Colorado regulators have imposed a $20,000 penalty on Fanatics Sportsbook after a VIP host sent promotional text messages to a customer who had enrolled in the state’s self-exclusion program. The Colorado Limited Gaming Control Commission approved a stipulation agreement with the operator at its monthly meeting in August 2026, according to the Denver Post. The action enforces Colorado rules that require gambling companies to stop marketing to people who have asked to be excluded.
Penalty and corrective actions
Under the approved stipulation, Fanatics must pay the $20,000 amount. The company also agreed to examine its self-exclusion records to determine whether any other individuals received marketing text messages between Jan. 1, 2024, and March 1, 2026. Staff who serve as VIP liaisons will receive training on the state's self-exclusion obligations, the agreement said. The commission approved the arrangement after regulators and the company negotiated the stipulation.
Timeline of unauthorized contacts
The customer placed himself on Colorado's self-exclusion list on Jan. 15. A Fanatics VIP team member sent a promotional offer via text on Feb. 1, the stipulation agreement noted. That contact was reported, and Fanatics handed out training materials to its VIP team on Feb. 4. The same customer then received another promotional text on Feb. 17. The first contact was reported before the second text was sent. The person was identified in the agreement only by initials. Months earlier, in October 2025, Fanatics had included in its responsible gaming plan the statement that it "will not intentionally market to any known self-excluded individuals."
Colorado's self-exclusion framework
Colorado permits gamblers to sign up for self-exclusion durations of one, three, or five years. While enrolled, they cannot participate in online sports betting, and operators are supposed to halt promotional messages. The state list contains more than 1,200 names. It was introduced as a response to worries about problem gambling after online sports betting became legal in Colorado in 2020. Enrollment terms cover one, three, or five years, depending on the person's choice. The list is meant to help people manage gambling problems.
VIP incentives under scrutiny
VIP programs provide bonuses and other benefits to frequent bettors, but critics argue they often reward customers who lose heavily and may encourage harmful behavior. Danny Funt, author of "Everybody Loses: The Tumultuous Rise of American Sports Gambling," has reported that such deals reach just 2% to 3% of customers while generating 60% to 70% of company revenue. Funt quoted a former DraftKings VIP host as saying, "If your money management is good, you're probably not going to end up being a VIP." Funt described the perks as "unbelievable" and wrote that a former host said betting irresponsibly is basically a requirement to qualify. Critics say the structure creates incentives to keep high-loss customers engaged. NBC Sports noted separately that Fanatics Sportsbook is one of three NFL sportsbook partners for 2026.
Fanatics' history in Colorado
Fanatics entered the Colorado market through PointsBet, taking over that operation in December 2023. PointsBet had earlier reached a $1.6 million deal with the University of Colorado Boulder to promote sports gambling on campus, according to the Denver Post. That arrangement was canceled in March 2023 amid heavy criticism.
