Colorado Advances Ban on Sportsbook Push Notifications

Colorado Legislature Passes SB 26-131 – State Set to Ban Sportsbook Push Notifications and Tighten Responsible Gambling Rules

Key Takeaways

• Colorado lawmakers voted on May 13 to repass SB 26-131 with House amendments; the bill now awaits the governor’s signature.
• The legislation would make Colorado the first US state to ban sportsbook push notifications and text messages used to solicit bets or deposits.
• The bill introduces limits on daily deposits, bans credit card deposits, and requires operators to share anonymized data with regulators.
• Industry representatives warn that stricter rules could push players toward unregulated sportsbooks, while responsible gambling groups support stronger consumer protections.

Colorado Lawmakers Approve Responsible Gambling Bill with Broad Restrictions

Colorado’s legislature has approved Senate Bill 26-131, a bipartisan measure aimed at strengthening consumer protections in the state’s online sports betting market. On May 13, the Senate voted 20-15 to repass the bill after amendments were added in the House. The legislation now awaits the signature of Governor Jared Polis.

If signed into law, SB 26-131 would introduce a series of changes to how licensed sportsbook operators can interact with customers in Colorado. Lawmakers describe the measure as a response to concerns about the rapid expansion of online sports betting and its potential public health effects.

The bill passed in its current form differs from earlier drafts. Previous versions included a ban on certain proposition bets, limits on broadcast advertising windows, and restrictions on sportsbooks limiting winning bettors. Those elements were removed during the legislative process.

Ban on Push Notifications and Text Messages to Solicit Bets

A central provision of SB 26-131 is a blanket ban on operator-initiated push notifications and text messages that encourage users to place bets or make deposits. If enacted, Colorado would become the first US state to implement such a prohibition.

The measure goes beyond an opt-in requirement. Rather than requiring customers to actively consent to marketing communications, the bill prohibits all such push notifications and text messages initiated by operators.

Supporters of the bill argue that constant, personalized digital engagement can make it difficult for individuals experiencing gambling problems to stop betting. They state that reducing direct marketing contact may lower exposure to triggers associated with impulsive behavior.

Industry representatives, however, have raised concerns about the scope of the ban. The Sports Betting Alliance, which includes FanDuel, DraftKings, BetMGM, Fanatics, and bet365, has stated that the restrictions could make the regulated market less competitive. The group argues that adults who currently use licensed sportsbooks may turn to unregulated platforms if their user experience becomes more limited.

Deposit Limits, Credit Card Ban, and Data Sharing Requirements

Beyond marketing restrictions, SB 26-131 introduces additional consumer protection measures. The legislation would limit the number of daily deposits a player can make and prohibit the use of credit cards for funding sportsbook accounts.

The bill also requires operators to share anonymized data with regulators. Lawmakers have framed this as a step toward improved oversight and monitoring of gambling-related harm.

Advertising rules would also be tightened. The measure includes restrictions on advertising considered adjacent to youth audiences, reflecting concerns about exposure to gambling content among minors.

These provisions form part of a broader approach described by sponsors as focused on transparency, informed decision-making, and safeguards for at-risk individuals.

Debate Over Unintended Consequences and Black Market Risks

The discussion surrounding SB 26-131 has centered on whether stricter rules could unintentionally drive some players toward offshore or black-market sportsbooks.

Senator Matt Ball, one of the bill’s primary sponsors, has stated that he does not see evidence supporting claims that users will leave the regulated market due to the removal of push notifications. He has characterized such concerns as coming primarily from industry representatives.

The Sports Betting Alliance, by contrast, has warned that if consumers shift to unregulated markets, the state could lose tax revenue and players could lose access to consumer protections such as age verification and responsible gaming safeguards.

Responsible gambling organizations have taken varied positions on the structure of the marketing restrictions. The Problem Gambling Coalition of Colorado has expressed support for stronger consumer protections and measures to reduce exposure to gambling-related marketing. Its executive director has noted that push notifications, VIP programs, and bonus offers can be particularly problematic for vulnerable individuals.

At the same time, some responsible gambling advocates have indicated that an opt-in model for marketing communications could represent a more balanced approach than a blanket ban. Josh Ercole, executive director of Pennsylvania’s Council on Compulsive Gambling, has stated that responsible gambling policies are rarely straightforward and that overly restrictive measures may increase the likelihood that some users turn to unregulated markets.

Comparison with Developments in Other States

Colorado’s approach is being watched alongside similar discussions elsewhere in the United States. A bill proposing a ban on gambling-related push notifications is moving through the legislative process in New York. In Minnesota, a comparable proposal introduced in 2025 did not gain sufficient support.

If SB 26-131 is signed into law, Colorado would set a precedent as the first state to formally prohibit sportsbook push notifications and text-based solicitations.

For users of regulated sportsbooks, the changes would affect how operators communicate promotional offers and betting prompts. For operators, the legislation would reshape marketing practices and compliance obligations within the state.

Our Assessment

Colorado’s SB 26-131 introduces a comprehensive set of responsible gambling measures, including a first-in-the-nation ban on sportsbook push notifications and text solicitations, limits on daily deposits, a credit card funding ban, and mandatory anonymized data sharing. The bill has passed the legislature and awaits the governor’s decision. Supporters frame the law as a public health measure designed to reduce exposure to gambling triggers, while industry representatives warn of possible shifts toward unregulated markets. The final impact will depend on implementation and enforcement if the bill becomes law.