Lawmakers Introduce Bill to Block Online Lottery Sales
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Bipartisan legislators in Colorado have introduced Senate Bill 26-117 to reverse the Colorado Lottery Commission’s recent authorization of direct-to-consumer digital sales and credit card purchases. The legislative challenge highlights an escalating national tension between state lottery modernization initiatives and responsible gambling advocacy.
Key Takeaways
- Digital Rollback: SB 26-117 would legally restrict all state lottery purchases to in-person, retail transactions using only cash or debit cards.
- Retailer Protection: The bill addresses fierce pushback from brick-and-mortar retailers who argued the state's proposed mobile app would cannibalize their sales and impose unsustainable credit card merchant fees.
- Regulatory Friction: Lawmakers explicitly rebuked the Lottery Commission for bypassing the General Assembly to approve the digital expansion in late 2025.
Industry Impact and Legislative Pushback
The drive to modernize state-run lotteries has hit a significant legislative roadblock in Colorado. Following the Colorado Lottery Commission’s unilateral move in November 2025 to permit online ticket purchases via a state-run mobile app and allow the use of credit cards, state lawmakers have formally introduced legislation to nullify the expansion.
Senate Bill 26-117, driven by a bipartisan coalition of 25 co-sponsors, seeks to mandate that all Colorado Lottery products remain exclusively available at physical retail locations. The proposed law represents a direct legislative veto over the Commission’s ongoing transition toward an iLottery model.
At the core of the dispute is the balance between state revenue generation and social responsibility. The Lottery Commission defended its rule changes as a necessary evolution to meet modern consumer preferences, pointing to a prior state law that granted authority to remove certain cashless payment restrictions. However, legislators argue that the Commission overstepped by implementing direct-to-consumer digital channels without comprehensive legislative oversight or public consensus.
State senators backing the bill cited the heightened problem gambling risks associated with app-based gaming and credit card debt. A recent poll highlighted by lawmakers underscored these concerns, revealing that 70% of local respondents oppose allowing young adults to buy lottery products online via credit cards.
The legislative push also heavily features economic protections for the state's existing retail network. Convenience stores and traditional lottery vendors have vehemently opposed the Commission's digital framework. Retail representatives argued that a state-operated app directly competes with their businesses, while the integration of credit card payments forces them to absorb high processing fees that decimate the minimal profit margins associated with retail ticket sales.
As SB 26-117 moves through the legislative process, the standoff in Colorado serves as a bellwether for the broader North American lottery industry. While the shift toward iLottery platforms has accelerated across various jurisdictions, this forceful pushback demonstrates that traditional retail stakeholders and responsible gambling advocates retain significant power to stall digital lotto expansions.
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