Colorado Fines Fanatics $20K for Texting a Self-Excluded Bettor Twice
Colorado regulators penalized Fanatics Sportsbook after a self-excluded customer received two promotional texts, raising questions about enforcement scale.
This article was produced with AI assistance and edited by the ON360 newsroom.
The Colorado Limited Gaming Control Commission has fined Fanatics Sportsbook $20,000 after the operator sent a self-excluded gambler promotional texts on two separate occasions, according to a stipulation agreement between the state and the company reported by Gambling Insider.
The customer, identified only as “T.M.” in regulatory filings, placed themself on Colorado’s self-exclusion list on January 15, 2026. Despite that status, a member of Fanatics’ VIP team sent them a promotional offer on February 1.
A second slip despite retraining
Fanatics identified the error and issued new training materials to its VIP service representatives on February 4. The same customer received a second promotional message on February 17, prompting the regulatory response.
Derek Kuhn of the Colorado Department of Revenue told Gambling Insider the fine was calculated under a “framework of progressive discipline.” He said the Division of Gaming weighs the number of violations, statutory guidelines and any corrective steps an operator has already taken.
Kuhn said fines are set case-by-case, with penalties escalating for repeated or severe violations. Under the state’s progressive framework, individual infractions can draw penalties of up to $25,000.
The settlement requires Fanatics to audit its self-exclusion program, enhance ongoing staff training and submit proof of compliance. Kuhn said the company has already retrained VIP staff and made “product interface enhancements” meant to prevent similar breaches.
Fanatics calls it a learning moment
Fanatics VP of Communications Kevin Hennessy said the company self-reported the infraction and stressed that the customer’s exclusion remained active throughout, meaning they could not actually place a bet. “Unfortunately mistakes happen,” Hennessy said, adding that Fanatics treats every violation as “an opportunity to do better.”
Fanatics posted close to $13 billion in overall revenue in 2025, with roughly $2 billion coming from its gambling operations, according to a Forbes report citing CEO Michael Rubin. Against that backdrop, a $20,000 penalty is a rounding error.
Size versus impact
Jamie Glick, executive director of the Problem Gambling Coalition of Colorado, told Gambling Insider the fine’s dollar figure matters less than whether it changes behaviour. “The most important question is not whether $20,000 is objectively large or small, but whether the consequence is meaningful enough to change behavior and prevent the same thing from happening again,” Glick wrote.
Glick said self-exclusion systems “should reinforce that decision, not undermine it through promotional messaging.” He argued that compliance costs should never simply become a line item, and that penalties should push operators to invest in the technology and oversight needed to prevent repeat failures.
Ontario operates its own self-exclusion protections through iGaming Ontario and licensed operators, alongside tools such as deposit limits for anyone wanting to manage their play. The Colorado case is a reminder that even automated marketing systems need close monitoring to keep excluded players out of promotional loops.
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