May 14, 2026, Colorado moved one step closer today to approving one of the most aggressive responsible gambling reforms in the United States after bill SB26-131 was officially sent to Governor Jared Polis, who will now have until June 2026 to sign it into law. The proposal reshapes rules around deposits, advertising, promotions and consumer protection inside one of the fastest growing and most profitable sports betting markets in the country.
The reform was introduced by senators Matt Ball and Byron Pelton, alongside representatives Dan Woog and Steven Woodrow, and forms part of a broader national trend toward tighter controls on aggressive sportsbook marketing, compulsive gambling behavior and underage exposure to betting advertising. The bill passed the House with a 50-13 vote and secured bipartisan backing before the close of Colorado’s 2026 legislative session.
Senator Matt Ball
The most significant change is the ban on using credit cards for sports betting deposits. Operators would also be limited to allowing only five deposits within a 24-hour period, while push notifications and promotional messaging designed to encourage additional betting or deposits would face new restrictions. The legislation would also tighten advertising rules across television, radio, digital media and platforms where projected audiences include individuals under 21 years old.
Senator Byron Pelton
Colorado regulates sports betting under Proposition DD, approved by voters in 2019, with the legal market officially launching on May 1, 2020. The system operates under the supervision of the Colorado Limited Gaming Control Commission (CLGCC) and the Colorado Division of Gaming, both attached to the Colorado Department of Revenue. The Division of Gaming is currently led by Christopher Schroder, who oversees licensing, technical compliance, enforcement, auditing and operational supervision of the market.
The state is also moving forward with another major reform through HB25-1311, which gradually removes tax deductions for free bets beginning on July 1, 2026, increasing tax pressure on operators. Colorado currently applies a 10% tax on net sports betting proceeds.
Market figures show the scale of Colorado’s betting industry. During 2025, the state surpassed approximately USD 6.5 billion in sports betting handle. In March 2026 alone, Colorado recorded roughly USD 560.9 million wagered and more than USD 51 million in gross gaming revenue. The state is increasingly viewed as one of the most important regulatory laboratories in the United States for balancing betting growth, player protection and long-term tax sustainability.
