SB 131

SENATE BILL 26-131
BY SENATOR(S) Ball and Pelton B., Amabile, Bridges, Cutter, Jodeh,
Kipp, Coleman;
also REPRESENTATIVE(S) Woodrow and Woog, Boesenecker, Brown,
Camacho, Carter, Duran, Hamrick, Lindsay, Marshall, Nguyen, Rutinel,
Sirota, Smith, Story, Titone.
CONCERNING PROTECTIONS AGAINST ABUSIVE PRACTICES IN SPORTS
     BETTING, AND, IN CONNECTION THEREWITH, MAKING AN
     APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
        SECTION 1. In Colorado Revised Statutes, 44-30-1501, add (8.7)
as follows:
        44-30-1501. Definitions - rules.
      Definitions applicable to this part 15 also appear in section
44-30-103 and article 1 of this title 44. As used in this part 15, unless the
context otherwise requires:
        (8. 7) "PUSH NOTIFICATION" MEANS AN AUTOMATIC ELECTRONIC
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
MESSAGE, INCLUDING A TEXT MESSAGE, DISPLAYED ON AN ACCOUNT
HOLDER'S MOBILE DEVICE WHEN THE USER INTERFACE FOR AN INTERNET
SPORTS BETTING OPERATION IS NOT ACTIVELY OPEN OR VISIBLE ON THE
MOBILE DEVICE.
       SECTION 2. In Colorado Revised Statutes, 44-30-1506, amend
(5)(a) introductory portion, (5)(c), (5)(d), and (8); and add (5)(a.5) as
follows:
      44-30-1506.    Operations - eligibility to place bets -
record-keeping- information sharing- internet sports betting operator
requirements.
      (5) (a) A sports betting operator shall promptly AS SOON AS
PRACTICABLE report to the division:
      (a.5) A SPORTS BETTING OPERATOR SHALL SIMULTANEOUSLY REPORT
INFORMATION DESCRIBED IN SUBSECTIONS (5)(a)(II) AND (5)(a)(III) OF THIS
SECTION TO THE RELEVANT SPORTS GOVERNING BODY.
       (c) The division shall given good and sufficient reason, USE
REASONABLE EFFORTS TO cooperate with a sports governing body and sports
betting operators to ensure the timely, efficient, and accurate sharing of
information for the sole purpose of ensuring the integrity of their sport.
       (d) The division and sports betting operators shall given good and
sufficient reason, USE REASONABLE EFFORTS TO cooperate with
investigations conducted by sports governing bodies and shall cooperate
with law enforcement agencies, including providing or facilitating the
provision of account-level betting information and any available audio or
video files relating to persons placing bets.
       (8) (a) (I) An internet sports betting operator shall accept bets only
from persons INDIVIDUALS physically located within the state of Colorado.
An internet sports betting operator may establish and fund sports wagering
accounts electronically through commission-approved mobile applications
and digital platforms.
      (II) AN INTERNET SPORTS BETTING OPERATOR SHALL NOT ACCEPT
MORE THAN SIX SEPARATE DEPOSITS FROM AN INDIVIDUAL DURING AGAMING
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DAY, WHICH IS A CONTINUOUS TWENTY-FOUR-HOUR PERIOD ESTABLISHED BY
AN INTERNET SPORTS BETTING OPERATOR TO RECORD, RECONCILE, OR
REPORT GAMING ACTIVITY FOR TAX OR REGULATORY PURPOSES.
      (b) AN INTERNET SPORTS BETTING OPERATOR SHALL NOT INITIATE OR
SEND MOBILE DEVICE PUSH NOTIFICATIONS, INCLUDING ALERTS, TO ACCOUNT
HOLDERS IN THE STATE RELATING TO THE SOLICITATION OF BETS OR
DEPOSITS FROM THE INTERNET SPORTS BETTING OPERATOR'S INTERNET
SPORTS BETTING PLATFORM.
      ( C) NOTHING IN THIS SUBSECTION (8) REQUIRES THE COMMISSION TO
CREATE, SUBMIT, OR MODIFY A REPORT, DATA SUBMISSION, OR OTHER
REPORTING REQUIREMENT.
      SECTION 3. In Colorado Revised Statutes, add 44-30-1506.5 and
44-30-1507.5 as follows:
      44-30-1506.5. Advertisement prohibitions - definition.
      (1) (a) As USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, "MARKETING AFFILIATE" MEANS A PERSON THAT PROMOTES A
SPORTS BETTING OPERATION IN EXCHANGE FOR A COMMISSION OR FEE.
      (b) "MARKETING AFFILIATE" DOES NOT INCLUDE A BROADCASTER.
      (2)   A SPORTS BETTING OPERATION OR THE SPORTS BETTING
OPERATION'S MARKETING AFFILIATES SHALL NOT TARGET PERSONS UNDER
TWENTY-ONE YEARS OLD OR CREATE ADVERTISING CONTENT THAT IS
CLEARLY MEANT, BECAUSE OF THE CONTENT'S MESSAGE OR GRAPHICS, FOR
AN AUDIENCE UNDER TWENTY-ONE YEARS OLD.
     (3) A SPORTS BETTING OPERATION OR THE SPORTS BETTING
OPERATION'S MARKETING AFFILIATES SHALL NOT ADVERTISE ON MEDIA,
INCLUDING     BROADCAST,   CABLE,   RADIO,   PRINT,   AND      DIGITAL
COMMUNICATIONS, FOR WHICH THE MAJORITY OF THE DEMOGRAPHIC
AUDIENCE IS REASONABLY EXPECTED BY THE SPORTS BETTING OPERATION
OR SPORTS BETTING OPERATION'S MARKETING AFFILIATE TO BE UNDER
TWENTY-ONE YEARS OLD. THIS SUBSECTION (3) DOES NOT APPLY TO PUBLIC
VENUES WHERE THE DEMOGRAPHICS OF ATTENDEES CANNOT BE
DETERMINED.
PAGE 3-SENATE BILL 26-131
      44-30-1507.5.  Internet sports betting operations - data
submission requirement - report by the division.
       (1) NO LATER THAN FEBRUARY 1, 2028, AND NO LATER THAN EACH
FEBRUARY 1 THEREAFTER, AN INTERNET SPORTS BETTING OPERATOR SHALL
PROVIDE TO THE DIVISION ALL TRANSACTIONAL DATA AND METRICS RELATED
TO THE INTERNET SPORTS BETTING OPERATOR'S INTERNET SPORTS BETTING
OPERATION FOR THE PREVIOUS CALENDAR YEAR.
       (2) THE DATA AND METRICS PROVIDED PURSUANT TO SUBSECTION ( 1)
OF THIS SECTION:
       (a) SHALL BE REDACTED TO EXCLUDE PERSONALLY IDENTIFIABLE
INFORMATION; AND
       (b) ARE EXEMPT FROM THE "COLORADO OPEN RECORDS ACT", PART
2 OF ARTICLE 72 OF TITLE 24.
       (3)   No LATER THAN JANUARY 1, 2029, AND NO LATER THAN
JANUARY 1 EVERY THREE YEARS THEREAFTER, THE DIVISION SHALL COMPILE
THE DATA PROVIDED PURSUANT TO SUBSECTION ( 1) OF THIS SECTION INTO A
REPORT ON INTERNET SPORTS BETTING IN THE STA TE AND PUBLISH THE
REPORT ON THE DIVISION'S WEBSITE.
       SECTION 4. In Colorado Revised Statutes, amend 44-30-1511 as
follows:
       44-30-1511. Unlawful acts.
       (1)   In addition to the prohibitions in section 44-30-801, it 1s
unlawful for: any person.
       (a)   A PERSON to charge, in connection with the placement or
acceptance of a bet, a commission or fee greater than or less than that fixed
by the commission;
       (b) A PERSON to accept a bet by any person under twenty-one years
of age, OI OLD;
       ( c) A PERSON to accept a bet at any place or in any manner other
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than a place or manner authorized and specified in a sports betting license;
OR
      (d) AN INTERNET SPORTS BETTING OPERATOR TO ACCEPT DEPOSITS
USING A CREDIT CARD, EITHER DIRECTLY OR INDIRECTLY, INCLUDING
THROUGH AN ACCOUNT FUNDED BY A CREDIT CARD, IN CONNECTION WITH
THE ACCEPTANCE OF A SPORTS BET.
       SECTION 5. In Colorado Revised Statutes, 44-30-524, amend
( 1)(b) introductory portion and ( 1)(b )(III) as follows:
       44-30-524.     Suspension or revocation of license - grounds -
penalties.
        ( 1) (b) The commission may suspend or revoke a license granted
pursuant to this article 30 for a violation by the licensee or an officer,
director, agent, member, or employee of the licensee, after notice to the
licensee, the opportunity for a hearing, and upon proof by a preponderance
of the evidence as determined by the commission. Violations that may
warrant license suspension or revocation include violations of this article
30, any rule promulgated ADOPTED by the commission, any provision of
article 33 of this title 44, or any rule prnnmlgated ADOPTED by the executive
director pursuant to section 44-33-108 (3) or conviction of a crime. In
addition to revocation or suspension, or in lieu of revocation or suspension,
the commission may impose a reprimand or a monetary penalty not to
exceed the following amounts:
      (Ill) If the licensee is an operator ORAN INTERNET SPORTS BETTING
OPERATOR THAT VIOLATES SECTION 44-30-1511 (l)(d), the amount of
twenty-five thousand dollars;
       SECTION 6. In Colorado Revised Statutes, 44-30-1509, amend
(2)(e) as follows:
      44-30-1509. Sports betting fund - wagering revenue recipients
hold-harmless fund - creation - rules - definitions - repeal.
      (2) For fiscal years commencing on or after July 1, 2024, from the
money in the sports betting fund, to the extent the unexpended and
unencumbered balance in the fund so permits, the state treasurer shall
PAGE 5-SENATE BILL 26-131
distribute an amount equal to all revenue of the division annually derived
from the regulation of sports betting and fantasy contests, including license
fees, fines, and penalties, and the first twenty-nine million dollars annually
collected for payment of the sports betting tax as follows:
      (e) Third, transfer all remaining unexpended and unencumbered
money in the fund that is subject to distribution pursuant to this subsection
(2) to the water plan implementation cash fund created in section
37-60-123.3, WHICH AMOUNT MUST BE NO LESS THAN THE AMOUNT
TRANSFERRED TO THE WATER PLAN IMPLEMENTATION CASH FUND IN THE
PREVIOUS STATE FISCAL YEAR.
        SECTION 7. In Colorado Revised Statutes, 44-30-1505, amend (7)
as follows:
      44-30-1505. License classifications - number of licenses -
designated sports betting operators - qualifications - rules.
        (7) A sports governing body may petition the commission to restrict,
limit, or exclude a cype of wager the outcome of which is solely determined
by the actions ofa single player CERTAIN TYPE OF WAGER WITH RESPECT TO
SPORTING EVENTS OF THE SPORTS GOVERNING BODY. Upon receiving such
a petition, the commission shall review the request in good faith, seek input
from the sports betting operators on the petition, and, if the commission
deems it appropriate, adopt rules to restrict, limit, or exclude that type of
wager.
       SECTION 8. Appropriation. For the 2026-27 state fiscal year,
$124,623 is appropriated to the department of law. This appropriation is
from the legal services cash fund created in section 24-31-108 (4), C.R.S.,
from revenue received from the department ofrevenue that is continuously
appropriated to the department of revenue from the sports betting fund
created in section 44-30-1509 (l)(a), C.R.S. The appropriation to the
department oflaw is based on an assumption that the department oflaw will
require an additional 0.5 FTE. To implement this act, the department oflaw
may use this appropriation to provide legal services for the department of
revenue.
      SECTION 9. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
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the expiration of the ninety-day period after final adjournment of the
general assembly (August 12, 2026, if adjournment sine die is on May 13,
2026); except that, if a referendum petition is filed pursuant to section 1 (3)
of article V of the state constitution against this act or an item, section, or
part of this act within such period, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
held in November 2026 and, in such case, will take effect on the date of the
official declaration of the vote thereon by the governor.
PAGE 7-SENATE BILL 26-131
       (2) This act applies to conduct occurring and agreements entered
into on or after the applicable effective date of this act.
2:_-e~
James Rashad Coleman, Sr.
PRESIDENT OF  SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
  ther van Mourik
                                       v~~
                                         Vaneeilly
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
       APPROVED OV\ W\OV1~~ :j\ML- \ s+ 2.0~"'1 ~---':       H•. ITOCi\Yh
                          (Date and Time)
                 Jared S.
                 GOVE  S ATE OF COLORADO
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