Ban on prop bets cut from gambling addiction bill
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Colorado lawmakers dropped a proposed ban on highly addictive wagers known as prop bets from a bill intended to address problem sports gambling.
Why it matters: The turnabout came amid heavy lobbying pressure from sports betting companies, the bill sponsor told Axios Denver, and concerns among lawmakers about losing the associated tax revenue in a tight budget year.
What they're saying: The gambling industry has "a lot of money, and we're drastically outspent, and that definitely has an impact on bills, this one included," bill sponsor Rep. Matt Ball (D-Denver) said in an interview.
How it works: A prop bet allows gamblers to make wagers on individual elements of a contest, often in real time, such as a player's performance or the score of the game.
- The fast-paced nature of these micro-bets encourages compulsive, repetitive behavior linked to gambling disorders, studies show.
- Moreover, prop bets are ripe for athlete manipulation. The NCAA issued a call in January to eliminate these wagers because it risked the integrity of the games.
Between the lines: Ball conceded the amendment removing the ban on prop bets from the larger bill after little debate in a committee Tuesday.
- He told colleagues he wanted to preserve the broader elements of the bill, which include prohibiting the use of credit cards for bets and limiting bonus payments.
By the numbers: Sports betting continues to set records in Colorado at more than $6.5 billion in total wagers in 2025, the Colorado Division of Gaming reports.
- A ban on prop bets would have cost the state $2.6 million in revenue — primarily reducing money for water projects.
- With the prop bet provision removed, the bill would only reduce tax revenue by $800,000.
What we're watching: Expect more lobbying pressure to neuter other elements of the sports gambling bill, particularly limits on advertisements.
