Colorado Becomes Latest State To Tighten Sports Betting Rules
Restrictions on Marketing, Deposit Frequency Included In New Law
The trend toward states banning the use of credit cards for online gaming and sports betting continues this week in Colorado. The state Senate passed the measure earlier this year. The law not only prohibits credit card usage but also limits deposit frequency.
The proposal received bipartisan support in both houses of the General Assembly and was signed into law by Gov. Jared Polis (D) on June 2. The rules went into effect on Wednesday.
Sen. Matt Ball (D) sponsored the legislation and believes the bill will help curb problem gambling in the state.
“Online sports betting has placed casinos in the pocket of nearly every Coloradan, with little protections built in for those addicted to gambling or our young people,” Ball told Colorado Newsline.
“[The bill] honors what voters approved in 2019 while making sure that an industry that has grown from $1 billion to more than $6 billion wagered in just a few years isn’t doing so at the cost of our families’ financial security, our kids’ wellbeing, or the integrity of the games we love.”
Credit-Funding Banned
Under SB 26-131, sports betting platform users can no longer use credit cards to fund accounts. This includes credit-funded transactions via electronic payment systems.
Violations can incur a $25,000 fine for operators.
The move comes as total U.S. credit card debt reached $1.26 trillion in the second quarter of 2026, up $21 billion from the first quarter, according to new numbers released by the Federal Reserve Bank of New York.
Other states have made similar moves in recent years. Maine banned credit card usage earlier this year, and lawmakers in Virginia also prohibited credit cards in July. Massachusetts, Iowa, New Hampshire, Oregon, Rhode Island, Tennessee, Connecticut, and Vermont previously banned credit card deposits.
Ohio lawmakers introduced similar legislation in April and Illinois did the same in October. Ohio, New York, New Jersey, and Maryland are considering credit card bans as well.
The credit card deposit issue is playing out as some researchers and responsible gaming advocates have become concerned with the growing trend in betting among young people.
A study in 2024 detailed that bankruptcies were on the rise in states with legalized online wagering. In response, some universities have even created classes focused on responsible gaming.
Other Issues Addressed In Bill
Beyond that issue, the law includes several other changes to the sports betting landscape in the Centennial State. Bettors will now be limited to six deposits in a single day.
Additionally, the law restricts operators from using push notifications or text messages to promote betting or make a deposit
Advertising that targets those under 21 or any specific demographic is also be banned.
Coloradans Have Wagered Over $30 Billion Since 2019
Sports betting has been particularly popular in Colorado, even wagering on more obscure sports. A report released in June by the Colorado Division of Gaming showed that Coloradans wagered more than $30.6 billion since legalization in 2019, with gross revenue reaching $2.33 billion.
That included $989.2 million on table tennis, more than the $958.8 million bet on hockey. That’s despite Colorado being home to the three-time Stanley Cup champion Avalanche and the University of Denver, winners of the NCAA national championship three of the last five years.
The state also has a vibrant commercial casino landscape, with two tribal operations as well. The American Gaming Association reported that Colorado commercial casino gaming and sports betting revenue in 2025 grew 8.2% to more than $1.7 billion.
Sports Betting Surges Across U.S.
A total of 39 states plus Washington D.C. and Puerto Rico now have legalized sports betting since the Supreme Court overturned the virtual ban on wagering outside Nevada.
The AGA reported in May that total revenue from commercial sports betting operations in the U.S. reached $16.89 billion in 2025, a 22.7% increase from 2024.
The sports betting industry could see revenue declines in the future as prediction markets continue to grow across the country. Their emergence has led to legal battles between state gaming regulators and companies like Kalshi and Polymarket, which argue that their sports event contracts are different from traditional sports betting and regulated solely at the federal level by the Commodity Futures Trading Commission.
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