Colorado is considering several major changes to its sports betting regulations, including removing player prop bets.
The measures outlined in Senate Bill 131 would be part of an effort to help reduce sports betting addiction, particularly in youths.
Key Takeaways
- Colorado could become the first pro-sports betting state to block prop bets.
- State lawmakers worry that tax revenue the state received isn’t enough to outweigh increases in addiction.
- Sports betting ads could be banned during the majority of the day and live sporting events.
The new bill would greatly shift Colorado’s betting landscape.
“My intent for joining this bill is to protect kids and families,” said Rep. Dan Woog (R-Erie), one of the bill’s primary sponsors. “We are seeing sports betting companies aggressively advertise on programs and platforms that children are watching, normalizing gambling at a young age and fueling addiction before kids have the capacity to understand the risks.
“As lawmakers, we have a responsibility to step in when industries target our kids and put their health and future at risk. These are commonsense guardrails that ensure profit never comes before our kids.”
If approved, Colorado sportsbooks would no longer be allowed to offer proposition bets, which are wagers on small events that don’t directly relate to the final outcome of an event; for example, if Bo Nix will throw for 200+ yards, or if Nikola Jokic will score 30 points. While multiple states restrict college player props, no state with legal sports betting has an outright prohibition on prop bets at all levels.
SB 131 would also implement a maximum of five deposits per customer every 24-hour period. This would help ensure that impulsive customers wouldn’t be able to constantly flood their sportsbook account with new funds.
Additionally, sportsbooks would not be allowed to accept credit cards as a form of deposit, ensuring customers only risk money they possess.
The bill also seeks to eliminate sportsbooks’ ability to send push notifications or text messages to bettors. It would revamp the guidelines for acceptable language in sports betting advertisements, in the spirit of upholding responsible gambling.
Finally, the new proposal would mandate sportsbook operators send their transactional data reports to the Colorado Department of Revenue’s Gaming Division. A report summarizing the information would be released every three years beginning in 2029.
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Coming at a cost
Voters approved Colorado sports betting statewide in 2019 with Proposition DD. The market launched in March 2020, meaning that the state is approaching six years of legal sports wagering.
Since launching, Colorado sportsbooks reported $2.1 billion in revenue and paid $138.2 million in gaming taxes, the majority of which was allocated to the Colorado Water Plan Grant Program to fund water conservation and storage.
Despite the enormous economic benefits, state legislators believe that sports betting has still come at a great cost.
“Though legalized sports betting has helped fund Colorado water projects, the dangers of online gambling become more clear each day,” said Rep. Steven Woodrow (D-Denver). “Coloradans have become increasingly addicted to betting in the face of new technologies and aggressive marketing tactics, trapping consumers in cycles of debt. This bill creates important guardrails to curb underage gambling, restrict harmful advertising, and crack down on predatory operators.”
The Colorado Department of Revenue found that local residents and guests risked more than $6 billion in online sports bets in 2025, up 130% from the 2020 yearly period.
Additionally, 36% of boys age 11-17 said they’d gambled in the past year, despite state laws requiring sportsbook users to be 21 or older.
Sports betting ad block
Sports betting’s increasing prevalence has resulted in an influx of ads, primarily during sports events.
On top of its sweeping reforms, SB 131 would create a “dead zone” for sports betting ads from 8:00 a.m to 10:00 p.m., during which these ads could not be shown. They would also be banned from live sporting events.
