Colorado Poker Laws
Current Colorado Gambling Laws With the legalization of recreational marijuana in 2012 (a law that went into effect at the start of 2014), Colorado seems like a progressive state that would be open. Colorado Gambling Laws As far as legal definitions go, Colorado defines gambling as follows: (2) “Gambling” means risking any money, credit, deposit, or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device, or the happening or outcome of an event, including a sporting event, over.
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- Home » Laws Colorado is a reasonable state to live in for poker players. On one hand online poker is illegal (at least that's a reasonable interpretation), but on the other hand it's possible to play poker live in any licensed casino, as well as at home in a social setting.
- Colorado Online Poker Laws Colorado is one of the trickier states to unravel when it comes to online poker laws. On the one hand, prohibition is aimed at operators and service providers, not players. On the other hand, there are state issued documents that express point-blank that “internet gambling is illegal under state and federal law.”.
Relevant state code: 18-10-101 et seq.; 12-60-101 et seq.; 12-47.1-101 et seq.
Colorado Quick Links
- 1.The State of Colorado & Gambling Laws
- 1.2What is Legal in Colorado?
- 2.Colorado Online Poker Laws Explained
- 3.Is It Legal to Play Poker?
- 4.Will Colorado Regulate Online Poker?
- 5.Colorado's Gambling History
Gambling in Colorado dates back to at least the late 19th century when icons like “Poker Alice” would roam from table to table, playing cards and raking in the dough. Gambling was a popular way to pass time at camps in pre-colonial Colorado – remember, the state only became a territory in 1861 before joining the union in 1876, and at the time the region was a mix of tribal communities and settlements populated by gold miners and settlers from the east looking for land and opportunity.
Colorado Gambling Laws
As far as legal definitions go, Colorado defines gambling as follows:
(2) “Gambling” means risking any money, credit, deposit, or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device, or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control, but does not include:
Bona fide contests of skill, speed, strength, or endurance in which awards are made only to entrants or the owners of entries;
(b) Bona fide business transactions which are valid under the law of contracts;
(c) Other acts or transactions now or hereafter expressly authorized by law;
(d) Any game, wager, or transaction which is incidental to a bona fide social relationship, is participated in by natural persons only, and in which no person is participating, directly or indirectly, in professional gambling; or
(e) [Repealed.]
(f) Any use of or transaction involving a crane game, as defined in section 12-47.1-103 (5.5), C.R.S.
Casino gambling is legal in three towns in Colorado: Central City, Cripple Creek, and Black Hawk. Not coincidentally, those three towns are also considered National Historic Districts and gambling is almost seen as a tradition there. In addition, there are two tribal casinos: the Ute Mountain Casino is in Towaoc and the Sky Ute Casino is located in Ignacio. Both of the tribal casinos operate outside the laws applied to the non-tribal casinos and they’re therefore open 24 hours a day.
What is Legal in Colorado?
All in all, there is a network of more than 40 gambling venues in Colorado. Approved games include poker, blackjack, roulette, craps, and slot machines, and the tribal casinos also offer keno.
Colorado residents can legally bet on dog and horse racing so long as the wagering is part of a pari-mutuel or pooled bet (the kind used at racetracks in Colorado and most other states). As of 2003, off-track simulcasts are also permitted.
Social gambling is allowed under the provisos that the game is secondary to a friendly gathering and that the host not rake or make a profit of the game. There have been pushes to classify poker as a game of skill, which would make it exempt under the gambling regulation/definition above, but that challenge was scuttled in the Supreme Court. Charity gambling is legal but limited to bingo and raffles that must be individually licensed by the state. Both types of events follow the “payment, luck, and prize” rule which basically says that all three of those elements must be present for a contest to technically be considered gambling. Therefore, a nonprofit could hold a casino night that offered no prizes or no buy-in and scoot right through the legal loophole.
Colorado does have a state lottery as well as scratch tickets. It also participates in multi-state lotteries such as Mega Millions and Powerball.
Penalties for gambling in Colorado are staggered. Individual gamblers can be convicted of a class 1 petty offense while professional gamblers are subject to a class 1 misdemeanor for the first offense but repeated offenses pump the charge up to a class 5 felony. Underage gambling is considered a class 2 misdemeanor, punishable by up to 12 months in jail and a maximum $1000 fine. Facilitating the gambling of a minor is a felony. Possession of a gambling device (defined as “any device, machine, paraphernalia, or equipment that is used or usable in the playing phases of any professional gambling activity, whether that activity consists of gambling between persons or gambling by a person involving the playing of a machine; except that the term does not include a crane game”)is also a class 2 misdemeanor, also rising to the level of a class 6 felony of the offense is repeated.
Colorado Online Poker Laws
Colorado is yet another state that has yet to take an official stance on US online poker, at least as far as specific laws go. There is nothing on the books that singles out online poker or anything similar, however internet-based gambling is assumed to illegal under the umbrella gambling laws already in place – something backed up by a statement issued by the Colorado Attorney General in 2005. Basically, until online poker is listed as a specific exemption or otherwise licensed, it remains illegal by default.
That said, enforcement is scarce if not nonexistent. There simply isn’t much interest in policing people who want to play online poker from the comfort of their own homes and most if not all online poker sites happily welcome players from Colorado.
Is it Legal to Play Poker in Colorado?
Yes! As long as you’re playing at one of the card rooms in a licensed casino you can legally play poker in the state of Colorado. In fact, many of the casinos host tournaments that attract some serious talent all vying for the increasingly hefty jackpots. Social gaming is also permitted provided all participants abide by state law and there is a movement to classify poker as a game of skill so it would be exempt from blanket gambling regulations.
Will Colorado Regulate Online Poker?
Colorado is the land of soaring peaks and a proliferation of fun-filled outdoor activities, but the Rocky Mountain State is also one of the first in the nation to legalize marijuana for recreational use. What does that have to do with gambling? Well, everything or nothing, depending on your outlook. The legalization of marijuana does more than hint at a progressive population – it also points towards a legislature that recognizes the need for progress and legal evolution. The ability to tax online poker would be a major asset to the state’s coffers much in the same way that taxing marijuana has benefited the state.
The Colorado Gaming Association is responsible for much of the pro-gambling push. They have been talking about a new bill that would legalize online poker and generate that aforementioned tax revenue – much of which would theoretically go to support community concerns such as education – but action has yet to be taken.
History of Gambling in Colorado
Many believe that the first casino in America is Brown’s Saloon, which was built in 1822 on the corner where Colorado, Utah, and Wyoming meet.
In 1983, Colorado launched their state lottery. Powerball and Mega Millions became available later, in 2001 and 2010 respectively. Colorado added the 22-state Lucky for Life game to the state’s lottery list in 2016.
Casino gambling was officially legalized in 1991 but limited to the historic towns of Black Hawk, Cripple Creek, and Central City. Guidelines mandated a maximum bet of $5 (hardly high stakes by Vegas standards) and the minimum age was set at 21 years old. The law was hotly contested, with more than 41% of voters going against the proposition.
In 1995, the state signed compacts with the Ute Mountain and Southern Ute Tribes that allowed them the right to run casinos independently from state oversight and regulation. The tribal casinos are also tax exempt but other rules governing betting limits and the type of approved games allowed on premises stand (with the noted addition of keno).
The Bingo-Raffle Advisory Board was created in 1999 to license charity games including so-called “Las Vegas Nights” as well as the obvious bingo games and raffles. Licenses are restricted to nonprofit organizations that intend to use the events solely for fundraising purposes.
In 2008, Colorado passed Amendment 50 granting the three casino towns the right to adjust their own regulations. Bets for table games were raised to a maximum of $100 per hand and slot games saw a similar rise in stakes. The types of table games also expanded to include craps and roulette alongside poker and blackjack and the original 2am curfew was lifted to allow round-the-clock gambling.
Important CO Notes
- Regulated offshore poker websites accept players from CO
- iGaming bills have been introduced in the state legislature
- Most likely one of the next few states to pass internet poker
- Commercial & tribal casinos, & racetrack wagering are legal
- Lottery, pari-mutuel betting, & charitable gaming also legal
“Reviewed by Chuck Humphrey – 50 year Gaming Law Practitioner”
Future Outlook of Online Poker in Colorado – Estimated date of legalization: 2019-2020
The following graph tracks our expected legislation of online poker in Colorado on a state law level. It is currently already legal on a Federal level. This graph monitors the current rise or fall of expected legalization.
Recent Activity
Colorado residents do engage in online poker. Though the law enforcement authorities emphasize and disseminate information on the illegality and undesirability of the act, they have not taken any action against online poker players or online poker sites located outside of the USA. This situation is likely to continue.
There has been no serious move to initiate the legalization of online poker in the state. However, an article in CardPlayer.com[A] stated that the Colorado Gaming Association[B] had drafted a bill for legalizing online poker in the state in May 2012. But, since the association was busy with other gambling-related issues, nothing further was done. The association’s executive director Lois Rice said that bill would not be introduced in 2013. However, they would monitor the progress of federal attempts to legalize online poker and also the outcomes in the states that have legalized online poker. The bill is based on the one in New Jersey. The office of then House Speaker Frank McNulty said that the Colorado Gaming Association has not approached any of the legislators for introducing the bill. A Colorado constitutional provision allows players in legalized casino poker rooms in Colorado to wager up to $100 per bet. That provision would have to be considered in any constitutional amendment made to permit online poker.
Colorado is making some headway on their interest of regulating and licensing poker over the internet, although the Colorado Constitution would need to be amended first and foremost. Former Attorney General John Suthers mentioned that if passed it would be as intrastate poker.
Current Gambling Laws in Colorado
Gambling is covered under Article 10 of Title 18 (Criminal Code) of the Colorado Revised Statutes[C]. Under Section 18-10-101 titled “Legislative declaration – construction” the general assembly of Colorado recognizes the close relationship between professional gambling and other organized crime, and therefore, seeks to restrain all persons from seeking profit from gambling activities and to safeguard the public against the evils induced by common gambling houses. However, the objective is not to restrict participation by individuals in, “sport and social pastimes which are not for profit, do not affect the public, and do not breach the peace”.
Section 18-10-102[D] includes relevant definitions. “Gambling” means risking any money, credit, deposit, or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device, or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control, but does not include:
(a) Bona fide contests of skill, speed, strength, or endurance in which awards are made only to entrants or the owners of entries;
(b) Bona fide business transactions which are valid under the law of contracts;
(c) Other acts or transactions now or hereafter expressly authorized by law;
(d) Any game, wager, or transaction which is incidental to a bona fide social relationship, is participated in by natural persons only, and in which no person is participating, directly or indirectly, in professional gambling.
“Professional gambling” is defined as: (a) Aiding or inducing another to engage in gambling, with the intent to derive a profit therefrom; or (b) Participating in gambling and having, other than by virtue of skill or luck, a lesser chance of losing or a greater chance of winning than one or more of the other participants.
Section 18-10-103 of the Colorado Revised Statutes deals with gambling offenses. A person who engages in gambling commits a class 1 petty offense. A person who engages in professional gambling commits a class 1 misdemeanor. Repeating gambling offenses result in a class 5 felony.
The permitted forms of gambling are covered under different Titles of the Colorado Revised Statutes. Sweepstakes and contests are covered under Part 8 of Article 1 of Title 6. Title 12 covers bingo and raffles under Article 9, casino gaming under Article 47.1 and 47.2 and racing under Article 60. State Lottery is covered under Part 2 of Article 35 of Title 24.
Section 18-10-106 of the Colorado Revised Statutes is relevant for the prohibition of online poker. It states, “Whoever knowingly transmits or receives gambling information by telephone, telegraph, radio, semaphore, or other means or knowingly installs or maintains equipment for the transmission or receipt of gambling information commits a class 3 misdemeanor. If the offender is a repeating gambling offender, it is a class 6 felony.” Here the Internet is implicit under “other means”.
History of Gambling in Colorado
Land Based Poker in Colorado
Home poker becomes permissible in Colorado under the “social gambling exception[E]”. There are certain conditions that must be met. There has to exist a, “bona fide social relationship” between the players, which means that they must have an established social relationship based upon some common interest other than poker. The home gambling games cannot infringe into the area of “professional gambling”. The implication is that no one other than the players can profit from the game or activity in any manner. Stated simply, this means that there cannot be a rake for the home owner, even to cover costs.
Charity poker tournaments are illegal in Colorado. The activity includes the elements of gambling listed in the statutes and there is no exemption approved by the legislature.
Live poker gambling is permitted only in the licensed casinos or through the social exception clause. Any other form of poker, such as poker tournaments in business establishments and particularly bars, has to fall outside the purview of gambling in order to be legal. One of the following three elements must be absent: consideration, chance, and reward. Poker inherently has chance. Therefore either there must be no buy-in or no payout.
Gambling Laws in Colorado
The legalized form of gambling in Colorado are casino gaming, pari-mutuel wagering, charitable bingo, state lottery, sweepstakes and social gambling.
Title 12 (Professions and Occupations) Articles 47.1 and 47.2 of the Colorado Revised Statutes cover casino gaming. Article 47.1 is the Colorado Limited Gaming Act which covers 38 private casinos in the historic gold mining cities of Black Hawk, Central City and Cripple Creek. These casinos are licensed and regulated by the Colorado Gaming Commission[F], which functions under the Division of Gaming, Department of Revenue. Article 47.2 is the Tribal State Gaming Compact for the two casinos run by the Ute Tribe on their reservations in Towaoc and Ignacio. Colorado legalized state regulated private casinos in 1991. At that time the maximum allowed bet was only $5. From 2009 this limit was raised to $100 and more Las Vegas style casino games were introduced. The minimum age is 21.
Title 12 (Professions and Occupations) Article 60 of the Colorado Revised Statutes covers racing. Colorado currently offers live horse racing only at the racetrack facility at Arapahoe Park in Aurora. No live greyhound racing is currently offered in Colorado. The state laws allow wagering on simulcast horse and greyhound racing. Arapahoe Park offers simulcast wagering only during the live racing season. But seven off-track betting facilities offer wagering on simulcast horse and greyhound racing year round. The minimum legal age is 18. The Racing Commission under the Colorado Division of Racing Events[G] regulates Colorado pari-mutuel wagering.
The state lottery is covered under Part 2 of Article 35 (Department of Revenue) of Title 24 (Government – State) of the Colorado Revised Statutes. The Colorado Lottery[H], instituted in 1983 regulates the lottery activity. A number of draw and scratch games are offered including the national Powerball and Mega Millions. Colorado Lottery does not currently sell tickets online.
Charitable gambling is covered under Article 9 (Bingo and Raffles Law) of Title 12 (Professions and Occupations) of the Colorado Revised Statutes. This activity comes under the oversight of the Secretary of State[I]. Participating charitable organizations are required to obtain a license from the Colorado Secretary of State’s licensing center. Section 12-9-102 defines a charitable organization as, “any organization, not for pecuniary profit, that is operated for the relief of poverty, distress, or other condition of public concern within this state and that has been so engaged for five years prior to making application for a license under this article”. Section 12-9-107 contains the important rules about who can apply for licenses, how the games are to be conducted and how the collected funds are to be deployed.
The laws governing sweepstakes fall under Title 6 (Consumer and Commercial Affairs), Article 1 (Colorado Consumer Protection Act), Part 8 (Sweepstakes and Contests). The objective of regulating sweepstakes, as stated under Section 6-1-801, was to ensure that consumers were given the complete and correct information regarding the contest. Any contest that offers prizes and is determined by skill or chance is covered along with sweepstakes, except forms of gambling otherwise covered. The most important condition is that the sponsor cannot ask for any fee or any other consideration as a condition of participating in the sweepstake. The complete terms and conditions have to be made available in the prescribed manner. If a special group has a greater chance of winning the sweepstake, then this must be made public along with the odds.
Author:Joseph Falchetti (twitter)
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