Colorado is stripping out language that allowed credit-card funding for gambling accounts, and the change takes effect on Aug. 12.
According to SCCG Management’s report of the emergency rulemaking session, Colorado Division of Gaming Deputy Director William Hiserodt led the meeting and regulators described it as a “courtesy” to operators ahead of the deadline.
The move aligns the rules with SB 26-131. The bill bars internet sports betting operators from accepting deposits by credit card in connection with sports bets, makes a violation a class 2 misdemeanor and allows the commission to levy a penalty of up to $25,000.
Because the General Assembly adjourned on May 13 and the law has no safety clause, the August effective date follows automatically. The article also said SB 26-131 bans push notifications and ads that target underage users.
The hardest issue is what counts as funding “indirectly.” Fanatics Betting & Gaming State Compliance Manager Megan Otieno asked for clarification, and Division of Gaming sports betting program manager Mia Tsuchimoto said determining how a gift card was originally purchased is tricky.
Tsuchimoto said payment processors could identify the original funding source and operators would have to work with suppliers. The article warned that enforcement could become inconsistent if reliable processor-level data are unavailable.
Colorado’s move sits inside a broader tightening trend. The article said at least a dozen U.S. jurisdictions have banned credit-card funding for gambling accounts, and that most major operators already no longer allow it.
Fanatics Sportsbook has not allowed credit-card funding since its launch in 2021, while DraftKings and FanDuel later banned it. The piece also pointed to Massachusetts, where DraftKings was fined after bettors used funds put into their account via credit cards in other states.
The article said traditional rulemaking later this year will be critical because it offers an opportunity to refine the “indirect” standard with industry input.
