Colorado Gov. Jared Polis signed Senate Bill 131 into law this week, enacting what supporters describe as a comprehensive consumer protection package for sports bettors in the state. The new law bans the use of credit cards to fund sports betting accounts, caps bettors at six deposits in any single calendar day, and prohibits sportsbooks from sending push notifications or text messages soliciting bets or deposits. The law takes effect on August 12.
The bipartisan legislation was sponsored by Sens. Matt Ball (D-Denver) and Byron Pelton (R-Sterling), along with Reps. Steven Woodrow (D-Denver) and Dan Woog (R-Erie). Colorado becomes the first U.S. state to enact all three consumer protection provisions simultaneously, and the tenth state overall to ban credit card deposits at sportsbooks.
Key Provisions
The credit card deposit ban is the most consequential provision for daily bettors. DraftKings removed credit card deposit functionality from its platform voluntarily in August 2025, and FanDuel followed in March 2026 ahead of the legislation, meaning the two largest operators in Colorado had already adapted. Smaller and newer operators will need to update their payment processing systems before the August 12 effective date.
Violating the credit card prohibition constitutes a Class 2 misdemeanor for operators under the new law. The Colorado Gaming Control Commission can also impose fines of up to $25,000 for violations. Bettors themselves face no direct penalties under the legislation.
The daily deposit cap of six separate transactions per gaming day is designed to curb loss-chasing behavior, particularly the pattern of repeated small deposits after a bettor has lost. Proponents of the measure noted that the cap targets the volume of deposit transactions, not the total amount deposited, and that bettors can still fund their accounts in large lump sums and wager freely throughout the day.
Push Notification Advertising Restrictions
The prohibition on push notifications and text messages soliciting bets drew significant industry pushback during the legislative process. Sportsbook operators argued that push notifications are a standard and legitimate marketing channel used across many consumer industries. Lawmakers ultimately sided with consumer advocates who contended that unsolicited betting prompts on mobile devices contribute to problem gambling, particularly among at-risk populations who may have difficulty resisting direct promotional prompts.
An earlier version of the bill included a ban on proposition bets, but that provision did not survive to final passage. Prop bets remain legal in Colorado across all licensed sportsbooks. The new law also requires operators to annually report data to the Colorado Division of Gaming on their sports betting operations, with the division expected to compile that data into public reports beginning in 2029.
The law aligns Colorado with a broader national trend toward stricter consumer protection requirements in sports betting. States that have enacted similar credit card bans include New Jersey, New York, Massachusetts, and Virginia. For bettors navigating the changing landscape, the key change before August 12 is ensuring a valid debit card, bank transfer, or other accepted payment method is connected to any Colorado sportsbook account currently funded by credit card.
