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Colorado’s push to restrict addictive sports wagers collapsed last week as lawmakers removed a proposed ban on “prop bets” from a broader gambling reform bill, citing concerns over lost tax revenue.
The shift occurred Tuesday, April 21, when the Senate Appropriations Committee voted 5-2 to strip the ban from Senate Bill 131. The bill’s primary sponsor, Sen. Matt Ball, D-Denver, accepted the change—introduced by Sen. Chris Kolker—to protect the remainder of the legislation.
The rise and fall of the prop bet ban
Proposition bets, or “prop bets,” allow gamblers to wager on specific moments within a game, such as a running back’s total yardage, rather than the final score. While popular, the “rapid-fire” nature of these bets is linked by researchers to compulsive gambling. These concerns were echoed by the NCAA in January, when the organization called for a national ban to protect student-athletes and game integrity.
Budget gaps vs. consumer protection
Despite these risks, financial and political pressures proved more persuasive in the statehouse. Colorado is facing a tight budget year, and sports betting is a vital revenue stream; the Colorado Division of Gaming reported total wagers exceeded $6.5 billion in 2025.
Fiscal estimates suggested that banning prop bets would slash state tax revenue by $2.4 million—money currently earmarked for water infrastructure. Ball was candid about the role of the betting industry in highlighting these costs, noting that lawmakers were “drastically outspent” by industry lobbyists.
“That definitely has an impact on bills, this one included,” Ball said, according to news by Axios Denver. By removing the ban, the projected cost to the state drops to just $800,000.
New restrictions for Colorado sportsbooks
The legislation now heads to the full Senate with several consumer protections still intact. If passed, sportsbooks would be prohibited from:
- Aggressive Marketing: Terms like “bonus bet” or “no sweat” would be banned, and companies could no longer use push notifications or texts to solicit bets.
- Daytime Advertising: A near-total blackout would bar sports betting ads between 8 a.m. and 10 p.m. and during live sports broadcasts.
- Excessive Funding: Bettors would be capped at five deposits per 24-hour window and barred from using credit cards.
The Colorado Gaming Control Commission would gain the authority to levy fines of up to $25,000 for violations.
The road to the governor’s desk
The bill must clear the Senate and House before the session adjourns next month. While the prop bet debate is settled for now, Ball warned that industry pressure may next target the proposed advertising restrictions before the bill reaches the governor’s desk.
