Online wagering has become commonplace across the US. Yet what operators can and can not provide to consumers is often shaped by rules and legislation.
Betting is no longer a case of simply placing a wager for a win or loss. Online facilities allow everything from live in-play betting to unique bet types. Due to this, the industry was valued at around 17.94 billion in 2024, and it continues to grow. Yet states are constantly balancing this taxable revenue with consumer safeguards. It is these legislative changes and rules that shape online wagering, and it is they that decide what can and can not be provided.
Why Operating Rules Matter to Bettors
Sports betting is a dynamic field. It is no longer confined to the realms of bookmakers, who would note down stakes and odds on a piece of paper. Instead, it is rich with added features, bonuses and new innovations. From accumulators to in-play betting and cashback bonuses, when combined, they have all made betting an exciting and thrilling experience.
Yet behind the scenes, what can and can’t be provided is shaped by legislation. Governments and states regulate gambling tightly, and each has different views on how it should operate, both fiscally and with due diligence and responsibility to its patrons. This means that rules governing deposits, account communications, and advertising shape the online wagering experience.
Clear operating requirements matter to both customers and licensed providers. They provide a framework in which transparency and security become paramount, keeping unscrupulous operators at bay and fostering trust in the sector.
Colorado as a Current Policy Example
An example of this shaping can be found in recent activities in Colorado. This June, the governor signed the state’s sports-betting safeguards after bipartisan sponsorship, establishing a new operating framework. This aimed to establish what were deemed ‘common sense guardrails’ to curb impulsive online sports betting and protect from gambling harms. Amongst these were a range of changes that are to be implemented. They included:
- Banning of credit cards for gambling payments
- Limiting individuals’ deposit amounts
- Restriction on advertising
- Compulsory data collection on problem gambling
- Stronger underage gambling protections
- Higher fines for those who breach
Rep. Dan Woog stated that “This law is not about telling Coloradans how to live their lives. It’s about making sure the companies profiting from sports betting in Colorado are held to basic standards – particularly when it comes to protecting kids and the most vulnerable.” Crucially, this will provide a framework for other states to examine broader questions about how online markets are governed.
Deposit Design and Daily Account Use
One of the main changes is that the law now limits online sports bettors to six separate deposits during a gaming day. This is an obvious sign that someone may be unable to contain their gambling, resulting in consistent deposits. This becomes even more apparent if the amounts are of high denominations.
However, it does bring up some issues. Imagine a person who is spending a day at the races, and suddenly decides they want to place bets on other sports as they see fit. These individual credits to an account may be fairly innocuous.
More so, this could change the deposit steps. It may result in people depositing more than they need to, in a bid to ensure they have enough in an account to cover their gambling.
Marketing Boundaries and Account Communications
Another change was that mobile push notifications and SMS messaging are now prohibited in the state, particularly ones that encourage people to place bets and make deposits. This curbs a large proportion of the directing marketing efforts operators can now make.
The issue with this type of messaging is that it goes directly to a person’s device. As these are with people at most times of day, it is almost a direct line to keep consistently reminding them to gamble. By eliminating this, it could shape the frequency and form of account messaging.
Customer-facing marketing practices are those that focus on the needs and preferences of the consumer, instead of just pushing a product. This may now have more of an emphasis on attracting people to the fold. The heightened responsibility placed on licensed providers may result in more tailored products, such as specific bonus offers and retention.
What Market Scale Adds to Debate
Colorado is a good case study, as its market has grown so huge in such a short space of time. With a market so big, it can provide more quality data and insights. Consider that the state only legalized sports betting in 2020. Since then, it has grown to record numbers, with citizens wagering $6.4 billion in the last year alone.
All of this provides a ground on which taxable revenue, which the state has come to rely on, needs to be offset with responsible gambling. Yet they are not the only state, and it is not just confined to the United States. Many European countries are facing similar dilemmas. Yet as these change, we will notice sports betting continues to adapt and grow as time goes on.