Gambling and Gaming Law Violations: Colorado Laws Explained

What Colorado Law Provides

• What counts as gambling. Gambling means risking money or anything of value for a gain that depends on chance, a gambling device, or the outcome of an event the bettor does not control, including a sporting event (C.R.S. 18-10-102(2)). The definition does not include genuine contests of skill, lawful business transactions, activity the law expressly authorizes, licensed sports betting, or games among people with a genuine social relationship where no one is engaged in professional gambling.
• What counts as professional gambling. Professional gambling means helping or getting another person to gamble in order to make a profit from it, or gambling with an advantage over other players that does not come from skill or luck (C.R.S. 18-10-102(8)).
• Where casino gaming is legal. Limited gaming may take place only in the commercial districts of Central City (the statute calls it the city of Central), Black Hawk and Cripple Creek (C.R.S. 44-30-105).
• Age. You must be at least 21 to play or collect winnings in limited gaming, and at least 21 to place a sports bet (C.R.S. 44-30-809; C.R.S. 44-30-1506(1)).

The main gambling offenses and their classifications:

Any other violation of the Limited Gaming Act or its rules is a class 2 misdemeanor unless another section of the Act says otherwise (C.R.S. 44-30-831).

Overview of Colorado Gambling Laws

Colorado’s casino and sports betting laws are in the Limited Gaming Act of 1991 (C.R.S. 44-30-101). Limited gaming and sports betting are allowed only as that article permits, and both are regulated by the Colorado Limited Gaming Control Commission (C.R.S. 44-30-104). The lottery is run by the state lottery division under a different article (C.R.S. 44-40-103), and the Limited Gaming Act does not affect the Secretary of State’s regulation of bingo and raffles (C.R.S. 44-30-106).

The Colorado Division of Gaming licenses, regulates and supervises limited gaming and sports betting (C.R.S. 44-30-202). The state also runs a responsible gaming grant program to address problem gaming (C.R.S. 44-30-1702) and a program that lets people exclude themselves from gaming (C.R.S. 44-30-1703).

Colorado voters approved sports betting in November 2019 (Proposition DD), and it took effect May 1, 2020. The law allows online sports betting through licensed internet sports betting operators (C.R.S. 44-30-1505). It does not authorize online casino games. Casino gaming is limited to the commercial districts of the three cities listed above.

Common Violations in Gambling

The most common violation is illegal gambling: betting that falls outside the licensed systems and outside the exceptions in the definition. A friendly card game among people with a genuine social relationship is not gambling under the statute if no one is engaged in professional gambling. A game run to make a profit for the organizer is professional gambling, a class 2 misdemeanor (C.R.S. 18-10-103). Keeping a place used for professional gambling, and possessing gambling devices or records for professional gambling, are separate crimes. So is offering sweepstakes-style gaming machines for a prize (C.R.S. 18-10.5-103).

Online violations usually involve sports betting. No one may offer sports betting or internet sports betting to the public without the required license (C.R.S. 44-30-837). Operators must adopt procedures to keep prohibited people from betting, and accepting a bet from anyone under 21 is a crime (C.R.S. 44-30-1506; C.R.S. 44-30-1511). Sports bets must be placed and received within Colorado unless the Division of Gaming determines otherwise under federal and state law.

Casinos, sports betting operators and internet sports betting operators must report to the Division of Gaming each year on how they promote responsible gaming through advertising and other promotions (C.R.S. 44-30-531).

Violations on the casino floor include letting someone under 21 play, cheating, and fraudulent acts such as betting after learning the outcome or claiming more than was won (C.R.S. 44-30-809; C.R.S. 44-30-822; C.R.S. 44-30-825). A casino may not extend credit to a player for limited gaming (C.R.S. 44-30-815).

Consequences of Law Violations

Violating Colorado’s gambling laws can lead to criminal charges. License holders also face fines, suspension and revocation from the gaming regulators, and some violations can lead to civil lawsuits.

Criminal Penalties Imposed

Most Colorado gambling crimes are petty offenses or misdemeanors. For offenses committed on or after March 1, 2022, a class 2 misdemeanor carries up to 120 days in jail, a fine of up to $750, or both (C.R.S. 18-1.3-501(1)(a.5)). A petty offense carries up to 10 days in jail, a fine of up to $300, or both (C.R.S. 18-1.3-503(1.5)).

Some gambling crimes are felonies. For felonies committed on or after July 1, 2020, the presumptive prison range is 2 to 6 years for a class 4 felony, 1 to 3 years for a class 5 felony, and 1 year to 18 months for a class 6 felony (C.R.S. 18-1.3-401(1)(a)(V.5)(A)). Trying to buy or influence a sports betting license decision for personal gain is a class 4 felony, and giving false or misleading information in sports betting disclosures is a class 6 felony (C.R.S. 44-30-1512).

Running limited gaming without a valid license is a class 2 misdemeanor for someone who does not hold a gaming license and a class 6 felony for someone who does (C.R.S. 44-30-822(2)). A separate section makes it a class 5 felony to knowingly violate any provision of the Limited Gaming Act (C.R.S. 44-30-802), so a felony charge may be possible for the same conduct.

Repeat offenses matter. A “repeating gambling offender” is someone convicted of professional gambling or certain other gambling offenses within five years after a prior misdemeanor conviction under those laws, or at any time after a prior felony conviction under them. A conviction in another state for conduct that would be professional gambling in Colorado also counts (C.R.S. 18-10-102(9)). A repeating gambling offender faces a class 6 felony for maintaining gambling premises and a class 5 felony for fraudulent acts in limited gaming (C.R.S. 18-10-107(3); C.R.S. 44-30-822(2)).

Police may also seize gambling devices, gambling records and gambling money. A court may order them destroyed, and gambling proceeds are forfeited to the state. A vintage slot machine (introduced before January 1, 1984) that is not used for gambling must be returned to its owner (C.R.S. 18-10-104).

Civil Liability Risks

Gaming law violations can also bring civil and administrative consequences, separate from any criminal case.

• License discipline. After notice and a chance for a hearing, the Limited Gaming Control Commission may suspend or revoke a license if a violation is proved by a preponderance of the evidence. It may also issue a reprimand or a fine of up to $100,000 for a slot machine manufacturer or distributor; $25,000 for an associated equipment supplier, operator or retailer; $5,000 for a key employee; and $2,500 for a support licensee. These penalties do not prevent a criminal prosecution (C.R.S. 44-30-524).
• Void contracts. Agreements, contracts and leases that violate the Limited Gaming Act or its rules are void and cannot be enforced (C.R.S. 44-30-832).
• Nuisance abatement. All gambling premises are common nuisances that can be shut down as the law provides (C.R.S. 18-10-107(2)).
• Lawsuits over sweepstakes machines. The attorney general or a district attorney can sue anyone offering simulated gambling devices for an injunction and damages of up to three times the business transacted, paid to the local government. A licensed Colorado gambling business that loses money because of the violation can sue for up to three times its actual damages plus attorney fees. These lawsuits must be filed within one year (C.R.S. 18-10.5-103).

Licensing Requirements for Operators

Anyone who runs or works in legal gaming in Colorado needs a license. This section covers the license types, the application process, and what licensees must do to keep their licenses.

Operator License Types

The Limited Gaming Act authorizes six types of licenses (C.R.S. 44-30-501):

• Slot machine manufacturer or distributor: for anyone who imports, manufactures or distributes slot machines in Colorado.
• Operator: for anyone who allows slot machines on their premises or places and operates slot machines on a retailer’s premises. Retail gaming licensees do not need this license.
• Retail gaming: for anyone who permits or conducts limited gaming on their premises.
• Support: for gaming employees.
• Key employee: every casino must have a person holding a key employee license in charge of all gaming whenever gaming is taking place.
• Associated equipment supplier: for suppliers of associated gaming equipment.

Sports betting has three more license classes (C.R.S. 44-30-1505):

• Master license: issued to a holder of a retail gaming license. A holder of more than one retail gaming license may receive one master license for each.
• Sports betting operator and internet sports betting operator: these licensees contract with a master licensee to run in-person or online sports betting. A master licensee may contract with no more than one of each at a time.

The commission may issue temporary or conditional versions of any of these licenses (C.R.S. 44-30-506). Licenses expire two years after they are issued and must be renewed.

Application Process Overview

Every applicant must submit fingerprints. The commission sends them to the Colorado Bureau of Investigation for a state and national criminal history check using Colorado and FBI records, and it cannot take final action on the application until the results come back (C.R.S. 44-30-510). Applicants and licensees must also provide handwriting samples and photographs on request and comply with commission subpoenas. Refusing can be enough, by itself, to deny, suspend or revoke a license.

The applicant must prove by clear and convincing evidence that it is qualified. The commission must deny a license for reasons listed in the statute, including when the applicant, an officer or director, or an owner of 5% or more (C.R.S. 44-30-509):

• served a sentence for a felony within ten years before the application;
• served a sentence for a misdemeanor gambling offense or misdemeanor theft by deception within ten years before the application;
• has a pending charge for one of those offenses, although the applicant can ask the commission to wait until the charge is resolved; or
• is or has been a professional gambler.

Compliance and Regulations

Licensees must meet ongoing requirements to keep their licenses:

• Background Checks: Applicants undergo fingerprint-based state and FBI criminal history checks, and the commission can look further into an applicant’s background (C.R.S. 44-30-510).
• Books and Records: Failing to keep the books and records the commission’s rules require, or falsifying gaming records, is a class 5 felony (C.R.S. 44-30-802).
• Responsible Gaming Reports: Casinos, sports betting operators and internet sports betting operators must file a yearly report on their responsible gaming advertising and promotion (C.R.S. 44-30-531).

Division of Gaming investigators can inspect licensed premises, gaming equipment, and books and records on demand (C.R.S. 44-30-204). Violations can lead to fines, suspension or revocation of the license (C.R.S. 44-30-524).

Consumer Protections in Gaming

Colorado law includes several protections for players:

• Posted game rules. Rules for blackjack, poker, craps, roulette and other approved games must be approved by the commission and posted in plain view of the games (C.R.S. 44-30-818).
• Slot machine payback. The theoretical payback on a slot machine must be at least 80% and not more than 100% of the value of each credit played (C.R.S. 44-30-813).
• Posted odds. A sports betting operator must establish or display the odds for its wagers (C.R.S. 44-30-1506(3)).
• No gaming on credit. A casino may not extend credit to a player for limited gaming (C.R.S. 44-30-815).
• Payment of winners. A casino that willfully refuses to pay the winner of a game commits a class 2 misdemeanor, except where the state’s Gambling Payment Intercept Act requires the casino to withhold money for a debt the winner owes (C.R.S. 44-30-817).
• Self-exclusion. Since January 1, 2023, the Division of Gaming has run a program that lets people ask to be excluded from gaming in Colorado. Requests can be made in writing, electronically or by phone, and the identities of people who ask are kept confidential (C.R.S. 44-30-1703).

Reporting Violations and Seeking Help

If you believe a casino, sports betting operator or illegal gambling operation is breaking the law, you can report it.

• Document Evidence: Keep receipts, account statements, screenshots of bets, and the names of any witnesses.
• Contact Regulatory Authorities: Reports can go to the Colorado Division of Gaming or local police. Division of Gaming investigators have the powers of peace officers. They can arrest people for gaming law violations, inspect casinos and gaming equipment, and investigate violations of the laws on limited gaming and sports betting (C.R.S. 44-30-204).
• Get Legal Advice If You Are Under Investigation: If you may be the subject of a gambling or gaming investigation, talk to a criminal defense lawyer before you answer questions.

Frequently Asked Questions

What Age Is Required to Gamble Legally in Colorado?

You must be at least 21 to play limited gaming or place a sports bet in Colorado (C.R.S. 44-30-809; C.R.S. 44-30-1506(1)). Underage casino play, letting someone under 21 play, or sharing winnings with them brings a $500 civil penalty for a first offense and $1,000 for a second. A third or later offense is a class 2 misdemeanor.

Can I Gamble Online From Colorado?

You can place sports bets online through a licensed internet sports betting operator, and the bet must be placed within Colorado (C.R.S. 44-30-1506). Colorado law does not authorize online casino games. Limited gaming may take place only in the commercial districts of Central City, Black Hawk and Cripple Creek (C.R.S. 44-30-105).

Are There Any Taxes on Gambling Winnings in Colorado?

This page does not cover tax law; ask a tax professional how your winnings are taxed. Separately, Colorado’s Gambling Payment Intercept Act requires casinos and sports betting operators, before paying certain winnings, to check the winner against a state registry of people who owe debts such as unpaid child support. If the winner is listed, the licensee must withhold the amount owed, up to the full payment (C.R.S. 44-30-1516; C.R.S. 44-33-105).

What Should I Do if I Suspect Gambling Fraud?

Write down what you saw and report it to the Colorado Division of Gaming or local police. Cheating games and devices in a licensed casino are a class 6 felony (C.R.S. 44-30-825), and other fraud in limited gaming is a crime under C.R.S. 44-30-822.

Are There Resources for Problem Gambling in Colorado?

Yes. Colorado’s self-exclusion program lets you ask the Division of Gaming to exclude you from gaming in the state (C.R.S. 44-30-1703). The state also funds a responsible gaming grant program, run by the Limited Gaming Control Commission with the state behavioral health administration, to address problem gaming (C.R.S. 44-30-1702).