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Home » News & Blog » A Guide to Legal Gambling in Colorado

A Guide to Legal Gambling in Colorado

February 21, 2024 William Mcmaster

It’s no secret that the nature of gambling regulations in the US varies from state to state, with some states legalizing all forms of gambling, others legalizing some types, and some states not allowing any form of gambling at all. The state of Colorado falls into the second of the three gambling legalization categories listed above.

Staying updated on which states allow some or all types of gambling and which states don’t could be a lot to keep up with, but it also could be the difference between gambling at a safe online casino and gambling at one that’s illegal and unlicensed. 

The first step to figuring out Colorado’s gambling laws is knowing what the state defines gambling as. Going by the constitution of the Rocky Mountain State, “risking money or any other thing of value for gain contingent in whole or part upon lot, chance, or the happening or outcome of an event over which the person taking a risk has no control.” (FindLaw, 2016)

According to Colorado Law, gambling at the Colorado Lottery is one form of gambling that is legal, alongside limited gaming in Colorado casinos in Central City, Cripple Creek, Black Hawk, and on Indian reservation land. The constitution always allows gambling on live and off-track horse racing events under the Colorado Division of Gaming, bingos, and raffles licensed and regulated under the Secretary of State’s office, sports betting, as well as what the law deems as “social” gambling. (Specialized Business Group, Colorado Department of Revenue, 2021)

colorado

Internet Gaming in Colorado

In 2005, the office of the Attorney General released an official statement which claimed that online gambling fell under all the already existing gambling laws in the state. That means, technically, online gambling is not allowed in Colorado. Residents of the state can still access gambling sites based offshore, though. Placing wagers on those sites and sportsbooks is considered illegal, even if they are legal and licensed in the places where they are set up.

A policy set up by the Colorado Limited Gaming Control Commission restricts businesses and people licensed in Colorado’s casino industry from being involved in any way with any offshore internet gaming site that can be accessed by residents of the state. 

While online gambling is classified as illegal in Colorado, no one has ever been arrested for casual gambling at any online gambling sites. This is mostly because much of the law in the state focuses on illegal gambling businesses and professional gambling, as opposed to casual gaming customers. 

The state recommends that players stay away from gambling not only because it is illegal, but because there are no state regulatory controls that can guarantee that games are conducted fairly and that children are prevented from accessing gambling sites. Participants who get locked in disputes and complaints over payments with online casinos or telephone sportsbooks can take no benefits or resolutions from state agencies.

colorado

Sports Betting in Colorado

May 2020 saw Colorado become one of the US states that offered legal sports betting after voters approved legislative referral Proposition DD (House Bill 1327). Colorado Proposition DD, the Legalize Sports Betting with Tax Revenue for Water Projects Measure, was passed in 2019 after recording a narrow 51 percent – 48 percent win at state ballots.

The bill authorized sports betting while also levying a 10 percent tax on proceeds made by sports betting operators in the state. Proposition DD’s success at the ballots meant that casino properties in the state could apply for online and retail sports betting licenses from the Colorado Gaming Control Commission.

Despite a slow start caused by the global pandemic, the sports betting market in Colorado grew steadily after its launch, recording a total of $2.3 billion in wagers after one year. That figure was released by the Colorado Division of Gaming, and it put the state behind only New Jersey and Illinois for total sports wagers after the first 12 months of operations. The absence of in-person registration restrictions and in-state college sports betting in the Centennial State has made it one of the most attractive legal sports betting states in the country.

How to Take Part in Colorado Gambling

Your gambling options in Colorado include anyone of the following:

  • Limited casino gaming at casino properties in gaming towns. (Black Hawk, Central City, and Cripple Creek.)
  • State Lottery. 
  • Live and off-track horse racing. 
  • Licensed bingo and raffle games. 

Residents of the state can also take part in poker tournaments as long as those activities fall under the social gambling umbrella. Regulated sports betting in Colorado launched in May 2020. 

Sources

  1. FindLaw, 2016 – https://statelaws.findlaw.com/colorado-law/colorado-gambling-laws.html
  2. Specialized Business Group, Colorado Department of Revenue, 2021.  – https://sbg.colorado.gov/what-is-legal-gambling-questions-in-colorado
  3. Colorado Department of Law and Attorney General’s Office News Release, 2005. – https://sbg.colorado.gov/sites/sbg/files/Illegal%20Gambling%20Activities%20News%20Release.pdf

Filed Under: Uncategorized Tagged With: Law, Sports Betting, Sportsbooks, US Casino News, US Casinos, US Online Gambling, USA


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