Colorado Pushes to Limit Sports Betting Deposits, Ban Credit Cards

Summary:

• Colorado could become the first US state to limit daily betting deposits.
• The newly proposed bill would also ban credit card deposits and push notifications from gambling apps.
• Lawmakers say the changes aim to reduce gambling addiction and risky behavior.

Colorado is on the verge of introducing some of the strictest sports betting consumer protections in the United States after lawmakers approved a bill aimed at reducing gambling addiction and sending it to Governor Jared Polis for final consideration.

Limiting the Frequency of Deposits

If signed into law, Senate Bill 131 would turn Colorado into the first state to limit how often people can deposit money into online sports betting accounts in a single day.

The measure, mainly aimed at reducing impulsive behavior and stopping frantic account reloading after losses, also includes a ban on push notifications from betting apps that encourage users to wager or top up their accounts.

Supporters say those alerts often act as triggers that push people back into gambling even after they have already spent significant amounts of money.

Another key provision would prohibit the use of credit cards for deposits on gambling platforms. Lawmakers backing the measure argue this is a necessary safeguard to prevent people from betting with borrowed money. While not all operators currently allow credit card deposits, at least some sportsbooks still do, making the restriction meaningful across the market.

Under the proposal, gamblers would be limited to six deposits per day, although there would be no cap on the amount of each deposit. Sponsors of the bill say research shows frequent depositing is closely linked to problem gambling and higher financial losses.

Senator Matt Ball, one of the bill’s sponsors, said the goal is to introduce friction into the system in order to slow down high-risk behavior. He argued that even small barriers can help reduce harmful patterns, especially among users who chase losses.

Prop Bets and Parlays Could Suffer

As expected, the gambling industry disagrees with the proposal, warning that restrictions could hurt business and limit popular betting features such as prop bets and parlays.

Those wagers, which allow users to bet on individual player performances or combine multiple outcomes, remain a major source of revenue for sportsbooks.

Despite industry pushback, supporters of the bill say it represents an important step toward protecting consumers in a rapidly expanding digital betting market. Brianne Doura Schawohl of the Campaign for Fairer Gambling called the proposal a major advancement in responsible gambling policy.

Governor Polis is expected to review the measure in the coming days.