Colorado Hits Fanatics Sportsbook With $20K Fine Over Self‑Exclusion Breach

Colorado’s gaming regulator has fined Fanatics Sportsbook $20,000 after the operator twice sent promotional offers to a VIP player who had already self‑excluded from all online sports betting platforms.

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The violation was discussed during the Colorado Limited Gaming Control Commission’s meeting on Thursday, August 27, where commissioners confirmed that a settlement had been reached. Fanatics admitted it broke state rules and agreed to pay the penalty.

The fine comes at a time when Colorado is reshaping its gambling market through new legislation. Earlier this year, Governor Jared Polis signed SB26‑131, a law that introduced sweeping changes to sports wagering in the state.

The rules now prohibit operators from sending push notifications or text messages that encourage inactive users to gamble, ban the use of credit cards for account funding, and limit bettors to six deposits per day.

The law also bars advertising aimed at anyone under 21 and restricts marketing language, forbidding terms such as “bonus bet” or “no sweat.”

Fanatics sent two violating messages in early February 

A Colorado Division of Gaming investigation revealed that Fanatics Sportsbook broke its own responsible gaming pledge when it contacted a self‑excluded player twice in February. The gambler had placed himself on the state’s exclusion list for five years on January 15, 2026, yet the operator’s VIP team still reached out. 

On February 1, a promotional text was sent to the user, and although Fanatics identified the mistake three days later and circulated training materials to its VIP staff, the same error happened again. On February 17, another promotional message was delivered to the same individual.

The regulator noted that Fanatics had previously stated in its responsible gaming strategy that it “will not intentionally market to any known Self‑Excluded individuals.” 

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By sending two separate offers to someone barred from play, the sportsbook failed to uphold that commitment and violated state rules. The commission concluded that Fanatics did not ensure compliance with its own program and, in doing so, breached Colorado’s regulations on customer outreach.

Fanatics admitted to the violation

The Division of Gaming confirmed that Fanatics accepted the findings, admitted the breach, and chose to settle through a mutual agreement.

Alongside the $20,000 fine, the sportsbook committed to reviewing its self‑exclusion list to check if other users had been contacted between January 2024 and March 2026. A detailed report of that audit must be submitted to the Division.

Fanatics also agreed to strengthen training for its VIP staff, focusing on regulatory awareness and responsible gaming practices, and provide proof of those measures.

Colorado’s self‑exclusion program allows residents to block themselves from online sports betting apps for set periods, and operators are required to stop all engagement with those individuals. More than 1,200 people are currently registered statewide.

Regulators stressed that the rules apply to every licensee, and recent enforcement actions show that Fanatics is not alone. Caesars Sportsbook, for example, reached a settlement in New Jersey earlier this summer, paying nearly $300,000 after investigators found self‑excluded patrons were still able to place bets through other platforms.

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Source: SBC