Colorado lawmakers have approved a sweeping responsible gambling bill that could make the state the first in the US to ban sportsbooks from sending betting-related push notifications and text messages to customers.
Senate Bill 131 cleared the state legislature on 13 May after the Senate voted 20-15 to approve amendments added by the House. The measure now heads to Governor Jared Polis for final approval.
If signed into law, the bill would introduce several new restrictions for licensed sportsbooks in Colorado. Operators would be prohibited from sending promotional push notifications or text messages encouraging bets or deposits. The legislation would also cap the number of daily deposits players can make, ban credit card gambling deposits, limit advertising aimed at younger audiences and require operators to share anonymised customer data with regulators.
Supporters of the bill say the measures are necessary as online sports betting continues to expand rapidly across the state. Senator Matt Ball, one of the bill’s main sponsors, said the legislation aims to address the public health risks linked to constant digital engagement from sportsbooks.
Ball dismissed industry claims that tighter restrictions could push bettors toward offshore or unregulated operators. He argued there is no evidence that customers would abandon legal sportsbooks simply because promotional notifications are removed.
Industry groups have strongly criticised the proposal. The Sports Betting Alliance, whose members include major operators such as FanDuel, DraftKings, BetMGM, Fanatics and bet365, warned that the changes could make regulated sportsbooks less competitive.
The alliance argued that stricter rules may encourage some players to move to offshore betting platforms that operate outside US consumer protection laws and do not contribute tax revenue to states.
The final version of the bill is less restrictive than earlier drafts. Lawmakers removed proposals that would have banned prop bets, limited sportsbook advertising during broadcasts and restricted operators from limiting successful bettors.
Responsible gambling groups have largely backed the legislation. The Problem Gambling Coalition of Colorado said it supports measures that reduce exposure to aggressive gambling marketing, especially for vulnerable players.
Executive director Jamie Glick noted that push notifications, bonus offers and VIP programs can encourage impulsive gambling behaviour. However, he also said an opt-in system for promotional messages could have been a more balanced solution than a complete ban.
The debate in Colorado comes as other US states consider similar action. Lawmakers in New York are currently reviewing legislation targeting gambling push notifications, while a comparable proposal failed to gain support in Minnesota last year.