Known for its beautiful landscapes and majestic mountain ranges, Colorado has been a bastion of gambling since the Gold Rush days, when thousands of people flocked to the state in search of wealth and prosperity. Gambling was a common occupation among frontier inhabitants throughout the 19th century. Doc Holliday, Wyatt Earp, and Bat Masterson were only a few of the famed cardsharps who frequented the saloons in the Centennial State.
Gambling went unregulated in these early days, but a lot has changed since then. Colorado is now home to legal horse racing, sports betting, lotteries, and full-fledged casino gaming. Although reasonably lenient, the state’s regulatory framework protects the public and aligns with the public interest.
Commercial gaming is densely concentrated in Central City, Cripple Creek, and Black Hawk, all of which have attained historic-town status. The three cities are home to over thirty commercial casinos where visitors can play anything from slots and video poker to table mainstays like roulette, blackjack, craps, and baccarat.
Two tribal casinos operate in the southwestern part of the state, near the border with New Mexico, in Towaoc and Ignacio. The gaming sector is a major contributor to the local economy, providing jobs to thousands of residents and generating over $403 million in annual tax revenue.
However, state laws are significantly less permissive when it comes to interactive gambling. Colorful Colorado joined the ranks of states with legal sports betting in late 2019, allowing locals to place their wagers both online and in person at retail sportsbooks. Daily fantasy sports also enjoy legal status, but online casino gaming and poker remain illegal in the Centennial State. Lotteries are available in a retail format only.
Gambling Laws in Colorado
Several forms of casino gaming are legal in Colorado, provided that operators obtain authorization from local regulators. The Division of Gaming within the Department of Revenue and the Limited Gaming Control Commission are the two agencies responsible for administering the regulatory framework and ensuring compliance with state gambling laws.
Colorado Revised Statutes (CRS)
Limited Gaming Act of 1991
Amendment 50
Colorado Compacts with Tribal Nations
Colorado Revised Statutes (CRS)
The Colorado Revised Statutes (CRS) define gambling in Section § 18-10-102, describing it as staking money or anything else of value on events that are partially or entirely based on chance for personal gain. The person placing the wager generally has no control over the outcome of the event. Professional gambling is further defined in the same section as encouraging or instigating gambling participation in order to derive profits from bettors.
The definition excludes contests in which participants earn rewards based on personal qualities such as speed, stamina, and skill. Examples include carnival games, sporting contests, and races. People who earn their living from skill-based games like poker are not labeled as professional gamblers. Instead, the term applies to individuals who profit from offering unauthorized or prohibited gambling products.
The legal forms of gambling in Colorado include state-operated lotteries, social gaming, pari-mutuel betting on horse races, charitable games, raffles, and licensed casino gaming. Those who violate the law risk charges for misdemeanors, petty offenses, or felonies under Section § 18-10-103 of CRS. Individuals who engage in gambling are committing a petty offense.
Those who engage in professional gambling commit a class 2 misdemeanor. The same classification applies to people who possess illegal gaming devices or equipment. Repeated professional gambling offenses are classified as class 5 felonies. Petty offenses are the least serious crimes, carrying lenient sentences of up to ten days in jail and/or a maximum fine of $100 under CRS § 18-1.3-503.
Class 2 misdemeanors are more serious, and the sentences reflect that. People convicted of professional gambling face up to 120 days in jail and/or maximum fines of $750. Sentences for repeat violations are even harsher, with offenders risking one to three years in jail along with maximum fines of $100,000.
Limited Gaming Act of 1991
The Centennial State approved limited casino gaming in 1991 with the passage of the Limited Gaming Act. The legislation permitted the legal operation of slots, poker, and blackjack at authorized commercial casinos in Cripple Creek, Central City, and Black Hawk. Lawmakers imposed specific limitations on these activities to reduce their potential harmful effects on society.
Commercial casinos in the three cities could only operate from 2:00 am to 8 am, and players could not wager more than $5 per single bet. The gaming venues were further confined to the commercial districts of the listed cities. The Limited Gaming Act also established the Division of Gaming within the Department of Revenue, which became responsible for licensing and supervising authorized commercial casinos.
Amendment 50
In 2008, Amendment 50 introduced several key changes to the Limited Gaming Act. First, it allowed state residents to vote on raising the single-wager limit from $5 to a maximum of $100. It also empowered voters to approve additional table games such as craps and roulette and to extend the operating hours of licensed casinos.
As a result, gaming venues in the state can now serve customers 24 hours a day. Finally, Amendment 50 created the Limited Gaming Control Commission within the Division of Gaming and outlined its membership structure, powers, and duties.
Colorado Compacts with Tribal Nations
In addition to the roughly thirty commercial casinos, the southwest region of the state is home to two casino-style gaming venues located on tribal reservation lands. The primary piece of legislation that governs tribal gambling is the 1988 Indian Gaming Regulatory Act (IGRA). Under this statute, state governments may enter into compacts with federally recognized tribes, allowing them to legally provide gambling games on their reservations.
Ute Mountain Casino was the first Native gaming venue to start operations under the terms of a compact with the Ute Mountain Ute Tribe. The agreement authorizes the tribe to provide Class III gaming on the premises, including blackjack, poker, keno, slot machines, and pari-mutuel wagering.
The second compact is with the Southern Ute Tribe, which offers Class III games at the Sky Ute Casino in Ignacio. The Southern Ute may host craps and roulette in addition to slots, poker, lotteries, keno, and blackjack. Neither tribe is subject to taxation, but IGRA requires them to use gaming revenue for tribal welfare and economic development.
The two tribal businesses are under no obligation to report their profits to state authorities. The compacts remain effective in perpetuity unless the parties involved decide to terminate them. Both sovereign nations have agreed not to exceed the $100 single-wager limit under the Limited Gaming Act. Nevertheless, tribal operators can litigate higher limits at their tables if they deem it appropriate.
The Division of Gaming and the Limited Gaming Control Commission observe compliance with the compact terms on a state level, while the National Indian Gaming Commission is tasked with on-site regulation of Class III tribal licensees in Colorado.
License Types and Requirements
Six types of gaming licenses are available in the Centennial State. Vendor licenses are required for the manufacture, import, sale, and distribution of slot machines within Colorado. Slot machine permits must be renewed every two years. Businesses that wish to operate slot machines on their premises must apply for operator licenses, which are valid for two years. Such businesses may offer only slot machines obtained from licensed manufacturers.
Commercial casinos that offer both slot machines and table games need retail licenses from the local gambling regulator. Individuals employed in the gaming industry must submit applications for support licenses. Separate key employee permits are issued to the people responsible for overseeing gambling activities on the gaming floor.
Finally, associated equipment supplier licenses are issued to individuals who sell, distribute, or import associated gaming equipment in Colorado. For clarification, the term “associated equipment” refers to machines and systems used for monitoring, collecting, and reporting gambling-related transactions. The term does not include gambling devices and equipment like slot machines, card shufflers, or roulette wheels, for instance.
Retail licenses are issued only for specific authorized locations and are non-transferable. However, retail licensees may transfer their operations to another location with the approval of the Limited Gaming Control Commission. The regulator can grant temporary or conditional permits to interested operators.
Background Checks
Renewal, Suspension, and Revocation
Miscellaneous Requirements and Restrictions
Background Checks
All applicants undergo rigorous background checks to determine their suitability. Candidates must demonstrate good moral character and possess sufficient experience in the gaming industry. The regulator may reject applicants with prior convictions for gambling-related offenses, theft, or other misdemeanors.
Candidates whose gaming licenses have been revoked or suspended in other jurisdictions are unlikely to gain the approval of the Limited Gaming Control Commission. Gambling premises owners must also receive certificates of compliance from the local fire and building authorities.
Renewal, Suspension, and Revocation
All of the licenses listed above must be renewed every two years. Applicants whose submissions are rejected may reapply after one year. Those who are turned down twice must wait at least three years after their last rejection. The regulator can revoke or suspend the licenses of operators who fail to comply with licensure terms, and violators may also incur fines ranging from $5,000 to $100,000.
Miscellaneous Requirements and Restrictions
Key employees may not participate in any gambling activities in the establishments where they work. Retail operators are prohibited from employing shills to entice or encourage patrons to gamble. Slot machines must have a theoretical return to player of at least 80%. Table games must be conducted in line with rules approved by state voters, meaning wagers may not exceed $100 per hand or round. Licensed operators and retail casinos are prohibited from extending credit to their customers.
Social Responsibility Policies
Section 44-30-809 of the Colorado Limited Gaming Act prohibits residents under 21 from participating in casino gambling. Underage individuals may not loiter on the gaming floor or sit at the tables without playing. Employees who conduct gambling games must also meet the minimum legal age requirement.
Policies at Commercial Casinos
Policies at Tribal Casinos
Policies at Commercial Casinos
State authorities allocate 2 percent of the tax money collected from commercial casinos to gambling addiction prevention and treatment, an amount that corresponds to approximately $100,000. Gambling operators may serve complimentary alcoholic drinks to customers on the casino floor. The Centennial State does not mandate self-exclusion programs by law, and there are no restrictions on gambling-related advertisements or other marketing materials.
Policies at Tribal Casinos
Tribal gaming operators in some states allow people aged 18 to gamble, but this is not the case in Colorado. The minimum admission age at Sky Ute Casino and Ute Mountain Casino matches that for commercial gaming (21 years old). There are no self-exclusion programs at the two tribal casinos.
Unlike their commercial counterparts, the tribal operators do not offer free alcoholic beverages to players. Patrons who are visibly intoxicated may not participate in gambling activities. The compacts contain no provisions that explicitly impose marketing restrictions, although the Southern Ute compact does prohibit deceptive or false advertising.
Legal Status of Online Casino Gaming
When it comes to remote gambling, only online sports betting and daily fantasy sports enjoy legal status in the Centennial State. Daily fantasy sports received authorization after House Bill 20-1286 passed into law as the Fantasy Contests Act. Operators who provide such contests must register with the Colorado Division of Gaming, which oversees these activities.
Smaller operators with fewer than 7,500 active registrants are subject to yearly audits conducted by third-party testing agencies. All licensees must verify their customers’ identities to ensure they meet the minimum age requirement. Only players aged 18 or older can engage in daily fantasy sports.
Customers also have the option to exclude themselves from participation in the contests. Additionally, the operators must store players’ funds in segregated accounts. A registered player can have no more than one account with each licensed operator. Operators who fail to comply with the regulatory requirements risk civil fines of up to $1,000 per violation under Section 44-30-1611 of the Fantasy Contests Act.
Online casino games are not yet legal in Colorado, but this does not stop Coloradans from playing at offshore websites that carry licenses from other jurisdictions. Such operators are outside the scope of the Colorado Division of Gaming and the Limited Gaming Control Commission. Players who gamble with them often lack consumer protections and have no legal recourse if they fall prey to abuse or fraud.
Colorado Gambling Regulators
The Colorado Division of Gaming (CDG) and the Colorado Limited Gaming Control Commission (CLGCC) are responsible for overseeing the local gambling industry. The two agencies enforce state gambling laws, issue licenses, and collect and distribute tax funds. They work together to preserve the integrity and honesty of the local gaming sector. The CLGCC consists of three commissioners, a chair, and a vice-chair, all of whom are appointed by the Colorado Governor. It has authority over all limited gambling licensees operating within the state.
The law requires the commissioners to come from different professional and political backgrounds. Up to three of the five members can belong to the same political party. CLGCC members can serve no more than two four-year terms. Commission meetings are held each month so members can discuss expenditures, gaming revenue, taxes, and other subjects.
The Division of Gaming oversees registered daily fantasy sports operators in the state. The Division operates as part of the Colorado Department of Revenue and transferred some of its regulatory responsibilities to the CLGCC after the passage of the 1991 Limited Gaming Act. The Division maintains a registry of all licensed DFS operators it supervises. At the time of writing, there are 35 licensees on the list, including major names like DraftKings, FanDuel, and RealTime Fantasy.
Conclusion
Despite the low limits on single bets and other restrictions, Colorado is home to a mature gambling market that generated more than $1.23 billion in gross revenue in 2021 from commercial casinos alone. Gambling operations have a massive impact on the local economy, with sportsbooks bringing in more than $6.6 million to state coffers within their first year of operation. Full-fledged online gaming is not yet legal in the Centennial State, but this does little to prevent Coloradans from playing at offshore online casinos.
Policies at Commercial Casinos
State authorities allocate 2 percent of the tax money collected from commercial casinos to gambling addiction prevention and treatment, an amount that corresponds to approximately $100,000. Gambling operators may serve complimentary alcoholic drinks to customers on the casino floor. The Centennial State does not mandate self-exclusion programs by law, and there are no restrictions on gambling-related advertisements or other marketing materials.