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Bill

SB 163

Regulation of Gaming & Sports Betting

2026 Regular Session

Consolidates Colorado’s gaming and racing regulation under the Colorado Limited Gaming Control Commission and Division of Gaming, transferring duties and expanding oversight and se

Governor Signed
#gaming #lottery #&racing
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Bill Summary · SB 163

Summary of SB 163 (2026A) — Regulation of Gaming & Sports Betting (Colorado)

Main purpose and intent

  • Reorganize and consolidate Colorado’s gambling and racing regulatory structure.
  • Repeal the Colorado Racing Commission and the Division of Racing Events and transfer their authorities and functions to the Colorado Limited Gaming Control Commission and the Division of Gaming, respectively.
  • Expand and refine licensing, enforcement, and self-exclusion provisions related to gaming and sports betting.
  • Streamline certain operational duties (e.g., delegation of licensing functions and approval of minor wagering modifications) while preserving Commission oversight for new games and types.

Key provisions and changes

Structural and governance changes

  • Repeals:
    • Colorado Racing Commission.
    • Division of Racing Events.
  • Transfers:
    • All rights, powers, and duties of the Colorado Racing Commission to the Colorado Limited Gaming Control Commission.
    • Regulatory activities of the Division of Racing Events to the Division of Gaming (within the Department of Revenue).
  • Colorado Limited Gaming Control Commission (new/sextupled role):
    • Expands from 5 to 7 members.
    • Adds two new members with specified qualifications and public representation goals.
    • Initial appointments for the two new members due by December 1, 2026.
    • Broader political affiliation limit: no more than four of seven members may be from the same party (previously, no more than four of five members from the same party).
    • Expanded eligibility criteria to include racing-industry experience, veterinary background, or management-level business experience, depending on sub-category.
    • Terms: four-year terms; staggered to avoid multiple expirations in the same year; no more than two consecutive terms for any member.
    • Financial disclosures: updated annual requirement for confirmed members (on or before each January 1 during their term).
    • Compensation: up to $1,000 per day plus travel/expenses; maximum annual compensation $10,000.
    • Meetings: monthly minimum; requirements for chair/vice-chair selection; rules on quorum and final determinations.
  • Division of Gaming (Regulatory staff and functions):
    • Investigators and supervisors gain authority to inspect any premises where unlicensed gaming or unlicensed sports betting is suspected.
    • Self-exclusion: extends the self-exclusion program to include individuals who voluntarily exclude themselves from sports betting (in addition to gaming).
    • Optional wagers/minor modifications: the Division Director may approve optional wagers and minor game modifications for commission-approved poker, blackjack, craps, and roulette games; commission must approve any new games or game types.
    • Delegation: executive director may delegate certain non-rule-making and non-licensing functions to a designee (consistent with expanding delegation scope).
    • Clarified “race meet” definition related to racing regulation.

Regulatory and statutory changes

  • Section 44-30-507: Commission may delegate licensing duties to the Division (to accommodate expanded delegation).
  • Section 44-30-204: Investigators and their powers include broader inspection authorities.
  • Section 44-30-203: Director qualifications and powers expanded to allow approving certain wagers/modifications (with Commission oversight for new games).
  • Section 44-32-102 and related racing provisions: redefining terms and roles; transfer of functions for racing to the new regulatory framework.
  • Section 44-32-201 to 44-32-303: Reorganization of racing regulatory framework, including transfer of staff, contracts, and rule authority; transfer-effective date and transitional provisions.
  • Section 44-32-303: Explicit transfer and codification of duties to the Colorado Limited Gaming Control Commission and Division of Gaming; responsibilities include enforcement and operations.

Self-exclusion and privacy

  • Section 44-32-1703: Exclusion program remains in statute with added self-exclusion from sports betting; confidential handling of personal data (Colorado Open Records Act exemptions for self-exclusion data).

Effective date

  • The act becomes effective 90 days after adjournment of the General Assembly (subject to potential referendum petitions). If a petition is filed, the act would take effect only upon voter approval in the November 2026 election.

Who would be affected

  • Colorado Limited Gaming Control Commission: expanded membership, adjusted appointment process, broader delegation authority, and administrative duties.
  • Division of Gaming: expanded enforcement and regulatory responsibilities; new authority to approve minor wager adjustments; expanded self-exclusion scope.
  • Colorado Racing Commission and Division of Racing Events: their duties and functions would transfer to the new regulatory bodies.
  • Gaming industry participants: licensees, operators, and staff would experience procedural shifts (transfers, licensing delegation, and potential changes in game modification processes).
  • Public: potential changes in gaming regulation oversight, and expanded channels for self-exclusion.

Procedural and timeline aspects

  • Appointments: Two new Commission members must be appointed by December 1, 2026.
  • Self-disclosure: Confirmed members must submit updated financial disclosures annually by January 1 during their term.
  • Rulemaking and delegation: The Commission retains authority to approve new games; the Director can approve minor modifications and optional wagers, subject to Commission oversight.
  • Transition: Automatic transfer of Racing Commission powers and Racing Events Division duties to the corresponding Colorado Limited Gaming Control Commission and Division of Gaming; staff transfers to Division of Gaming.
  • Sunset/term: The Racing regulatory provisions are aligned with a broader consolidation, with some sections indicating phased and transitional terms, and potential repeal/use in 2032 references for related structures (per existing sunset-like provisions).

Fiscal note (introduced version): Minimal or no net change in state revenue and expenditures; workload increases expected to be small, primarily due to administrative realignment and minor regulatory actions.

If you’d like, I can provide a section-by-section map showing exact statutory references and how each would change under the bill.

Compiled from official sources — confirm details with the bill’s official record.

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