Colorado Drops Prop Bet Ban From Sports Betting Bill
Jesse M. Cox Published 27/04/2026
A comprehensive sports betting reform bill in Colorado is moving forward to the Senate floor, but not without first undergoing a major haircut. As Senate Bill 131 was approved by the Senate Appropriations Committee, the approval came following a major change to the bill.
A proposal for the complete elimination of all prop wagering in the state was dropped from the bill’s contents. The feeling among members of the committee was that axing all prop bets would create too massive a hit to sports betting revenue and, with it, to the take going to the state via taxes paid by sports betting sites.
Eliminating prop wagers would create a significant financial hit
Senate Bill 131 (SB 131) moved forward to the full Senate floor following a 4-3 vote in favor of the bill from the Senate Appropriations Committee. At the same time, the committee voted 5-2 to remove the prop bet ban from the bill.
Estimates are that the language of the original bill would have reduced revenue going to the Colorado state government from sports betting taxes by $2.4 million annually. Removing the prop betting ban brings the decrease down to $800,000.
Doing some simple math, that means prop betting is generating $1.6 billion in sports betting tax revenue for the state every year.
“It does greatly reduce the fiscal impact,” Senator Matt Ball, one of the bill’s co-sponsors, told the committee about the removal of the prop betting ban.
Ball promised to revisit the prop bet ban at a later date. The Senator suggested that state lawmakers need to have a “more holistic conversation” about how prop and parlay wagering impacts bettors.
Prop bets are wagers on outcomes within the game. These can include rushing yards by an NFL running back or points scored by an NBA player.
Prop betting on college sports is already prohibited in Colorado.
Proponents of the prop betting ban believe that they can trigger compulsive gambling habits
Ball believes that prop betting and parlay plays create the sort of environment that can lead a bettor to become a compulsive gambler. He thinks that these types of wagers, with their perennial readiness, is like “having slot machines in your pocket.
“That perpetual availability is something that is very addictive,” Ball told The Denver Post.
Joshua Ewing, executive director of Healthier Colorado, agreed with Ball’s assessment that prop bets can easily become addictive for bettors. He would’ve preferred the prop bet ban remain in place, but still believes that SB 131 addresses some problem gambling issues.
“We wanted to be as strong as possible, but we still think the bill would be one of the strongest in the nation,” Ewing said.
These aspects of Senate Bill 131 will continue to go forward
Moving ahead, SB 131 still features a number of changes to Colorado sports betting. The bill prohibits bettors from using credit cards on sports betting apps. Limits would be placed on when sportsbooks can advertise on TV. Push notifications from sportsbooks to customers would also be banned.
Sports betting sites would also be required to provide customer data so the state can determine metrics such as gambler demographics.
If the Senate approves the bill, it must also pass through the House before the current session of the state legislature ends on May 13.
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