Colorado Lawmakers Move to Tighten Gambling and Lottery Rules

Colorado is weighing stricter regulations on its rapidly growing gaming and lottery markets as concerns over safer gambling practices mount. Since 2019, the state has allowed online sports betting, giving residents the ability to wager from home or on the go. Meanwhile, the Colorado Lottery has gone digital, partly in response to the rise of lottery courier services—a controversial trend that has drawn both attention and criticism.

Now, Colorado lawmakers are looking to impose limits on both sectors to curb risks associated with problem gambling.

Senate Bill 131 Targets Sports Betting

The Colorado Senate recently passed Senate Bill 131 (SB 131), a measure aimed at restraining the state’s sports betting industry. Key provisions include:

• Limits on TV sports betting ads – aimed at reducing exposure to vulnerable populations.
• Ban on player prop bets – increasingly controversial due to connections with athlete harassment and NCAA concerns about the welfare of student-athletes.
• Deposit limits – designed to prevent compulsive betting and minimize loss-chasing behaviors.

Senator Matt Ball highlighted that gambling addiction is unique in that those affected often believe that betting more is the solution. “While betting can absolutely be done responsibly,” Ball said, “we need measures to protect the most vulnerable.”

However, the bill has faced opposition from major online platforms like DraftKings, which warned that excessive regulation could push players toward offshore markets with little oversight.

Despite these concerns, SB 131 passed the Senate Finance Committee by a narrow vote.

Industry Response and Concerns

Industry voices have warned that these measures, while well-intentioned, could have unintended consequences:

• Overregulation might push players to offshore sites, where safety protections are minimal.
• Companies like IGT and AGS, which provide gaming and lottery systems in Colorado, could see revenue declines if access is restricted.
• The state-run MGCB (Michigan Gaming Control Board equivalent for Colorado) may need to implement additional enforcement measures to oversee compliance.

Online sports betting platforms also point to responsible gambling features, such as self-exclusion and account limits, as effective tools that reduce the need for blanket bans.

If both bills become law, Colorado could become one of the most restrictive states in the U.S. for online gambling and lottery operations. Observers note that while safety concerns are valid, limiting access too drastically may inadvertently drive players to riskier alternatives. As this PokerStars MI review says, careful regulation—rather than outright prohibition—might be the most effective way to balance public safety with consumer choice.

Senate Bill 117 Could End Colorado’s Online Lottery

Just days before SB 131 moved forward, the Senate Finance Committee approved Senate Bill 117 (SB 117), a separate measure that could halt Colorado’s online lottery. Advocates for SB 117 argue that:

• Online lottery games increasingly resemble traditional gambling products.
• The ability to fund accounts with credit cards increases financial risk.
• Lower-income players are disproportionately affected, making online lottery products potentially dangerous.

Senator Jeff Bridges, who sponsored SB 117, compared the proliferation of online lottery gaming to a public health risk, saying it “spreads quickly and harms those most susceptible.”