The Colorado Division of Gaming has reported a record year in sports betting, with more than $47 million paid in taxes during the 2025-26 fiscal year, and the department recorded $3.5 billion in total sports wagers through July this year.
The arrival of interactive wagering has made it possible to drive historic results for sports betting businesses, as well as the state, but according to safe gambling advocates, this has also come with a worsening financial situation for some.
Colorado’s Sports Betting Handle Fueled by Health of Regulated Market
People in the state have, according to the Focus on the Family issue analyst, experienced lower credit scores, as well as a higher percentage of missed loan payments, and a 1 in 4 chance that a person will also file for bankruptcy. The analyst also noted the similarity between sports betting and prediction markets – a new form of gambling-like products.
Focus on the Family’s Daily Citizen issues analyst Emily Washburn specifically pointed out:
“Prediction markets can operate in any state they want, including states that have voted against legalizing gambling, and people as young as 18 can gamble on prediction markets, whereas on many online sportsbooks you have to be 21.”
The Problem Gambling Coalition of Colorado has also raised issues over the growth of online gambling, with executive director Jamie Glick adding:
“The treatment space can’t keep up, research can’t keep up, and people are being affected every single day. And so that’s part of the reason why I call it a public health issue.”
Sports Betting and Prediction Markets Clash
However, not all fret about the numbers. Sports Betting Alliance president Joe Maloney has seen in the measure an opportunity to strengthen the local market against the charm offensive of the illegal gambling market, which has been put on the back foot in the wake of the mass market legalization in 2019. Maloney added:
“In 2019, Colorado voters chose a regulated market for sports wagering… Coloradans no longer have to rely upon illegal offshore websites or neighborhood bookies… choosing instead the trust and protections of the state’s regulated market operators.”
However, the rising threat of problem gambling has not fallen on deaf ears, with Colorado Governor Jared Polis signing a new betting bill into law in 2026, introducing new restrictions on the wagering sector. The new measures seek to bolster the state’s problem gambling prevention capabilities and ensure that consumers are protected.