Sports Betting Protections

SENATE BILL 26-131

BY SENATOR(S) Ball and Pelton B., Amabile, Bridges, Cutter, Jodeh, Kipp, Coleman; also REPRESENTATIVE(S) Woodrow and Woog, Boesenecker, Brown, Camacho, Carter, Duran, Hamrick, Lindsay, Marshall, Nguyen, Rutinel, Sirota, Smith, Story, Titone.

CONCERNING PROTECTIONS AGAINST ABUSIVE PRACTICES IN SPORTS BETTING, AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 44-30-1501, add (8.7) as follows: 44-30-1501. Definitions - rules. Definitions applicable to this part 15 also appear in section 44-30-103 and article 1 of this title 44. As used in this part 15, unless the context otherwise requires: (8. 7) "PUSH NOTIFICATION" MEANS AN AUTOMATIC ELECTRONIC

Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

MESSAGE, INCLUDING A TEXT MESSAGE, DISPLAYED ON AN ACCOUNT HOLDER'S MOBILE DEVICE WHEN THE USER INTERFACE FOR AN INTERNET SPORTS BETTING OPERATION IS NOT ACTIVELY OPEN OR VISIBLE ON THE MOBILE DEVICE. SECTION 2. In Colorado Revised Statutes, 44-30-1506, amend (5)(a) introductory portion, (5)(c), (5)(d), and (8); and add (5)(a.5) as follows: 44-30-1506. Operations - eligibility to place bets record-keeping- information sharing- internet sports betting operator requirements.

(5) (a) A sports betting operator shall promptly AS SOON AS PRACTICABLE report to the division: (a.5) A SPORTS BETTING OPERATOR SHALL SIMULTANEOUSLY REPORT INFORMATION DESCRIBED IN SUBSECTIONS (5)(a)(II) AND (5)(a)(III) OF THIS SECTION TO THE RELEVANT SPORTS GOVERNING BODY. (c) The division shall given good and sufficient reason, USE REASONABLE EFFORTS TO cooperate with a sports governing body and sports betting operators to ensure the timely, efficient, and accurate sharing of information for the sole purpose of ensuring the integrity of their sport. (d) The division and sports betting operators shall given good and sufficient reason, USE REASONABLE EFFORTS TO cooperate with investigations conducted by sports governing bodies and shall cooperate with law enforcement agencies, including providing or facilitating the provision of account-level betting information and any available audio or video files relating to persons placing bets. (8) (a) (I) An internet sports betting operator shall accept bets only from persons INDIVIDUALS physically located within the state of Colorado. An internet sports betting operator may establish and fund sports wagering accounts electronically through commission-approved mobile applications and digital platforms. (II) AN INTERNET SPORTS BETTING OPERATOR SHALL NOT ACCEPT MORE THAN SIX SEPARATE DEPOSITS FROM AN INDIVIDUAL DURING AGAMING

DAY, WHICH IS A CONTINUOUS TWENTY-FOUR-HOUR PERIOD ESTABLISHED BY AN INTERNET SPORTS BETTING OPERATOR TO RECORD, RECONCILE, OR REPORT GAMING ACTIVITY FOR TAX OR REGULATORY PURPOSES.

(b) AN INTERNET SPORTS BETTING OPERATOR SHALL NOT INITIATE OR SEND MOBILE DEVICE PUSH NOTIFICATIONS, INCLUDING ALERTS, TO ACCOUNT HOLDERS IN THE STATE RELATING TO THE SOLICITATION OF BETS OR DEPOSITS FROM THE INTERNET SPORTS BETTING OPERATOR'S INTERNET SPORTS BETTING PLATFORM.

( C) NOTHING IN THIS SUBSECTION (8) REQUIRES THE COMMISSION TO CREATE, SUBMIT, OR MODIFY A REPORT, DATA SUBMISSION, OR OTHER REPORTING REQUIREMENT.

SECTION 3. In Colorado Revised Statutes, add 44-30-1506.5 and 44-30-1507.5 as follows:

44-30-1506.5. Advertisement prohibitions - definition. (1) (a) As USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "MARKETING AFFILIATE" MEANS A PERSON THAT PROMOTES A SPORTS BETTING OPERATION IN EXCHANGE FOR A COMMISSION OR FEE.

(b) "MARKETING AFFILIATE" DOES NOT INCLUDE A BROADCASTER. (2)

A SPORTS BETTING OPERATION OR THE SPORTS BETTING

OPERATION'S MARKETING AFFILIATES SHALL NOT TARGET PERSONS UNDER TWENTY-ONE YEARS OLD OR CREATE ADVERTISING CONTENT THAT IS CLEARLY MEANT, BECAUSE OF THE CONTENT'S MESSAGE OR GRAPHICS, FOR AN AUDIENCE UNDER TWENTY-ONE YEARS OLD. (3) A SPORTS BETTING OPERATION OR THE SPORTS BETTING OPERATION'S MARKETING AFFILIATES SHALL NOT ADVERTISE ON MEDIA, INCLUDING

BROADCAST,

CABLE,

RADIO,

PRINT,

AND

DIGITAL

COMMUNICATIONS, FOR WHICH THE MAJORITY OF THE DEMOGRAPHIC AUDIENCE IS REASONABLY EXPECTED BY THE SPORTS BETTING OPERATION OR SPORTS BETTING OPERATION'S MARKETING AFFILIATE TO BE UNDER TWENTY-ONE YEARS OLD. THIS SUBSECTION (3) DOES NOT APPLY TO PUBLIC VENUES WHERE THE DEMOGRAPHICS OF ATTENDEES CANNOT BE DETERMINED.

44-30-1507.5. Internet sports betting operations - data submission requirement - report by the division. (1) NO LATER THAN FEBRUARY 1, 2028, AND NO LATER THAN EACH FEBRUARY 1 THEREAFTER, AN INTERNET SPORTS BETTING OPERATOR SHALL PROVIDE TO THE DIVISION ALL TRANSACTIONAL DATA AND METRICS RELATED TO THE INTERNET SPORTS BETTING OPERATOR'S INTERNET SPORTS BETTING OPERATION FOR THE PREVIOUS CALENDAR YEAR. (2) THE DATA AND METRICS PROVIDED PURSUANT TO SUBSECTION ( 1) OF THIS SECTION: (a) SHALL BE REDACTED TO EXCLUDE PERSONALLY IDENTIFIABLE INFORMATION; AND (b) ARE EXEMPT FROM THE "COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE 24. (3)

No LATER THAN JANUARY 1, 2029, AND NO LATER THAN

JANUARY 1 EVERY THREE YEARS THEREAFTER, THE DIVISION SHALL COMPILE THE DATA PROVIDED PURSUANT TO SUBSECTION ( 1) OF THIS SECTION INTO A REPORT ON INTERNET SPORTS BETTING IN THE STA TE AND PUBLISH THE REPORT ON THE DIVISION'S WEBSITE.

SECTION 4. In Colorado Revised Statutes, amend 44-30-1511 as follows:

44-30-1511. Unlawful acts.

In addition to the prohibitions in section 44-30-801, it 1s

unlawful for: any person. (a)

A PERSON to charge, in connection with the placement or

acceptance of a bet, a commission or fee greater than or less than that fixed by the commission; (b) A PERSON to accept a bet by any person under twenty-one years of age, OI OLD; ( c) A PERSON to accept a bet at any place or in any manner other

than a place or manner authorized and specified in a sports betting license; OR

(d) AN INTERNET SPORTS BETTING OPERATOR TO ACCEPT DEPOSITS USING A CREDIT CARD, EITHER DIRECTLY OR INDIRECTLY, INCLUDING THROUGH AN ACCOUNT FUNDED BY A CREDIT CARD, IN CONNECTION WITH THE ACCEPTANCE OF A SPORTS BET. SECTION 5. In Colorado Revised Statutes, 44-30-524, amend

( 1)(b) introductory portion and ( 1)(b )(III) as follows: 44-30-524. penalties.

Suspension or revocation of license - grounds -

( 1) (b) The commission may suspend or revoke a license granted pursuant to this article 30 for a violation by the licensee or an officer, director, agent, member, or employee of the licensee, after notice to the licensee, the opportunity for a hearing, and upon proof by a preponderance of the evidence as determined by the commission. Violations that may warrant license suspension or revocation include violations of this article 30, any rule promulgated ADOPTED by the commission, any provision of article 33 of this title 44, or any rule prnnmlgated ADOPTED by the executive director pursuant to section 44-33-108 (3) or conviction of a crime. In addition to revocation or suspension, or in lieu of revocation or suspension, the commission may impose a reprimand or a monetary penalty not to exceed the following amounts: (Ill) If the licensee is an operator ORAN INTERNET SPORTS BETTING OPERATOR THAT VIOLATES SECTION 44-30-1511 (l)(d), the amount of twenty-five thousand dollars; SECTION 6. In Colorado Revised Statutes, 44-30-1509, amend

(2)(e) as follows: 44-30-1509. Sports betting fund - wagering revenue recipients hold-harmless fund - creation - rules - definitions - repeal.

(2) For fiscal years commencing on or after July 1, 2024, from the money in the sports betting fund, to the extent the unexpended and unencumbered balance in the fund so permits, the state treasurer shall

distribute an amount equal to all revenue of the division annually derived from the regulation of sports betting and fantasy contests, including license fees, fines, and penalties, and the first twenty-nine million dollars annually collected for payment of the sports betting tax as follows: (e) Third, transfer all remaining unexpended and unencumbered money in the fund that is subject to distribution pursuant to this subsection (2) to the water plan implementation cash fund created in section 37-60-123.3, WHICH AMOUNT MUST BE NO LESS THAN THE AMOUNT TRANSFERRED TO THE WATER PLAN IMPLEMENTATION CASH FUND IN THE PREVIOUS STATE FISCAL YEAR.

SECTION 7. In Colorado Revised Statutes, 44-30-1505, amend (7) as follows: 44-30-1505. License classifications - number of licenses designated sports betting operators - qualifications - rules. (7) A sports governing body may petition the commission to restrict, limit, or exclude a cype of wager the outcome of which is solely determined by the actions ofa single player CERTAIN TYPE OF WAGER WITH RESPECT TO SPORTING EVENTS OF THE SPORTS GOVERNING BODY. Upon receiving such a petition, the commission shall review the request in good faith, seek input from the sports betting operators on the petition, and, if the commission deems it appropriate, adopt rules to restrict, limit, or exclude that type of wager.

SECTION 8. Appropriation. For the 2026-27 state fiscal year, $124,623 is appropriated to the department of law. This appropriation is from the legal services cash fund created in section 24-31-108 (4), C.R.S., from revenue received from the department ofrevenue that is continuously appropriated to the department of revenue from the sports betting fund created in section 44-30-1509 (l)(a), C.R.S. The appropriation to the department oflaw is based on an assumption that the department oflaw will require an additional 0.5 FTE. To implement this act, the department oflaw may use this appropriation to provide legal services for the department of revenue. SECTION 9. Act subject to petition - effective date applicability. (1) This act takes effect at 12:01 a.m. on the day following

the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2) This act applies to conduct occurring and agreements entered into on or after the applicable effective date of this act.

Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES

James Rashad Coleman, Sr. PRESIDENT OF THE SENATE

Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES

Esther van Mourik SECRETARY OF THE SENATE

APPROVED on Monday June 1st 2026 at 11:00am (Date and Time)

Jared S. Polis GOVERNOR OF THE STATE OF COLORADO