Colorado has approved one of the most significant sports betting reforms after legalizing it in 2019. Colorado introduces new restrictions: how residents should fund and manage their wagers.
Governor Jared Polis has signed the legislation into law and banned the use of credit cards for sports betting, and has limited betting to 6 deposits within 24 hours. Its aim is to reduce gambling-related harm and prevent users from losing too much money.
The final version of the bill is less broad than it was originally proposed. Lawmakers have removed plans to ban sports betting television ads, and come prop bets. There were concerns raised about enforcement challenges and the side effects of tax revenue.
Colorado is one of the first states that embraces online sports betting, as the voters have approved legalization in 2019. The market has grown rapidly: more than $6.5 billion in 2025.
Supporters note that the new restrictions will increase the risk of gambling addiction. One of the bill’s sponsors, State Senator Matt Ball, said that reforms were needed as there is a growing influence of algorithms, and advertising on vulnurable group of people.
Research cited during the legislative process claims that online sports betting is linked with higher rates of financial distress and increased bankruptcy.
Sports betting activity is constantly growing, and sportsbook revenue is expanding.
The iGaming industry has made $44 million in tax revenue for Colorado in 2025. Much of it was directed toward water conservation plans. Observers note the state’s reliance on those gambling taxes.
Moreover, Colorado will also start collecting and publishing more information on the impact of those sports betting sites in the coming years, with a clearer picture on how the industry is affecting users.
