Colorado Senate Passes Slimmed-Down Sports Betting Bill

It appears Colorado may be making some significant changes to its sports betting market.

The Colorado Senate passed SB 131 by a vote of 20-14 on Tuesday, forwarding it to the House for review. The bill had originally contained proposals to combat problem gambling aggressively, but the Senate stripped most of them. However, the ones that are left would still make some major changes in the state.

The bill is now with the House Finance Committee, with two weeks left in the chamber’s session.

Tax projections led the bill to be stripped down by the Senate

When SB 131 was proposed, it included a wide range of changes to combat problem gambling. That includes a ban on prop bets and severe restrictions on where and when sportsbooks can advertise. It was an aggressive response to the growing epidemic, but the costs proved to be too high for Colorado senators.

According to a Senate-commissioned report, the bill would have resulted in an annual reduction of about $2.5 million in sports betting tax revenue. With the biggest changes now stripped away, that number drops to $800,000. 

Senators acknowledged their support for improved responsible gaming rules, but the money the industry generates funds crucial water projects. With the entire state preparing for a drought and devastating fire season, it simply can’t afford to lose that funding.

Small changes can still have a significant impact

The Colorado bill is not the monster we hoped it would be, but that doesn’t mean it won’t be effective.

After being passed by the Senate, the following proposals remain on the bill:

• Ban on push notifications with bet promotions
• Ban on all credit card deposits
• Limit players to six deposits in 24 hours (rolling)

All three of these changes would have a significant impact on the state’s market. While it would cost around $800,000 annually, the hope is that these rules would help protect bettors from addiction. 

The most intriguing proposal is the limit on deposits. There is an argument that the limit should be lowered, but it does set a hard and fast stopping point for bettors being driven by addiction. You can lose a lot of money by making six deposits in one day, but this rule would ensure that bettors have to stop and cool off. That small time can make a world of difference, leading many to truly see the financial impact gambling has taken on their accounts.

Colorado forced to choose between crises

As we mentioned above, Colorado is coming off one of its driest winters in history, especially for the heavily populated Front Range cities. This puts more pressure on the state to secure clean drinking water as it continues to fight for rights to the Colorado River, which provides much of the West’s drinking water.

The drought is also leaving many Coloradans expecting to see a summer full of fast-spreading wildfires. We have already seen small ones break out, including in Thornton, a large suburb on Denver’s northern border. Firefighters use water from the state’s reservoirs to fight those fires, a move that could quickly exacerbate the drought.

There is language in SB 131 that would require the state to ensure its water projects don’t see any annual decline in funding.

Colorado lawmakers are serious about fighting problem gambling, but it appears they have decided the water shortages are a more pressing concern.