Officials in Colorado are turning their crosshairs on the sports betting industry in a bid to stem instances of gambling addiction in the state.
Legislators are particularly concerned about the impact on children and have introduced Senate Bill 131 bill, which would limit a bettor to five deposits within 24 hours and ban credit cards for the purposes of sports betting.
Dangers of legalized gambling are clear, despite benefits, says senator
Voters in Colorado threw their support behind Proposition DD, a Colorado ballot measure that legalized and taxed sports betting, directing most of the tax revenue to fund water conservation projects across the state.
Rep. Steven Woodrow, who is a co-sponsor of the bill, acknowledges the positive effect on the state’s conservation efforts. However, he believes the sector needs tighter oversight to stave off the threat of gambling addiction among the state’s younger population.
Speaking on the release of the bill, Woodrow said: “Though legalized sports betting has helped fund Colorado water projects, the dangers of online gambling become more clear each day,
“Coloradans have become increasingly addicted to betting in the face of new technologies and aggressive marketing tactics, trapping consumers in cycles of debt. This bill creates important guardrails to curb underage gambling, restrict harmful advertising, and crack down on predatory operators.”
Families and children to get protection if bill passes
The bill has been assigned to the House Finance Committee, and co-sponsor Rep. Dan Woog hopes they focus on family safety when considering the vote.
He said: “My intent for joining this bill is to protect kids and families. We are seeing sports betting companies aggressively advertise on programs and platforms that children are watching, normalizing gambling at a young age and fueling addiction before kids have the capacity to understand the risks,
“As lawmakers, we have a responsibility to step in when industries target our kids and put their health and future at risk. These are commonsense guardrails that ensure profit never comes before our kids.”
On top of deposit limits and credit card bans, Senate Bill 131 would bar sports betting companies from sending certain push notifications and text messages to account holders in Colorado and establish limits on the language permitted in sports betting advertisements.
The measure would also require operators to submit annual transactional data and performance metrics to the Colorado Department of Revenue’s Division of Gaming, which would be required to publish a public report on the data every three years starting in 2029.
Sports betting on the rise in Colorado
Colorado’s online sports betting market continued its rapid expansion in 2025, with bettors wagering more than $6 billion statewide, according to data from the Colorado Department of Revenue. That represents a roughly 130% increase from 2020, the first full year after voters approved legal sports gambling. Nearly all wagers are now placed online, reflecting the dominance of mobile betting platforms.
Christopher Schroder, director of the Division of Gaming, said: “Tax revenue is up through the roof. We were looking at record-breaking numbers again this year. We anticipate this continues to go in the right direction, seeing closure at the end of the fiscal year with record-breaking numbers again.”
The surge has delivered millions in tax revenue. Monthly betting totals have regularly topped half a billion dollars, underscoring how firmly sports wagering has taken hold since its launch. Industry analysts attribute the growth to aggressive marketing, ease of access and expanded betting options.
At the same time, public health experts are raising concerns about gambling’s growing reach among young people. Surveys indicate 36% of boys ages 11 to 17 report gambling in the past year, highlighting the activity’s popularity among adolescent males. Researchers warn that early exposure to betting can increase the risk of developing problem gambling behaviors later in life.
The broader landscape of wagering is also evolving, with the rise of online prediction markets that allow users to trade contracts on event outcomes in ways that resemble financial exchanges. Regulators across the country are now weighing how to oversee these emerging platforms while addressing mounting concerns about consumer protections and youth access.
