Is Online Poker Legal in Colorado?

Colorado is the 8th largest state in the US, but only the 22nd highest in population (5,268,367 est. 2013) thanks to the immense, undulating landscape of the state’s Rocky Mountain range. As such, tourism is huge business, as is mining production, particularly among the higher elevations. Agriculture supplies another major of income source for the state, along with government facilities and industrial operations. Among the Rocky Mountain State’s most notable revenue generators is also a brimming land-based casino industry.

Unfortunately, online poker does not yet fall into the category of regulated gambling in Colorado. That alone does not make the act of playing real money Texas Holdem over the internet illegal, but it does complicate matters in terms of establishing whether online poker is legal, illegal or in a median grey area of the law.

 

Land-based Gambling in Colorado

The status of land-based gambling establishments can offer a lot of information regarding a state’s acceptance of online wagering activities. There are currently 39 casinos in Colorado contributing to the state’s tax coffers, about half of which promote live poker tables. In the first half of 2014 alone, poker tables across the state have already brought in an AGP of 12.1 million.

Such information tells us that the state has no aversion to gambling, or poker in particular. A quick visit to the Colorado Department of Revenue’s Division of Gaming website does reveal, however, that “Colorado law states no casino can offer for play any blackjack or poker variation game without prior approval of the game by the Colorado Limited Gaming Control Commission”.

 

Deciphering the Laws of Colorado as they relate to Online Poker

In order to determine the true essence of Colorado’s gambling laws in reference to online poker, we’ll list and discuss the meaning of the state’s gambling laws as they may relate to online poker. Fortunately, the Rocky Mountain State’s website is easier to navigate than most and delivers clear, precise meanings to its gambling laws without having to interpret all the typical legal jargon. The Colorado government website states:

What is Legal?

The Colorado Constitution and Colorado law allow only certain types of “gambling.” In addition to limited gaming, the following forms of gambling are legal:

 

  • Colorado Lottery
  • Live and off-track betting on horse and dog racing events
  • Bingo, raffles and charitable games licensed and regulated by the Secretary of State’s office
  • “Social” gambling

 

What does it mean?
The Colorado state lottery, live and off-track betting, bingo, raffles and charitable games are all legal if licensed/authorized by the state. Social poker games, played in a private residence where no one stands to make a profit outside of direct gambling winnings by a player, are also legal.

Internet Gambling

Internet gambling is illegal under state and federal laws. Colorado law prohibits the transmission or reception of gambling information by any means. The federal Unlawful Internet Gambling Enforcement Act, signed into law in October 2006, prohibits online gamblers from using credit cards, checks and electronic fund transfers to place and settle bets. Further, the federal 1961 Wire Act also prohibits the use of wire communications in interstate or foreign commerce for the placing of bets or wagers or information assisting in the placing of bets or wagers.

Unlike participants in legalized forms of gambling, persons who wager on online casinos have no recourse with any state agency should they not be paid for winning wagers or have any other dispute with the entity with which they are placing their bets. Furthermore, players are not guaranteed odds. By statute, slot and video machines in Colorado casinos must pay out between 80 percent and 100 percent. Online casinos are not required to have minimum payouts and are under no form of regulatory control to ensure compliance with any payout controls.

Many online sites advertise they are “legal” and “licensed” forms of wagering. They may be legal or licensed where the bets are received, but it remains illegal to place bets from Colorado with these businesses.

In addition, the Colorado Limited Gaming Control Commission prohibits persons and businesses licensed in the casino industry in Colorado from having any involvement with internet gaming sites that can be accessed by Colorado residents.

 

Getting down to the particulars, the Criminal Code of Colorado, Title 18, Article 10; Gambling states the following:

Section Text Meaning (in re online poker)
18-10-102 Definitions (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…

(c) Other acts or transactions now or hereafter expressly authorized by law;

All forms of gambling, skill-based or otherwise, are illegal unless authorized by the state of Colorado.
18-10-103 Gambling Offenses (1) A person who engages in gambling commits a class 1 petty offense. The maximum penalty for illegal gambling in Colorado is up to 6 months in jail and/or up to $500 fine.

 

Is Online Poker Illegal in Colorado?

Yes, online poker is clearly illegal in Colorado. Although the antiquated text of the Colorado Division of Gaming website refers to the Federal Wire Act of 1961 criminalizing all forms of online wagering – a law that was altered in December of 2011 by the US Department of Justice to exclude online poker and casino gambling – the legislative text still prohibits any form of gambling to be offered in the state unless authorized and licensed by the CDOG. Playing online poker for real money in Colorado could result in a punishment of up to 6 months in jail and/or up to $500 in fines.

 

Is Colorado working to Legalize Online Poker?

Colorado is a likely candidate to pass online poker regulations in the foreseeable future. One attempt was already made in May of 2012 with the drafting of an online poker bill, but it was quickly dropped and has not been picked up since. However, the state has an abundance of land-based casinos and poker rooms. Chances are, the state will eventually indulge in an internet poker market once interstate networking proves viable, or at least when federal online poker regulations are passed.

 

Online Poker Players from Colorado

The first professional online poker players who come to mind are WSOP bracelet winners Jeremy “TheTaker” Ausmus and Kevin “1SickDisease” Eyster. Ausmus has racked up over half a million in online poker tournaments, plus a much more esteemed $4.2 million in live events, while Eyster has earned more than $3 million playing tournaments online. Other notable online poker players from Colorado include Kevin “Phwap” Boudreau and Michael “benza13” Bena.

 

Land-Based Card Rooms in Colorado

Colorado is home to dozens of brick-and-mortar casinos. Due to the sheer abundance of gambling destinations, we’ve listed only those known to proffer poker tables.

Ameristar Casino Resort
Location: Black Hawk, CO
Poker Room: Yes

Brass Ass Casino
Location: Cripple Creek, CO
Poker Room: Yes

Century Casino & Hotel
Location: Central City, CO
Poker Room: Yes

Famous Bonanza Casino
Location: Central City, CO
Poker Room: Yes

Golden Gates Casino
Location: Black Hawk, CO
Poker Room: Yes

Golden Mardi Gras Casino
Location: Black Hawk, CO
Poker Room: Yes

Isle of Capri Hotel Casino
Location: Black Hawk, CO
Poker Room: Yes

Johnny Z’s Casino
Location: Central City, C
Poker Room: Yes

Lady Luck Casino Hotel
Location: Black Hawk, CO
Poker Room: Yes

Lodge Casino at Black Hawk
Location: Black Hawk, CO
Poker Room: Yes

Midnight Rose Hotel & Casino
Location: Cripple Creek, CO
Poker Room: Yes

Reserve Casino Hotel
Location: Central City, CO
Poker Room: Yes

Saratoga Casino
Location: Central City, CO
Poker Room: Yes

Sky Ute Casino
Location: Central City, CO
Poker Room: Yes

Ute Mountain Casino
Location: Towaoc, CO
Poker Room: Yes

Wildwood Casino
Location: Cripple Creek, CO
Poker Room: Yes

Z Casino Black Hawk
Location: Black Hawk, CO
Poker Room: Yes

 

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