Colorado Advances Betting Reform Bill With Removal Of Prop Bet Ban

Colorado lawmakers have removed a proposed ban on prop bets from Senate Bill 131, clearing a key obstacle for the legislation to advance. The bill, titled Protections Against Abusive Practices in Sports Betting, has been revised after committee discussions raised concerns around cost and jurisdiction.

Earlier drafts included a definition of prop bets and a prohibition on licensed operators offering them. That section has now been removed, reducing one of its most debated elements.

Revenue concerns drive policy adjustment

The decision to remove the ban was influenced by projected financial impact. Initial estimates suggested the restriction could reduce state sports betting revenue by nearly $2.4m in the first fiscal year.

With the ban removed, the projected loss has dropped to around $800,000. According to bill sponsor Matt Ball, the revised version still affects revenue but avoids a larger hit to the state’s budget.

Legislators had raised concerns that reduced income could affect funding for public projects, including water infrastructure. 

Credit card restriction remains in place

While the prop bet provision has been removed, the bill retains a ban on using credit cards to fund sports betting accounts. 

Sen. Ball said the impact would be limited, noting that many bettors already use debit-based methods. He added that several operators have voluntarily phased out credit card payments.

Under the revised bill, any operator still offering credit card deposits would be required to remove the option. The policy is aimed at reducing risk among players who rely on borrowed funds to place bets.

Broader consumer protection measures retained

The revised bill includes a range of regulatory changes. Player deposits would be capped at five transactions within a 24-hour period, introducing a limit on funding frequency.

Advertising restrictions also remain, prohibiting sportsbook promotions during daytime hours and live sporting events. The use of certain promotional language, including bonus and no-sweat offers, is also restricted.

Operators would be required to submit annual operational data to the state, increasing transparency in the sector.

Changes have also been made to how tax revenue is allocated. The updated version removes earlier language linking transfers to available balances. Instead, it requires that contributions to the state’s water plan meet or exceed the previous year’s levels.

The bill has advanced through the Senate Appropriations Committee without the prop bet ban. It now moves to the full Senate, where approval will be required before it proceeds further in the legislative process.

Colored has removed the ban on prop bets from its latest bill. While this move might impact the state’s gambling revenue, it is an integral step in advancing the legislation. But credit cards remain banned to protect players.