In a significant legislative update, the Colorado Senate has passed an amended version of Senate Bill 117.
While the bill successfully blocks the use of credit cards for lottery purchases, it famously retreated from a proposed ban on digital “slot-style” lottery games.
The Credit Card Ban
Lawmakers voted 22-13 to reverse a recent policy change by the Colorado Lottery Commission that had authorized credit card payments for tickets. Senators argued the Commission acted without proper consultation and that removing credit cards was a necessary step to curb impulsive gambling fueled by debt.
The Constitutional Conflict
Initial drafts of the bill were far more restrictive, aiming to shut down Colorado’s entire iLottery industry by banning the online sale of scratch games and slot-style “e-instants.” However, Senator Jeff Bridges explained that legal reviews showed such a ban would likely violate the Colorado Constitution.
Senator Jeff Bridges provided a frank assessment of the digital landscape:
“I have said from the moment I found out about the rules that the Division was considering that they were putting casinos in our pockets. They were putting slot machines on our phones. Turns out, the Constitution of the State of Colorado agrees that what the Division wants to do is put a slot machine in everyone’s pocket in the state. And the Constitution of Colorado says that cannot be done without a vote of the people to change the Colorado Constitution.”
A Potential Veto Looms
Despite the Senate’s approval, the bill’s future is uncertain. The Colorado Lottery Commission remains opposed, stating that modernization is essential to meet funding requirements for state beneficiaries. Furthermore, reports suggest Governor Jared Polis supports the commission’s original pro-credit card stance, indicating a high probability of a gubernatorial veto even if the bill clears the House.
Meanwhile, a separate bill (SB 131) targeting online sportsbooks is also gaining momentum in the Colorado Senate. This legislation seeks to ban push notifications that encourage betting and remove promotional terms like “bonus bet,” though a proposed ban on prop betting was recently stripped from the text due to revenue concerns.
