Colorado has enacted a comprehensive responsible gambling bill, making it the first state to prohibit gambling-related push notifications and text messages from operators. This legislation, which passed on May 13, aims to enhance sports betting regulations and protect consumers.
The bill, known as SB 26-131, received bipartisan support in the state legislature, with the Senate voting 20-15 to approve it along with amendments from the House. It now awaits the signature of Governor Jared Polis.
If signed into law, the new regulations will prevent sportsbook operators from sending push notifications or text messages to encourage bets or deposits. Additionally, the bill will limit the number of daily deposits a player can make. While the full impact of these changes is yet to be determined, some experts have raised concerns that such restrictions may push players towards unregulated sportsbooks.
Furthermore, the legislation mandates that operators share anonymized data with regulators, restricts advertising aimed at youth, and prohibits credit card deposits.
Senator Matt Ball, one of the main sponsors of the bill, expressed confidence that SB 26-131 will become law. He dismissed industry claims suggesting that the ban on push notifications could drive players to offshore or illegal sportsbooks, stating, “There’s no evidence to suggest that people are going to flee the legal market because they’re no longer getting push notifications.”
Ball emphasized that the bill is a crucial step in addressing the public health issues linked to the rapid growth of online sports betting, highlighting the challenges faced by individuals with gambling problems in an environment of constant digital engagement.
However, the Sports Betting Alliance, which includes major industry players like FanDuel and DraftKings, criticized the new restrictions, arguing they could hinder the competitiveness of regulated sportsbooks. They warned that these changes might drive responsible bettors to unregulated markets, potentially resulting in significant tax revenue losses for the state.
According to the SBA, “Unregulated sports betting operators flourish in states where sports betting is not yet legal,” underscoring the risks associated with offshore sites that lack consumer protections and responsible gaming measures.