The Colorado Limited Gaming Control Commission imposed a $20,000 fine on Fanatics Sportsbook for sending promotional messages to a VIP user who had self-excluded from all online sports betting services. This decision was announced during the commission's meeting on Thursday, August 27, when it was revealed that Fanatics admitted to violating state regulations.
On June 10, Fanatics signed a stipulation and agreement after a Colorado Division of Gaming investigation found that the sportsbook had failed to adhere to laws governing customer outreach. This investigation uncovered that last year, Fanatics had claimed it would avoid marketing to individuals known to be self-excluded.
In detail, the gambler in question had self-excluded himself from betting for five years beginning January 15, 2026. Despite this, on February 1, a member of Fanatics’ VIP team sent the user a promotional text message. When Fanatics recognized the error on February 4, it quickly notified its VIP leadership team and distributed training materials to ensure compliance among customer-facing members. Nonetheless, on February 17, another promotional text was sent to the same self-excluded user.
The Colorado regulator noted that by sending these messages, Fanatics failed to comply with its own responsible gaming strategy and violated state regulations. Following the findings, Fanatics accepted the violations and chose to resolve the matter through a mutual agreement with the Division of Gaming.
Alongside the financial penalty, Fanatics committed to auditing its self-exclusion list to verify whether any other self-excluded individuals were contacted improperly between January 1, 2024, and March 1, 2026. The company also agreed to enhance training for all VIP staff regarding regulatory compliance and responsible gaming, with reporting requirements to the Division.
Colorado’s self-exclusion program allows gamblers to limit their access to online betting platforms for specific periods, and sports betting licensees must refrain from contacting individuals on this list. Reports indicate over 1,200 residents are currently self-excluded in Colorado. Other sportsbooks have faced similar scrutiny recently; for example, Caesars Sportsbook reached a settlement with New Jersey regulators in early August, requiring them to pay nearly $300,000 due to violations related to self-exclusion protocols.
Colorado’s fine against Fanatics arrives in the context of the state’s recent passage of comprehensive gambling legislation aimed at enhancing protections for players. Signed by Governor Jared Polis in June, the law includes provisions that prohibit promotional messages to inactive users, bans credit card funding, limits daily deposits to six, and restricts marketing to individuals under 21. A previous iteration of the bill had even considered banning all prop bets, a proposal ultimately abandoned amid concerns over potential fiscal impacts on state revenue.
