Colorado Sports Betting Regulation Guide for 2024: Regulations, Laws, and More

Colorado's sports betting industry has been steadily evolving, creating a robust framework for both in-person and online betting enthusiasts. This guide provides a comprehensive overview of the current regulations, legislative developments, responsible gambling initiatives, and key players in the Colorado sports betting market.

Colorado Sports Betting, A Brief Timeline

Colorado's journey into sports betting began in 2019, following the US Supreme Court's decision to overturn the Professional and Amateur Sports Protection Act (PASPA). This paved the way for individual states to legalize and regulate sports betting. In November 2019, Colorado voters approved Proposition DD, legalizing sports betting in the state. The first legal bets were placed in May 2020, marking a significant milestone in Colorado's sports betting timeline.

What's happening in Colorado Sports Betting Right Now

Colorado's sports betting market continues to expand, attracting new operators and partnerships. As of April 2024, 20 online sports betting sites operate in the state, more than any other U.S. state, and several retail sportsbooks are available at various locations. The industry's growth has been fueled by a mix of new entrants and strategic alliances between casinos and sportsbooks, offering a diverse range of betting options.

Updates and Amendments to Colorado Betting Laws in 2024

2024 has brought several key changes to the state's legal framework. Here are some notable developments:

1. New Licensing Rules: The Colorado Division of Gaming (CDG) has revised its licensing requirements for sports betting operators. Applicants for a master license must undergo a more comprehensive financial assessment, including detailed reviews of funding sources and business models.
2. Taxation Policy Adjustments: In response to the growing sports betting revenue, Colorado has updated its taxation policies. The state's 10% tax on gross gaming revenue (GGR) remains in place, but new reporting requirements mandate more frequent and detailed revenue reports from operators.
3. Advertising and Promotions Regulations: To address concerns about misleading promotions, the CDG has introduced stricter advertising standards for sports betting operators. These include:
   1. Transparency in Promotions: Operators must clearly communicate the terms and conditions of any bonuses or promotional offers, ensuring bettors understand the requirements for claiming and withdrawing bonus funds.
   2. Responsible Gambling Messaging: Advertising materials must include responsible gambling messages and links to resources, reinforcing Colorado's commitment to safe betting practices.
4. Expansion of Retail Betting: Several new retail sportsbooks have opened in Colorado, expanding the state's land-based sports betting options. This includes new venues partnering with licensed casinos, such as SuperBook at The Lodge Casino and Elite Sportsbook at Red Dolly Casino.
5. Responsible Gambling Initiatives: In line with the state's commitment to responsible gambling, 2024 has seen increased funding for programs aimed at preventing gambling addiction. The CDG has allocated additional resources to support initiatives such as:
   1. Hotlines and Support Groups: Expanded availability of helplines and support services for individuals experiencing gambling-related issues.
   2. Public Awareness Campaigns: Initiatives to raise awareness about responsible gambling practices and available resources for bettors.

The legal framework for sports betting in Colorado was established through a combination of legislative action and regulatory oversight:

1. Proposition DD: In November 2019, Proposition DD was passed by Colorado voters, legalizing sports betting in the state. The passage of Proposition DD also led to the Colorado General Assembly enacting HB19-1327, further defining the state's legal framework for sports betting.
2. Regulatory Oversight: The Colorado Limited Gaming Control Commission (CLGCC) and the CDG are tasked with overseeing the state's sports betting industry.
3. Operating Fees: On April 16, 2020, the CLGCC approved the following fees:
   1. Internet Sports Betting Operator Licensee or Master Licensee conducting internet sports betting: $54,000
   2. Sports Betting Operator Licensee or Master Licensee conducting retail sports betting: $12,500
4. Stakeholder Engagement: The CDG has engaged with industry stakeholders and reviewed best practices from other states, incorporating this knowledge into Colorado's regulatory framework. This has led to the implementation of comprehensive rules and regulations that balance industry growth with responsible gambling practices.
5. Regulatory Resources: For those interested in Colorado's sports betting regulations, the CDG provides the following resources:
   1. Sports Betting License Fees Analysis: A detailed analysis of licensing fees for sports betting operators.
   2. Colorado General Assembly HB19-1327: The legislative bill that established Colorado's sports betting framework.
   3. Sports Betting Rules: A comprehensive set of rules and regulations governing the sports betting industry in Colorado.
   4. Combined Sports Betting Rules and Regulations: Updated rules effective August 10, 2022, consolidating and clarifying Colorado's sports betting regulations.

Additionally, the CDG has conducted stakeholder working groups to draft and revise rules, covering topics such as compliance, technology, integrity, information, and responsible gambling

Colorado has a variety of online and mobile sportsbooks, which offer a comprehensive range of betting options:

Land-Based Colorado Sportsbooks

In-person sports wagers can be placed at several retail locations in Colorado. Here are some of the options:

These retail sportsbooks, along with Colorado's online sportsbooks, contribute to the state's vibrant and dynamic sports betting market. The industry is evolving rapidly, offering diverse betting opportunities to Colorado sports bettors.

Colorado's sports betting regulations reflect a balanced and comprehensive approach, covering both retail and online sports betting. Here's how they compare to regulations in other key states:

Legalization and Market Access:

Taxation:

Licensing Requirements:

Mobile and Online Betting:

Market Diversity:

Consumer Protection:

Colorado's betting industry has experienced significant growth, fueled by ongoing regulatory changes. These changes impact both retail betting and Colorado online sports betting, creating a dynamic market for bettors and operators alike. Here's how recent regulatory changes have influenced Colorado's betting industry:

1. Market Growth: The legalization of sports betting in Colorado through Proposition DD led to a diverse and thriving market:
   1. Online Sportsbooks: Colorado sportsbooks have expanded both online and retail, offering a variety of options for sports bettors. This growth also drives competition among sportsbooks, resulting in competitive odds and bonuses.
   2. Retail Sports Betting: The regulatory framework has encouraged the expansion of retail sportsbooks through partnerships with licensed casinos. New betting venues at casinos like the Lodge Casino and Lady Luck Casino enhance Colorado's retail betting market.
2. Taxation and Revenue: Colorado's tax policies for sports betting create a stable funding stream:
   1. Tax Revenue: The 10% tax on gross gaming revenue (GGR) contributes significantly to Colorado's sports betting market, with funds allocated to various state programs. This revenue stream also supports investments in responsible gambling initiatives and public awareness campaigns.
   2. Free Bet Deductions: Colorado sportsbooks can deduct a portion of free bets, payments to players, and the federal excise tax on sports bets, creating a balanced approach to taxation.
3. Responsible Gambling: Colorado's regulatory framework prioritizes responsible gambling initiatives, promoting a balanced and safe betting environment:
   1. Self-Exclusion and Deposit Limits: Colorado sportsbooks offer self-exclusion programs and deposit limits, helping bettors manage their gambling habits. These measures are available both online and at retail sportsbooks, ensuring comprehensive support.
   2. Public Awareness Campaigns: Regulatory changes have increased funding for responsible gambling initiatives, including campaigns that raise awareness about problem gambling and available resources.
4. Mobile and Online Betting: Colorado's regulatory changes enable casinos to offer online sports betting through individually branded platforms, fostering competition and diversity:
   1. Sports Betting Apps: The rise of Colorado sports betting apps expands the market's reach, allowing bettors to wager from anywhere in the state. This increases access to online sportsbooks, contributing to the market's dynamic nature.
   2. Partnerships: Casinos partner with online sportsbooks, resulting in a diverse range of betting platforms. This includes notable operators like FanDuel Sportsbook, Caesars Sportsbook, and SI Sportsbook, offering many options for Colorado bettors.
5. Industry Compliance: The CDG and the CLGCC monitor the betting industry to ensure compliance:
   1. Advertising Standards: Colorado's regulatory framework prohibits misleading or predatory promotions, ensuring transparent advertising materials. This contributes to a balanced market, protecting Colorado bettors.
   2. Consumer Protection: The CDG and CLGCC enforce compliance standards, including penalties for non-compliance, maintaining the integrity of Colorado's industry.

Colorado's sports betting regulations have received feedback from both the public and industry stakeholders, shaping a balanced framework for both retail and online sports betting. Here's an overview of key perspectives:

• Public Opinion: Colorado's betting industry has strong public support, reflecting a positive response to the legalization of sports betting.
• Revenue Allocation: Research by the CDG indicates that Colorado residents support the allocation of tax revenue from sports betting to state programs, including water projects, community services, and responsible gambling initiatives.
• Stakeholder Perspectives: Industry stakeholders view Colorado's regulatory framework as comprehensive and balanced, benefiting both bettors and operators:
  • Regulatory Oversight: Stakeholders value the oversight provided by the CLGCC and CDG, ensuring compliance across Colorado sportsbooks and promoting responsible gambling initiatives.
  • Compliance and Enforcement: Stakeholders recognize the importance of compliance standards and enforcement measures, ensuring the integrity of Colorado's betting industry.
  • Market Growth: Stakeholders acknowledge the positive impact of Colorado's regulatory framework on the sports betting market, contributing to a dynamic industry with diverse betting options.
  • Responsible Gambling: The audit and research also highlight stakeholders' support for Colorado's responsible gambling initiatives, including self-exclusion programs, deposit limits, and public awareness campaigns.

Colorado's sports wagering industry has seen significant growth, fueled by strategic partnerships between sportsbooks, casinos, and other stakeholders. These collaborations have contributed to the market's diversity and competitiveness, offering a variety of options for bettors. Here are some key partnerships shaping the state's sports betting scene:

Colorado Sportsbooks and Casinos:

1. FanDuel Sportsbook and Bally's Black Hawk: FanDuel has partnered with Bally's Black Hawk Casino to offer both retail and online sports betting.
2. BetMGM Sportsbook and Midnight Rose Casino: BetMGM's collaboration with Midnight Rose Casino has enhanced the state's retail betting market, offering bettors a physical venue to place wagers.
3. BetMonarch Sportsbook and Monarch Casino: BetMonarch's partnership with Monarch Casino offers bettors a locally-owned option for both retail and online sports betting.

Colorado Online Sportsbooks:

1. DraftKings Sportsbok and Bally's Black Hawk: DraftKings' collaboration with Bally's Black Hawk has led to a strong online sports betting presence in Colorado.
2. Caesars Sportsbook and Lady Luck Casino: Caesars Sportsbook has partnered with Lady Luck Casino, providing both retail and online sports betting options.
3. BetRivers Sportsbook and McGills Hotel and Casino: BetRivers' partnership with McGills Hotel and Casino provides both a retail betting venue and an online platform.

Sponsorships and Promotions:

1. SI Sportsbook: SI Sportsbook's collaboration with various sports teams and organizations offers promotional opportunities for sports bettors.
2. Fanatics Sportsbook and Colorado Sports Teams: Fanatics has partnered with several Colorado sports teams, including the Denver Nuggets and Colorado Avalanche, offering live streaming and promotional opportunities for fans.

Market Impact:

1. Diversity: These partnerships have diversified Colorado's sports betting market, offering a variety of platforms and venues for both retail and online sports betting.
2. Competition: Strategic collaborations have fueled competition among sportsbooks, resulting in competitive odds, bonuses, and promotions for bettors.
3. Industry Growth: The partnerships have contributed to the overall growth of Colorado's sports wagering industry, creating a dynamic and thriving market for both operators and bettors.

Colorado's professional sports teams play a significant role in the state's sports wagering industry, providing numerous opportunities for both retail and online users to bet on sports:

• Denver Broncos: The Denver Broncos offer various betting markets, including point spreads, moneylines, and prop bets for their NFL games. Sports bettors can place wagers on Denver Broncos markets through Colorado sports betting apps and retail sportsbooks.
• Colorado Rockies: The Colorado Rockies provide betting opportunities across their MLB games, including run lines, totals, and futures markets. Bettors can access Colorado Rockies markets through online sportsbooks or by visiting Colorado's retail venues.
• Denver Nuggets: The Denver Nuggets contribute to the industry with markets for NBA games, including spreads, totals, and player props. Bettors can access these markets through Colorado's sportsbooks and sports betting apps.
• Colorado Avalanche: The Colorado Avalanche offer betting options across NHL games, including puck lines, over/unders, and futures markets. Bettors can engage with these markets through Colorado online sports betting platforms or retail sportsbooks.