Colorado Abandons Prop Bet Bill

After letting the sports betting industry run for the better part of three years, Colorado lawmakers have been considering changes to the state's sports betting rules. It's being done to fill some gaps and make residents safer without losing much-needed tax revenue.

When Senate Bill 131 was introduced earlier this year, it had several provisions that the bill sponsor, Sen. Matt Ball, D-Denver, thought were necessary to shore things up. One of his proposed changes was a ban on proposition or prop bets.

By definition, a prop bet is a side bet made on different events within a game or match. It typically involves player performance, team performance, ot the timing of an outcome during the game or match. Such bets have proven to be popular with sports bettors because it gives them other ways to create a betting interest in a game. Such wagers can also be made in rapid-fire succession while a game is in process.

The move to ban prop bets was prompted largely by the NCAA, a group that has been concerned that such wagers could create the possibility of "game fixing."

Pulling the Plug on the Ban

After SB 131 was released, there was immediate outcry from bookmakers and sports bettors regarding the top bet ban. There were also concerns expressed in the House and Senate because of the inevitable loss of tax revenue that would follow the ban. Today, Colorado, like so many other states, is facing a bit of a budget crisis. With sports betting being a vital revenue stream, the ban was an immediate no-go with many lawmakers.

Note: Fiscal estimates from industry experts suggested that the prop bet ban would slash tax revenue by as much as $2.4 million.

When it became clear that the votes to pass SB 131 were in jeopardy because of the ban, Sen. Chris Kolker proposed the removal of the ban, and Ball accepted.

The Remaining Legislation

With the prop bet ban removed, the remaining bill still has these three key components:

1. Banning aggressive marketing techniques - a focus on advertising that offers a bonus of free bets when making an initial deposit. This would include advertising done during game broadcasts or in and around sports facilities.

2. Daytime advertising ban - A near-total blackout that would ban sports betting ads displayed between the hours of 8 a.m. and 10 p.m., daily.

3. Excessive betting account funding - bettors would only be permitted to make 5 deposits per day (24 hours, and would not be allowed to use credit cards to fund their accounts.

As part of the legislation, the Colorado Gaming Control Commission (CGCC) would be given the authority to levy fines on violators of up to $25,000 for each violation.

As the bill heads to the full Senate for consideration, there is still the possibility that other objections might arise. Eventually, proponents are hopeful that the bill will make it to the desk of the Govenor for his signature.