Fee on in-game purchases would fund youth mental health services under Colorado bill
Coloradans who make add-on purchases within an online game would have to pay a new fee to fund youth mental health services under a bill approved by the Colorado Legislature.
House Bill 26-1418 would charge users of online games “reasonably likely” to be used by youth a 5% fee on any in-game purchases, starting in January. Those funds would go to the state to fund various mental health programs for youth in Colorado through state-run enterprises. After October 2027, the enterprises can change the amount of the fee.
The bill presents a way to fund youth mental health services while Colorado is working under a tight state budget, bill sponsor Senator Judy Amabile, a Boulder Democrat, said during its Senate committee hearing this week.
The fee would fund peer mental health support professionals, out-of-school grant programs, and educational rights programs that support students with disabilities. Bill sponsor Representative Sean Camacho, a Denver Democrat, said the state already has legal precedent allowing enterprises to collect fees that support specific public services. Fees are distinct from taxes, which are subject to Colorado’s Taxpayer’s Bill of Rights.
Bill sponsor Senator Dylan Roberts, a Friso Democrat, said games covered by the policy “do a tremendous job” of locking kids in for hours of play time, and certain purchases within the games further entice them to keep playing. Video games and online gaming contribute significantly to mental health challenges for youth, he said. Lawmakers cited the game platform Roblox and Minecraft when discussing the bill.
Groups in support of the bill include Colorado Youth for a Change, Children’s Hospital Colorado, Colorado Children’s Campaign, and Disability Law Colorado.
Behavioral Health Administration opposes bill
Heather Tritten, president and CEO of the Colorado Children’s Campaign, said HB-1418 takes a small portion of revenue generated by online games to support youth mental health.
“Colorado’s kids need and deserve a dedicated, durable funding stream for mental health supports, especially one that doesn’t put extra strain on the general fund,” Tritten said in the committee hearing.
Representative Yara Zokaie, a Fort Collins Democrat, also sponsors the bill.
The Colorado Behavioral Health Administration testified in opposition to the bill in its Senate committee hearing Monday. Ryan Templeton, governmental affairs officer at the agency, said it presents legal concerns that would put the stability of programs it intends to fund at risk.
“If revenue streams for these essential youth behavioral health programs were to fail due to litigation or legal invalidation, our state would be left in a more precarious position than we are today, resulting in a reduction of services and restricted access to behavioral health supports for children,” Templeton said.
The Entertainment Software Association also opposes the bill, expressing concerns about having to geolocate game users to determine Colorado residency to properly charge the proposed fee.
The bill passed the Senate on an 18-17 vote Wednesday, and the House approved amendments made in the Senate and passed the bill again on a 38-26 vote. All Republicans voted against the bill, and a few Democrats joined Republicans in opposition. It now goes to Colorado Governor Jared Polis’ desk to be signed into law.
The 2026 legislative session ended Wednesday.
