Colorado Latest To Ban Credit Card Deposits For Sports Betting

The Centennial State has taken a definitive stance against unchecked online gambling, with Colorado officially banning credit card deposits for online sports betting accounts. The new legislation, signed into law by Governor Jared Polis (D) on June 2 and effective this Wednesday, not only prohibits credit card usage but also introduces critical limits on deposit frequency and advertising practices. This marks Colorado as the latest state to tighten the reins on the rapidly expanding sports betting industry, joining a growing chorus of jurisdictions prioritizing responsible gaming.

The measure, which garnered bipartisan support across both houses of the General Assembly, reflects an increasing concern over the financial implications of easily accessible online wagering. Senator Matt Ball (D), the legislation's sponsor, articulated the core motivation behind the bill, stating, “Online sports betting has placed casinos in the pocket of nearly every Coloradan, with little protections built in for those addicted to gambling or our young people.” He further emphasized that the bill “honors what voters approved in 2019 while making sure that an industry that has grown from $1 billion to more than $6 billion wagered in just a few years isn’t doing so at the cost of our families’ financial security, our kids’ wellbeing, or the integrity of the games we love.”

Under the provisions of SB 26-131, sports betting platform users in Colorado are now expressly forbidden from utilizing credit cards to fund their accounts. This prohibition extends to credit-funded transactions processed through electronic payment systems, closing potential loopholes. Operators found in violation of this new rule face substantial penalties, with fines reaching up to $25,000, underscoring the state's commitment to enforcement.

Colorado's legislative action arrives amidst a national financial backdrop of escalating consumer debt. Recent figures from the Federal Reserve Bank of New York reveal that total U.S. credit card debt soared to $1.26 trillion in the second quarter of 2026, marking a $21 billion increase from the previous quarter. This surge in debt has undoubtedly influenced the policy decisions of states grappling with the societal impact of widespread online betting.

The trend to restrict credit card use in gambling is not isolated to Colorado. Several other states have already implemented similar bans. Maine and Virginia enacted prohibitions earlier this year, while Massachusetts, Iowa, New Hampshire, Oregon, Rhode Island, Tennessee, Connecticut, and Vermont had previously moved to ban credit card deposits. Furthermore, legislative efforts are underway in Ohio and Illinois, with Ohio, New York, New Jersey, and Maryland actively considering similar bans, indicating a broad, national shift in regulatory philosophy.

Beyond the credit card ban, SB 26-131 introduces several other significant changes to Colorado's sports betting landscape. Bettors are now limited to a maximum of six deposits within a single day, a measure aimed at curbing impulsive or excessive spending. The law also restricts operators from employing push notifications or text messages specifically designed to promote betting or solicit deposits, reducing direct marketing pressures on consumers. Furthermore, advertising that targets individuals under 21 or any specific demographic deemed vulnerable is now explicitly prohibited.

These regulatory adjustments come at a time when sports betting has become exceptionally popular in Colorado, demonstrating remarkable growth since its legalization in 2019. A June report from the Colorado Division of Gaming highlighted that Coloradans have wagered over $30.6 billion since legalization, generating gross revenue of $2.33 billion. Notably, the report revealed some surprising betting preferences, with Coloradans wagering $989.2 million on table tennis, surpassing the $958.8 million bet on hockey, despite the state being home to the three-time Stanley Cup champion Avalanche and the successful University of Denver hockey program.

The broader U.S. sports betting market continues its dramatic expansion, with 39 states, Washington D.C., and Puerto Rico now having legalized sports betting since the Supreme Court overturned the federal ban in 2018. The American Gaming Association (AGA) reported in May that commercial sports betting operations in the U.S. generated $16.89 billion in revenue in 2025, a substantial 22.7% increase from 2024. However, the industry faces potential future challenges, including the rise of prediction markets like Kalshi and Polymarket, which are currently embroiled in legal battles with state gaming regulators over their classification and regulatory oversight, suggesting that the regulatory landscape for online wagering remains dynamic and ripe for further evolution.