Colorado Sports Betting Bill Seeks Prop Bet Ban and Tighter Rules

A new Colorado sports betting bill could significantly reshape how online wagering operates in the state.

Senate Bill 26-131, introduced by a bipartisan group of lawmakers, proposes banning proposition bets, limiting daily deposits, restricting sportsbook advertising, and prohibiting credit card funding. The measure is currently assigned to the Senate Finance Committee, with no hearing date scheduled.

If passed, it would mark one of the most substantial regulatory updates since Colorado legalized online sports betting in 2020.

Prop Bets Could Be Removed

The most impactful part of SB 26-131 is a near-total ban on proposition bets.

Under the bill, a prop bet is defined as any wager tied to an individual athlete’s performance or a specific in-game event rather than the final result. That includes bets on player statistics, officiating decisions, penalties, injuries, or timing-related outcomes.

Common markets such as first touchdown scorer, player point totals, or milestone-based bets would likely be eliminated.

Supporters argue that prop bets carry higher integrity risks because they focus on isolated actions. Unlike final score wagers, they may be influenced by a single moment or decision during a game.

Colorado would join a growing number of states that have at least partially restricted prop betting.

A Rapidly Growing Market

Since legalization, Colorado’s online sports betting market has expanded quickly.

In 2025 alone, more than $6 billion was wagered online across the state. Monthly betting totals frequently exceed $600 million. Lawmakers backing the Colorado sports betting bill say that the speed and scale of digital wagering now require stronger guardrails.

Critics counter that prop bets account for a significant share of total betting activity. Removing them could reduce overall wagering volume and state tax revenue.

Deposit Limits and Credit Card Ban

SB 26-131 also introduces operational restrictions to slow betting activity.

If enacted, sportsbooks would:

• Be limited to accepting no more than five deposits per customer within 24 hours
• Be prohibited from accepting credit card deposits
• Be barred from sending push notifications or text messages encouraging additional wagers or deposits

The deposit cap is intended to reduce rapid, repeated funding behavior. The credit card ban would prevent bettors from wagering with borrowed money.

Together, these changes would make Colorado’s framework more restrictive than many other regulated states.

Stricter Advertising Rules

The bill would also tighten sportsbook marketing practices.

Advertisements would not be allowed to promote bonus offers or provide instructions on how to place wagers. In addition, sportsbook ads would be prohibited between 8 a.m. and 10 p.m., as well as during live sporting events.

For operators, that could require significant adjustments to current marketing strategies, particularly those centered around sign-up bonuses and in-play betting promotions.

Limits on Account Restrictions

Another notable provision addresses how sportsbooks manage customer accounts.

Under the proposal, operators would not be allowed to restrict or ban customers solely because they won. Account limitations would only be permitted in cases involving suspicious activity or signs of a gambling disorder.

This provision could draw attention from regular bettors who have previously faced account limits after successful wagering streaks.

What Happens Next

The Colorado sports betting bill does not aim to eliminate wagering altogether. Instead, it narrows certain betting products and introduces tighter operating standards in a market that has grown quickly over the past five years.

For bettors who stick to final score markets, the impact may be limited. Those who prefer prop bets, frequent deposits, or bonus-driven promotions could see more noticeable changes if the bill advances.

The proposal remains in committee and may be revised as it moves through the legislative process. Even so, it reflects a broader national trend toward stricter oversight of digital wagering.

Colorado has been considered one of the more active states within the broader landscape of sports betting casinos in the US, and changes here could influence regulatory discussions elsewhere.

Whether SB 26-131 passes in its current form or is amended along the way, it signals growing momentum behind tighter controls in one of the country’s more established betting markets.