Colorado’s Sports Betting Protections Act caps daily deposits, bans credit cards and outlaws player limiting. Gov. Jared Polis (D) signed SB 26-131 into law, a bill to increase sports betting protections in the state; The new law will go into effect on Aug. 12. Supporters say the bill is aimed at refining Colorado’s existing legal sports betting system rather than restricting it outright. As one sponsor noted during hearings, the intent is to ensure ‘the product they were promised is the product they actually got.’
Deposit Rules and Payment Restrictions Take Center Stage
One of the central components of the bill is a set of new limits on how players can fund their betting accounts… The legislation would prohibit the use of credit cards for sports betting deposits entirely. The law also bans funding bets with credit cards, a violation classified as a class 2 misdemeanor. It would also restrict account holders to a maximum of six deposits within a 24-hour period, a change designed to reduce repeated funding behavior after losses.
Supporters of the measure argue that these restrictions are intended to create what one legislator described as guardrails around problematic betting patterns, particularly situations involving repeated deposits in short periods.
Advertising Limits and Player Protection Measures
SB 26-131 also introduces significant changes to how sportsbooks can market their services. The bill would prohibit operators and their marketing partners from targeting individuals under 21 years old. Colorado’s Sports Betting Protections Act (SB26-131), effective August 12, 2026, became the first state law to prohibit sportsbooks from sending promotional push notifications or text messages encouraging bets, while the marketing restrictions carry civil penalties of up to $25,000 per violation through the Colorado Limited Gaming Control Commission.
The bill also includes protections for winning bettors, preventing sportsbooks from imposing account limits on players solely due to success, unless there are verified behavioral concerns.
Responsible Gaming Standards and Reporting Requirements
Colorado is one of over 30 states with legal online sports betting. Nationwide, Americans bet nearly $167 billion through state-sanctioned sportsbooks in 2025, up 11% from 2024, according to the American Gaming Association. In February, the Division of Gaming reported $3.37 billion in wagers for the fiscal year to date, up nearly 7% from the previous year.
Roughly 16% of people who gamble in Colorado may be at risk for problematic wagering, according to the Problem Gambling Coalition of Colorado. Additionally, sportsbooks would be required to submit annual data and performance metrics to state regulators. This information would be compiled into a public report released every three years starting in 2029, adding a new layer of transparency to Colorado’s regulated betting market.
Leo Falsafi is a digital marketing veteran and senior journalist at Virlan.co, where he covers the intersection of digital marketing, gaming, and breaking US trending news. With nearly two decades of hands-on experience in SEO and digital strategy, Leo has consulted for and scaled hundreds of companies. His deep industry roots allow him to deliver sharp, fact-checked insights and analysis on the trends shaping today's digital landscape.