Key Moments:
- Colorado regulators fined Fanatics Sportsbook $20,000 for sending promotional messages to a self-excluded VIP player
- Fanatics acknowledged the breach and agreed to settle, promising to audit its self-exclusion procedures
- Recent legislative changes in Colorado now impose stricter regulations on sports betting operators’ marketing and funding practices
Regulatory Breach and Settlement
Fanatics Sportsbook has been ordered to pay a $20,000 penalty following two separate incidents where promotional offers were sent to a player who had self-excluded from all online sportsbooks in Colorado. The Colorado Limited Gaming Control Commission reviewed and confirmed the violations during a meeting on Thursday, August 27, where both parties reached a settlement. Fanatics admitted to breaking state regulations and agreed to pay the fine.
Legislative Context and New Compliance Standards
This enforcement comes amidst sweeping legislative changes in Colorado’s gambling sector. Earlier this year, Governor Jared Polis signed SB26‑131 into law, which introduced a number of restrictions for sportsbook operators. These rules prohibit operators from sending any promotional push notifications or text messages to inactive users, ban credit card deposits, and cap daily deposit numbers at six per bettor. In addition, advertisers may not target people under 21 and must avoid using terms like “bonus bet” or “no sweat” in marketing messages.
| Regulation | Details |
|---|---|
| Push Notifications & Texts | Banned for inactive users |
| Credit Card Funding | Prohibited |
| Daily Deposits | Limit of six per user |
| Advertising Audience | No targeting under 21s |
| Marketing Language | “Bonus bet” and “no sweat” banned |
Details of the Self-Exclusion Incident
An investigation by the Colorado Division of Gaming found that the violations took place in February, when a Fanatics VIP team member contacted a player who had placed himself on the state’s exclusion list for five years. The first promotional text was sent on February 1, and though Fanatics identified the incident and provided its staff with training materials three days later, a second message was sent on February 17. The commission noted this was in direct conflict with the company’s responsible gaming strategy, which states it “will not intentionally market to any known Self‑Excluded individuals.”
Enforcement Actions and Industry Implications
Following the settlement, Fanatics agreed to strengthen VIP staff training around regulatory and responsible gaming compliance, and will provide proof of these efforts. In addition to the financial penalty, Fanatics must audit its own self-exclusion list for possible breaches between January 2024 and March 2026 and submit a detailed report to the Division of Gaming.
Colorado’s self-exclusion scheme allows individuals to block themselves from online betting for defined periods, mandating operators to cut off all forms of contact. Current figures show more than 1,200 registered users statewide. Commissioners emphasized that all licensees must follow the rules, referencing similar enforcement actions elsewhere, such as a recent settlement involving Caesars Sportsbook in New Jersey.
- Author
Daniel Williams
