Lawmakers in Colorado, United States, approved Senate Bill 131 after withdrawing a proposal to ban side bets on college sports. The decision occurred during the review of the text and reduced the initial scope of the measure.
The project, entitled “On Protection Against Abusive Practices in Sports Betting”, now prioritizes consumer protection measures. Among the main points are deposit limits and restrictions on advertising in the sector.
Initially, the text provided for stricter rules for the betting market in Colorado. However, lawmakers tweaked the proposal to balance regulatory oversight and continuity of operations. If it progresses to the next steps, the law must introduce new safeguards without changing operators’ current offers.
Why Colorado lifted its ban on side betting
Side bets involve specific events within a match, such as player performance or spot plays. Unlike traditional bets, they offer results in just a few minutes.
This format has gained popularity in recent years, which has led regulators to analyze possible impacts on user behavior. Officials have raised concerns about the potential for addiction and the rapid pace of these bets.
Despite this, lawmakers decided to lift the ban. Senator Matt Ball highlighted that the measure could reduce state revenue. According to him, the estimated financial impact would fall from US$2.4 million to around US$800,000 after adjustments.
Industry operators also lobbied against the restriction. They argued that the ban would reduce the state’s competitiveness. Furthermore, parliamentarians considered the risk of user migration to international platforms if options were limited in the local market.
Project focuses on financial constraints and advertising
The approved text includes a ban on the use of credit cards in sports betting. The measure seeks to prevent users from betting with borrowed money.
In practice, the rule aims to reduce financial losses and encourage the use of available resources. The expectation indicates a limited impact on revenue, as many operators no longer accept this method.
From a behavioral perspective, the restriction creates additional barriers to impulsive betting. By requiring its own balance, the model encourages more conscious decisions on the part of users.
The project also establishes a limit on deposits. Each user will be able to carry out up to five transactions in 24 hours. This rule encourages greater control over spending and reduces the speed of online betting.
Furthermore, the proposal restricts advertising by sportsbooks. Campaigns are prohibited during the day and at live sporting events. Terms such as “bonuses” and “hassle-free betting” are also no longer permitted.
Rules increase transparency and remain under analysis
The project requires operators to present detailed annual reports. Documents should include data on user behavior, revenue and regulatory compliance.
The measure seeks to provide more complete information to guide future decisions and strengthen supervision of the sector. The text also changes the allocation of tax revenue from sports betting.
Transfers to the state water resources fund now follow a minimum value equivalent to the previous year. Therefore, the objective is to guarantee stability in the financing of infrastructure projects.
After the ban on side bets was lifted, the project advanced in the Senate Budget Committee. Still, the text needs approval in the Senate and the state House.
Finally, if it progresses, it will go to the governor for sanction. Recent changes have increased the feasibility of the proposal, while new amendments may still emerge during the legislative process.
