Colorado Keeps iLottery Alive But Cuts Credit Cards
Colorado senators have approved Senate Bill 117, but the final Senate version is much narrower than the original proposal. The amended bill was passed by 22 votes to 13 on April 23 and now moves to the House Finance Committee. The wider plan to roll back iLottery is gone, leaving the focus on credit card payments.
The bill now focuses on credit card payments for lottery products. That is a much narrower outcome than the original push, which sought to block online sales of lottery tickets and instant scratch games. For the Colorado Lottery, the result keeps its online plans alive, but removes one payment option before direct online sales are expected to begin in 2027.
It was not only about payments. Lawmakers reacted to the November 2025 rule changes that allowed credit cards and online lottery sales. Supporters of SB 117 said using borrowed money increases risk. The debate also brought up casino concerns. Some warned that online instant games could resemble slot play on phones. Others said the final bill just blocks credit cards and does not go further.
Colorado’s fiscal note estimates a lottery revenue drop of $5.0m in FY2026-27 and $10.2m in FY2027-28. That would mean less money for lottery-backed programmes, including parks, outdoor recreation, conservation funds, and school capital construction.
For lottery partners, couriers, and future suppliers, the result is mixed. Online sales remain in place, but payment options will be limited to debit, cash-linked methods, and other non-credit options. The next step is the House. If lawmakers keep the current version, the iLottery plan can continue under stricter rules. If the debate shifts back to instant games, more delays could follow before the planned 2027 launch.
💡 TGJ Take
Colorado has chosen a middle lane for now. The state is not killing online lottery, but it is drawing a hard line around credit-funded play. That gives the Lottery room to modernise while giving lawmakers a consumer-protection win. For suppliers and couriers, the message is clear: build around safer payment rails first, because credit cards are now the weakest part of the business case.
