Colorado Bans Credit Card Deposits for Sports Betting Under New Consumer Protection Law

Colorado Governor Jared Polis signed Senate Bill 131 into law this week, banning sports bettors in the state from using credit cards to fund their sportsbook accounts and capping deposits at six per calendar day. The measure also prohibits sportsbooks from sending promotional push notifications or text messages soliciting bets and deposits. The new rules take effect on August 12.

The legislation was sponsored by Sens. Matt Ball (D-Denver) and Byron Pelton (R-Sterling), along with Reps. Steven Woodrow (D-Denver) and Dan Woog (R-Erie). With the governor’s signature, Colorado becomes the first state in the country to simultaneously ban credit card sportsbook deposits, restrict daily deposit volumes, and prohibit betting-related push notification marketing in a single law.

What the Law Does

Senate Bill 131 makes Colorado the tenth state to prohibit the use of credit cards to fund sports betting accounts. DraftKings had already removed the credit card deposit option voluntarily in August 2025, and FanDuel followed in March 2026 ahead of the legislation, meaning the two largest operators in the state had already adapted before the bill became law.

Under the new rules, violating the credit card prohibition constitutes a Class 2 misdemeanor for operators. The Colorado Gaming Control Commission is also empowered to impose fines of up to $25,000 for violations of the deposit restrictions. Bettors, however, face no direct penalties — the compliance burden falls entirely on the sportsbooks themselves.

The deposit limit provision restricts bettors to six separate deposits within any single gaming day. Proponents of the measure framed this restriction as a tool to prevent loss-chasing behavior, noting that a bettor could still deposit a large lump sum and wager freely throughout the day — the cap specifically targets the volume of deposit transactions, not the total amount deposited.

Advertising Restrictions and Industry Pushback

The law also bars sportsbooks from sending push notifications or text messages that solicit bets or deposits, a provision that operators had lobbied against during the legislative session. Industry groups argued that push notifications are a legitimate and widely used marketing channel, but lawmakers ultimately sided with consumer protection advocates who contended that unsolicited betting prompts contribute to problem gambling.

An earlier version of the bill included a ban on proposition bets — wagers on individual player performances or game moments not related to final outcomes — but that provision was removed before final passage. Prop bets remain legal and available across Colorado sports betting platforms.

The credit card deposit ban aligns Colorado with a broader national trend. States including New Jersey, New York, and Massachusetts had previously enacted similar restrictions, citing research suggesting that credit-funded gambling contributes to higher rates of problem gambling compared to deposits drawn from checking accounts or debit cards.

What This Means for Bettors

Colorado bettors who currently use credit cards to fund their sportsbook accounts will need to switch to debit cards, bank transfers, or other accepted payment methods before August 12. Most major sportsbooks operating in the state already accept PayPal, Venmo, and ACH transfers as alternatives.

The six-deposit daily limit is unlikely to affect most casual bettors, who typically make one or two deposits at a time. The provision is primarily aimed at high-frequency deposit behavior, which regulators have linked to impulsive gambling and financial harm. For bettors who manage their bankrolls carefully, the operational impact should be minimal.

Colorado’s new law sets a template that other states with legal sports betting are watching closely. As the industry matures and state legislatures gain more experience regulating online wagering, consumer protection bills similar to SB 131 are likely to appear in additional jurisdictions before the end of the year.