• News

Colorado Sports Betting Protections Take Effect August 12, 2026

Quick Glance at the Facts

• Colorado’s SB26-131 bans credit card deposits and caps deposits at six per 24-hour period starting August 12, 2026
• The law prohibits mobile push notifications and texts that solicit bets or deposits from licensed sportsbooks
• A proposed ban on prop bets was removed before passage to protect an estimated $1.6 million in state tax revenue

Colorado’s new sports betting protections law takes effect Wednesday, August 12, 2026, bringing strict limits on how bettors fund their accounts and how sportsbooks can contact them. The rules apply to all licensed, state-regulated online sportsbooks operating under the Proposition DD framework approved by voters in 2019.

Inside Colorado’s SB26-131 Sports Betting Protections

Gov. Jared Polis signed SB26-131 in early June 2026 after it passed with bipartisan support on August 11, 2026. Sen. Matt Ball, D-Denver, and Sen. Byron Pelton, R-Sterling, were among the bill’s prime sponsors. The Colorado General Assembly’s bill record shows the measure became law without a safety clause after the legislature adjourned on May 13, 2026.

The law bans funding betting accounts with credit cards, either directly or indirectly. A violation is a class 2 misdemeanor, and the Colorado Limited Gaming Control Commission can impose penalties up to $25,000. Many sportsbooks had already stopped accepting credit card deposits before this law passed.

Under SB26-131, new rules also cap deposits at six separate transactions per rolling 24-hour gaming day, and sportsbooks can no longer send mobile push notifications or text messages asking players to place bets or make deposits. The law also bans advertising to people under 21, including on media where most of the audience is expected to be under 21, a point highlighted in an August 3, 2026 release from the Colorado Senate Democrats.

A proposed ban on prop bets was stripped from the bill before passage. According to Legal Sports Report, Sen. Ball estimated that banning prop bets would have cost the state about $1.6 million, roughly 2.5% of projected tax revenue. Legal Sports Report’s coverage of the bill’s initial fiscal note found that prop bets account for about 25% of wagers.

What Colorado Bettors Should Watch Next

Under SB26-131, starting February 1, 2028, licensed sportsbooks must report transactional data to the Colorado Division of Gaming, as confirmed by the Colorado Senate Democrats release. The Division will publish a public report every three years beginning January 1, 2029.

Colorado’s sports betting market has grown rapidly. More than $6.3 billion was wagered online in 2025, a 130% increase from 2020, according to the Colorado Division of Gaming.

How This Affects Colorado Sports Bettors

These changes hit deposit habits and communication preferences for anyone using licensed Colorado sportsbooks. If you fund your account with a credit card, you will need to switch to a debit card, bank transfer, or another approved method after August 12.

Bettors will also see fewer promotional messages on their phones once the push notification and text solicitation ban kicks in. Prop bets remain available, and the betting experience stays largely the same for players who already use debit or voucher deposits. For more on Colorado’s sportsbook options, check out our Colorado state guide.

GamblingNerd Take

I think SB26-131 is a step in the right direction, and more states should follow Colorado’s example. Sportsbook marketing campaigns are everywhere (TV, website ads, radio, sports arenas, to name a few) and it’s good to cut down on the mobile advertising these apps love so much.

The ban on credit card deposits also makes it easier for people with gambling problems to not go into debt over gambling with money they don’t have. In my opinion, banning credit card deposits should be a condition of entry for every operator in every state. I look forward to seeing how this new regulation impacts Colorado’s betting atmosphere, and hope to see neighboring states enact similar restrictions.