Are Sweeping Changes Coming to Colorado Online Sports Betting Rules?

If anyone thought that online sports betting regulations in any state would be static and etched in stone, that was a mistaken thought. It has been close to five years since online sports betting went live in Colorado. Given recent developments, it could be the right time for regulatory changes.

By a vote of 5-4, a Colorado Senate committee passed a proposal that would substantially change the rules related to online sports betting. The bill, Senate Bill 26-131, is currently pending in front of the Senate Appropriations Committee. The bill is intended to shield against addiction issues that have been growing. The issue at hand is that opponents of this bill worry that changing the rules could cost the state tax dollars that are needed as a key funding source for the state’s dimishing water supply. The potential drop n revenue is estimated to several million dollars.

Note: The bill is being sponsored by Dylan Roberts and Byron Pelton on the Senate side, and House members Steven Woodrow and Dan Woog.

About the Bill

With SB 26-131, the devil in in the details. There are six main issues that the bill addresses. Here they are.

• Would establish that proposition betting would be banned ***


• Online sportsbooks would no pbe allowed to accept deposits via credit cards


• Customers would be restricted to five deposits in an 24-hour period


• Sportsbook operators would not be allowed to contact customers encourage them to place bets


• All sports betting advertising via TV or radio would be banned from 8 a.m. to 10 p.m. The same ban would be applied during live game broadcasts


• Sports betting operators must submit performance data to the Colorado Division of Gaming
  

*** Proposition bets are defined as "wagers on individual player statistics, penalties, injuries or officiating calls.

The Pop Bet Controvery

Increasingly, the sports betting community is getting concerned about unethical practices in sports. In particular, this bill respresents a desire to stop unethical proactices like point-shaving and play-by-play manipulation. This bill also seeks to discourage college athletes who share injury or disciplinary information with professional bettors.

It's increasingly clear that as the nation fully embraces all aspects of online gambling (casinos, race tracks, sports), there is a louder call for guardrails hat will protect vulnerable gambler. Easy aaccess is a big issue because college students can go to class with "digital casinos" in their pockets.

What's Next?

The current Colorado legislative session is schedule to end in May. If this bill doesn't clear the Senate and House by session's end, sponsors may have to start over next year. To get through this year, the bill will likely have to survive a lot of amendments before it reaches the Governor's desk. With time running out, the odds against passage are starting to dwindle. It's a race against time, and interested parties will be paying close attention to the outcome.