Pennsylvania and Colorado Introduce Gambling Reforms
Pennsylvania and Colorado are ramping up gambling reforms with a raft of proposals to protect gamblers.
The gambling reforms largely center around credit card usage and marketing.
Colorado has banned credit cards for all online gambling, while strengthening protections for problem gamblers. However, the new rules won’t come into force until after the World Cup finishes.
At a Glance:
- Colorado has banned credit cards for online gambling
- SB 26-131 received Senate approval and comes into effect on Aug. 12
- Limit on daily deposits among proposed gambling reforms
- Pennsylvania is following suit with copycat proposals
- Colorado and Pennsylvania follow Ohio in gambling reform
Limit on “6 separate deposits” per day
The new gambling reforms, under SB 26-131, are due to come into force in mid-August. That is a month too late if lawmakers wanted to restrict credit card usage during the FIFA World Cup. The month-long soccer tournament takes place from June 11 through July 19.
The bill was introduced back in February, but it has taken months to work its way through the Senate. Gov. Jared Polis has finally approved it.
The key measure is the ban on credit cards for online sportsbooks. That brings Colorado in line with states like Ohio, which banned credit card deposits in February.
The new measures include:
- Complete ban on credit card deposits at online sportsbooks
- Limits on six separate online gambling deposits per person per day
- Prohibiting sports betting marketing from targeting under-21s
- Online sportsbooks to provide annual data to the Colorado Gaming Control Commission
- Operators face a maximum fine of $25,000 per violation
Pennsylvania wants gambling reform, too
1,660 miles away in Pennsylvania, lawmakers want to introduce more controls on how gamblers spend their money.
Jamie Flick (R–Lycoming/Union) and Tarik Khan (D–Philadelphia) have introduced a package of bills to address problem gambling.
Among them is the Pennsylvania Online Consumer Protection Act, as spelled out in a co-sponsorship memo the pair sent out to House members this week.
Like Colorado, the bill limits the number of deposits customers can make at online casinos and gambling sites in 24 hours.
Separately, SB 265 limits credit card usage at any of Pennsylvania’s regulated DFS sites, casinos, and sportsbooks.
Colorado’s sports betting growth spurs reform
Colorado’s sports betting industry is booming, which may be one reason behind its decision to tighten the rules.
The state recorded a monthly record for tax on sports betting receipts in January.
Sportsbooks generated over $5 million in tax revenue for the first time since the state legalized betting in 2020. The previous record was $4.76 million last October.
In addition to funding water projects, Colorado has always pumped a sizeable portion of tax revenue into responsible gaming. The Colorado Limited Gaming Control Commission gave nearly $4 million to responsible gambling projects in February.
