limits on betting accounts. Players would no longer be able to use credit cards to fund accounts and would be limited to five deposits within any 24-hour period. Operators in violation of the proposed new law would be charged with a class 2 misdemeanor and face a maximum fine of $25,000.
Calls to Colorado’s gambling addiction hotline increased 50 percent in the first year after the opening of its legal sports betting market. In a related survey, 73 percent of respondents said the legalization of sports betting has exacerbated problem gambling in the state.
“Online sports betting has placed casinos in the pocket of nearly every Coloradan with little protections built in for those addicted to gambling or our young people,” said Sen. Matt Ball (D-Denver). “SB26-131 is about reasonable guardrails. It honors what voters approved in 2019 while making sure that an industry that has grown from $1 billion to more than $6 billion wagered in just a few years isn’t doing so at the cost of our families’ financial security, our kids’ wellbeing, or the integrity of the games we love.”
Banning the Practice of Limiting: A Win for Sharp Bettors
The bill’s most controversial action is a proposal to ban sportsbooks from restricting bettors. Currently, operators can reduce bet sizes or close accounts of customers who win consistently. This practice, called “limiting,” helps sportsbooks manage risk and protect profit margins.
A statewide ban on limiting represents a fundamental challenge to how operators price odds and manage their books. Sharp bettors (skilled gamblers who consistently find profitable wagers) are typically limited quickly at most sportsbooks. If Colorado bans this practice, it could become a preferred destination for sharp bettors nationwide. However, operators warn this could make it harder to offer competitive odds to recreational players.
