Colorado regulators fined Fanatics Sportsbook after it sent promotional offers to a self-excluded VIP, highlighting ongoing enforcement of responsible gambling rules and new player protection laws in the state
Colorado’s Division of Gaming has imposed a $20,000 fine on Fanatics Sportsbook after the operator twice sent promotional text messages to a user who had placed themselves on the state’s self-exclusion list. The enforcement action, finalized at the Colorado Limited Gaming Control Commission’s August 27 meeting, follows a regulatory investigation confirming that Fanatics violated state rules designed to prevent marketing to self-excluded individuals.
Details of the Regulatory Violation
According to official documents, the affected user added themselves to Colorado’s self-exclusion register for a five-year period beginning January 15, 2026. Despite this, Fanatics Sportsbook’s VIP team contacted the individual with a promotional offer via text on February 1. The operator identified the error three days later, notified its VIP leadership, and distributed updated training materials. However, a second promotional message was sent to the same self-excluded user on February 17, again breaching state regulations.
Fanatics Sportsbook’s responsible gaming policy explicitly states it will not intentionally market to known self-excluded individuals. The Division of Gaming found that the operator failed to ensure compliance with this policy, resulting in two separate violations within the same month.
Settlement Terms and Operator Response
Fanatics Sportsbook admitted to the violations and entered into a settlement agreement with the Division of Gaming. In addition to paying the $20,000 fine, the operator agreed to audit its self-exclusion outreach records from January 1, 2024, through March 1, 2026, to determine if other self-excluded users were improperly contacted. Fanatics must submit a detailed report of its findings to the regulator and provide evidence of enhanced training for all VIP staff on responsible gaming and regulatory compliance.
The settlement underscores the requirement for all licensed Colorado sports betting operators to avoid any marketing or engagement with individuals on the statewide self-exclusion list. As of August 2026, more than 1,200 Colorado residents are registered for self-exclusion, according to state data.
Broader Enforcement and Legislative Changes
Colorado’s enforcement action against Fanatics Sportsbook comes amid a broader regulatory focus on responsible gambling. Other operators, including Caesars Sportsbook, have faced significant fines in different states for similar violations. In early August, Caesars Sportsbook agreed to pay nearly $300,000 to the New Jersey Division of Gaming Enforcement after allowing self-excluded patrons to access betting platforms.
In June 2026, Colorado enacted SB26-131, a comprehensive gambling reform law signed by Gov. Jared Polis. The law introduces new restrictions, such as banning push notifications and text messages to inactive users, prohibiting credit card deposits, limiting daily deposits to six per user, and restricting marketing language and advertising to those under 21. A proposed ban on all prop bets was ultimately dropped due to projected tax revenue losses.
Colorado’s updated regulatory framework has been cited by lawmakers in other states, including Pennsylvania, as a model for strengthening player protections in online gambling markets.
Self-exclusion is a responsible gambling tool that allows individuals to voluntarily block themselves from accessing online sports betting platforms for a set period. In Colorado, all licensed operators are required to honor the self-exclusion list by preventing account access and refraining from any direct marketing or promotional contact with registered individuals. Violations can result in regulatory fines, mandatory audits, and additional compliance requirements for operators.
