Colorado Seeks to Pass Restrictions on Sports Betting, Advertising

Lawmakers in Colorado are now looking to pass changes to the state’s existing regulatory gambling framework, hoping to limit the potential harms that are tied to the sports gambling sector specifically, as well as pass a broader regulation on gambling incentives and advertising.

Colorado Seeks to Tighten Regulatory Screws on Gambling

Senate Bill 26-131, co-sponsored by Senators Matt Ball, Byron Pelton, Steven Woodrow, and Dan Woog, seeks to specifically strengthen consumer protection. Some of its key points articulated include a prohibition on accepting five separate deposits from the same individual within 24 hours.

Another restriction prohibits operators from limiting the size and frequency of deposits or bets because an individual is financially benefiting from their betting activity, unless there is evidence of a gambling disorder or suspicious betting activity.

The bill also seeks to prohibit push notifications sent to consumers in order to incentivize them to continue gambling, potentially limiting the outreach scope of licensed operators in the Centennial State.

Senate Bill 26-131 also seeks to prohibit individuals from sharing “enhanced payout promotions or information on how to place a sports bet in an advertisement or promotion for a sports betting operation,” suggesting that the state is taking aim at influencers.

No More Limiting Winning Customers or Excessive Advertising

Individuals would also be blocked from broadcasting an advertisement or promotion for a sports betting operation between 8 am and 10 pm and during a live broadcast event.

These restrictions are all meant to offer fewer incentives during the “heat of the moment” to make spontaneous wagers.

Notably, Section 5 of the proposed legislation prohibits an operator from offering or accepting proposition bets or directly or indirectly accepting credit card deposits. Under Section 6, the Colorado Limited Gaming Control Commission is empowered to levy penalties of up to $25,000 against operators who violate these prohibitions.

Affiliate marketing would also be impacted under the draft law, as “a sports betting operator or internet sports betting operator to comply with certain requirements in contracting with and compensating a third party for marketing and advertising services,” the text of the proposed bill reads.