Colorado sports betting tax revenue hits record $47 million as SB 26-131 tightens funding and marketing rules

Colorado’s regulated sports betting market produced a record US$ 47 million in tax revenue in fiscal year 2025-26, with wagers reaching US$ 3.5 billion through July 2026. For PSPs and operators, the bigger story is that the state has now added deposit limits, a credit-card funding ban, and new marketing restrictions that directly affect acquisition and payment flows.

1. The Colorado Division of Gaming said sports betting tax revenue reached more than US$ 47 million in fiscal year 2025-26, the highest figure recorded in the state. Through July 2026, total wagers stood at US$ 3.5 billion.
2. Senate Bill 26-131 took effect on August 12. It limits bettors to six deposits per 24 hours and bans credit-card funding, which is the kind of change payment teams notice immediately because it narrows how customers can top up accounts.
3. The same law prohibits marketing to people under 21 and bars operators from sending promotional push notifications or text messages that encourage customers to place bets or make deposits. In practice, that means acquisition and retention campaigns now have clearer statutory limits attached to them.
4. Operators must also report transactional data and metrics annually to the Gaming Division within the Department of Revenue starting February 1, 2028. The Gaming Division will publish a public report on the data every three years starting January 1, 2029.
5. The Colorado Gaming Control Commission can impose a maximum penalty of US$ 25,000 per offence. The Problem Gambling Coalition of Colorado says support services are struggling to keep up, with executive director Jamie Glick calling it a public health issue.

For high-risk payment providers, Colorado is a useful reminder that tax performance and regulatory tightening often arrive together. A market can be producing record revenue while, at the same time, operators are being pushed toward tighter deposit controls, fewer funding options, and more constrained promo messaging.