Colorado Lawmakers Consider New Restrictions on Gambling Activities
Background on Colorado’s Gambling Landscape
Since 2019, Colorado has permitted online sports betting, enabling enthusiasts to place bets conveniently from home or on the go. Alongside this, the Colorado Lottery has recently embraced digital platforms in response to the rising interest in lottery courier services, which have stirred some controversy. Despite the growth and modernization of gambling options, state lawmakers are now examining measures to impose new boundaries on the expanding gaming sector due to concerns about player safety and gambling addiction.
Potential Ban on Player Prop Bets
The Colorado Senate recently approved two legislative proposals aimed at tightening controls over the state’s gambling and lottery sectors. One bill targets advertising restrictions for sports betting, proposes banning player prop bets, and suggests setting limits on player deposits.
The bill, identified as Senate Bill 131, aims to curb the influence of sports betting through several initiatives including limiting TV advertisements, banning prop bets, and introducing deposit limits to safeguard players.
Player prop bets have attracted criticism because they have been linked to incidents of harassment against athletes motivated by betting interests. The NCAA has advocated for banning prop bets on college athletes, citing the psychological harm and undue stress these bets place on younger, student athletes.
Implementing deposit limits is seen as a critical strategy to reduce addictive behaviors by preventing excessive chasing of losses. Senator Matt Ball highlighted that gambling addiction is unique in that those affected often believe increasing their betting will resolve their problems. While responsible gambling is possible, he stressed the importance of regulations to protect vulnerable players from harm.
Opposition to the bill came from major online betting operators like DraftKings, which argued that excessive restrictions might drive bettors towards unregulated offshore markets, where risks are higher for consumers. Despite this, Senate Bill 131 advanced through the Senate Finance Committee by a narrow margin.
Proposal to Pause Colorado’s Online Lottery
A separate legislative initiative passed by the Senate Finance Committee would effectively suspend Colorado’s online lottery offerings if enacted. This bill addresses the concern that online lottery games are becoming indistinguishable from traditional gambling products and that allowing players to fund their accounts with credit cards may encourage problematic spending habits.
Senate Bill 117, championed by Senator Jeff Bridges, expresses alarm over the rapid expansion of online lottery gaming. He compared its potential dangers to that of harmful substances and pointed out that the most frequent lottery players tend to belong to lower-income groups, making them particularly susceptible to the negative effects of online gaming.
