In a significant development for the state’s gambling landscape, a Colorado Senate committee has passed a bill aimed at reversing the Colorado Lottery’s credit card purchase policy. The bill, known as Senate Bill 117, passed with a narrow 5-4 vote on March 9, 2026, and seeks to prohibit lottery ticket sales using anything other than cash or debit cards.

This legislative move comes amid increasing concerns about gambling addiction and the potential financial harm to players. According to problem gambling groups, approximately 14% of lottery players experience gambling-related issues. Senator Judy Amabile expressed her apprehension, stating, “I don’t want us to set up a whole generation of Coloradans who are in desperate financial straits because of this.”

Senate Bill 117 also aims to block the Colorado Lottery from establishing an online app for direct sales of lottery tickets and bans the sale of tickets through couriers. The proposed changes reflect a growing recognition of the need to address gambling addiction, with Senator Jeff Bridges emphasizing that “you shouldn’t be losing money you don’t have.” He further described the addictive nature of gambling, likening it to the algorithms used in sports betting.

The Colorado Lottery, which has a constitutional mandate to return its proceeds to the outdoors, plans to collect player data to monitor spending. Tom Seaver, the lottery’s senior director, noted that the lottery must evolve to capitalize on changing consumer behavior. However, the proposed restrictions could hinder these efforts.

Lottery proceeds contribute significantly to the state’s budget, accounting for 15% of the revenue for Colorado Parks and Wildlife. The potential impact of these legislative changes on revenue generation remains uncertain, particularly as the lottery seeks to adapt to modern consumer preferences.

Mary Szarmach, a representative from the lottery sector, voiced her concerns, stating, “We are not excited to be in competition with the state of Colorado.” This comment underscores the tension between state regulations and the evolving landscape of gambling in the digital age.

As the bill moves forward, the likelihood of a veto from Governor Jared Polis remains unclear. Details remain unconfirmed regarding the exact impact of the proposed changes on gambling addiction and consumer behavior.

The ongoing debate surrounding the online lottery in Colorado reflects broader national discussions about gambling regulation and the need for responsible gaming practices. As lawmakers grapple with these issues, the future of online lottery sales in the state hangs in the balance.

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