![Is gambling illegal in Colorado? 3 things to know [2022 UPDATES IN DESCRIPTION]](https://www.shouselaw.com/wp-content/plugins/wp-youtube-lyte/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2Fny0alHp969s%2F0.jpg)
Colorado Revised Statute § 18-10-103 C.R.S. prohibits unauthorized gambling. The only exceptions are for:
- The Colorado Lottery,
- Licensed sportsbooks,
- Limited gaming in Colorado casinos (Black Hawk, Cripple Creek, and Central City),
- Horse racing events through the Colorado Division of Racing,
- Licensed bingo, raffles, and charitable games, and
- Social gambling.
In Colorado, unlawful gambling is a petty offense, carrying up to 10 days in jail and/or $300. Meanwhile, professional gambling is a class 2 misdemeanor, which carries up to 120 days in jail and/or $750.
In this article, our Denver criminal defense lawyers will address the following key issues regarding unlawful gambling in Colorado:
- 1. “Gambling” Meaning
- 2. Penalties
- 3. Defenses
- 4. Related Offenses
- Frequently Asked Questions
- Additional Reading
1. “Gambling” Meaning
Gambling is:
“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.”
Common examples are poker, blackjack, craps, roulette, and slot machines. Gambling does not include contests of skill, strength, endurance, or speed, such as a
- race,
- sporting competition, or
- carnival games.1
Unlawful gambling is sometimes associated with organized crime and racketeering. The reason the state restrains individuals from participating in these activities is to “safeguard the public against the evils induced by common gamblers and coming gambling houses.”2
What about professional gambling?
Professional gambling is not a term for making a living from, say, playing poker. Instead, it is a term for profiting from unlawful gambling.
Professional gambling means:
- “Aiding or inducing another to engage in gambling, with the intent to derive a profit therefrom; or
- 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.”3
Professional gambling has higher penalties than standard gambling.
What is the social gambling exception?
“Social gambling” – which is lawful – comprises any game, wager, or transaction that is incidental to a bona fide social relationship, participated in by natural persons only, and in which no person is participating in professional gambling.”4
Social gambling may include friends who gather together for a poker night. It may also cover family members who have friendly bets going for who will win the Super Bowl. However, it may not include a poker night that is organized for the purpose of holding a tournament.
A poker game stops being “social gambling” and becomes “professional gambling” if the host takes a “rake” (a percentage of the pot) or charges a “seat fee” to make a profit.
Is gambling allowed for charitable events?
Charitable organizers can lawfully sponsor gaming events at a licensed casino in Colorado. If the charitable organization wants to hold a gaming event outside of the gaming towns, it must ensure the game is not considered illegal gambling.
Charitable gaming events do not qualify under the social gambling exception.
Is internet gambling lawful?
Licensed sports betting is lawful through such platforms as:
Otherwise, according to the Colorado Attorney General and the Limited Gaming Control Commission, internet gambling and telephone sports book betting are unlawful.
Internet gaming is unlawful in Colorado.
2. Penalties
The penalties for participating in unlawful gambling in Colorado depend on the type of activity involved and your criminal history.
Gambling is a petty offense in Colorado, carrying:
- up to 10 days in jail and/or
- up to $300 in fines.5
Meanwhile, professional gambling is a class 2 misdemeanor, with Colorado penalties including:
- up to 120 days in jail and/or
- up to $750 in fines.6
Furthermore, selling, owning, or possessing a gambling device or gambling record is a class 2 misdemeanor in Colorado. Penalties include:
- up to 120 days in jail and/or
- up to $750 in fines.7
In addition to jail time and fines, any gaming devices, records, or proceeds are subject to seizure by police and may be confiscated and destroyed. (Note that you can keep vintage slot machines as long as they are not used for gambling purposes.)8
Finally, unlicensed internet gambling – transmitting gaming information by telephone, telegraph, radio, or other means – is a class 2 misdemeanor carrying up to 120 days in jail and/or $750. You could be charged if you place a bet on your home computer in Colorado, even if the gaming company is based in a place where internet gaming is lawful.9
3. Defenses
In Colorado, gambling generally requires three elements, including:
- consideration,
- chance, and
- a reward.
If any of the elements are not present, the activity may not be considered gambling.
A poker tournament with no fee, buy-in, or payment required from participants is not unlawful. Even if you are participating in a game of chance with prize money awarded to the winners, you did not put up any money to play.
Similarly, a charitable event could include a casino night, provided that money or prizes are not awarded based on the winners. If you are charged a donation or fee to buy in, the charity cannot offer rewards if you win. Prizes could be awarded through a random drawing or raffle, provided the rewards are not directly tied to winning games of chance.
Social gambling is lawful under C.R.S. 18-10-103.
4. Related Offenses
Money Laundering – C.R.S. 18-5-309
Money laundering involves moving money around to try and evade the government’s ability to track the source of the funds. Money laundering may be used to conceal funds obtained through illegal gaming.
Money laundering is a class 3 felony in Colorado, and the penalties include:
- 4 to 12 years in prison and
- fines of up to $750,000.
Racketeering – C.R.S. 18-17-104
Racketeering is a pattern of criminal activity generally committed by gangs or organized crime. This includes:
- gambling,
- loan-sharking,
- fencing stolen property, or
- drug distribution.
Racketeering is a felony, with penalties including:
- up to 24 years in prison and
- a fine of up to $1 million.
Frequently Asked Questions
What happens if I play poker with friends at my house for money?
Playing poker with friends is legal under Colorado’s “social gambling” exception, as long as it is part of a real social relationship and no one is making a profit from hosting the game. However, if the host takes a percentage of the pot (called a “rake”) or charges a fee to play, it becomes illegal professional gambling.
How much trouble can I get in for unlawful gambling in Colorado?
Regular gambling is a petty offense with up to 10 days in jail and/or a $300 fine. Professional gambling (like organizing games for profit) is more serious – it’s a class 2 misdemeanor with up to 120 days in jail and/or a $750 fine. Police can also seize any gambling equipment and winnings.
What types of gambling are actually lawful in Colorado?
Lawful gambling in Colorado includes the state lottery, licensed sportsbooks (like FanDuel and DraftKings), casinos in Black Hawk, Cripple Creek, and Central City, horse racing events, licensed bingo and raffles for charity, and social gambling among friends where no one profits from hosting.
Can I get in trouble for online gambling from my home computer?
Yes, most online gambling is illegal in Colorado except for licensed sports betting platforms. Even if you use a gambling website that’s legal in another state or country, you can still be charged with a class 2 misdemeanor in Colorado, facing up to 120 days in jail and/or a $750 fine.
Additional Reading
For more in-depth information, refer to these scholarly articles:
- Police Regulation of Illegal Gambling: Frustrations of Symbolic Enforcement – The ANNALS of the American Academy of Political and Social Science.
- Fantasy Football: Illegal Gambling or Legal Game of Skill – North Carolina Journal of Law & Technology.
- Illegal gambling on sports: a mediational model of general strain theory – Criminal Justice Studies.
- Defining and estimating the illegal gambling market: A scoping review – Journal of Economic Criminology.
- Illegal gambling businesses & organized crime: an analysis of federal convictions – Trends in Organized Crime.
Legal References
- C.R.S. 18-10-101(1)
- C.R.S. 18-10-102 – Definitions.
As used in this article 10, unless the context otherwise requires:
(1) “Gain” means the direct realization of winnings; “profit” means any other realized or unrealized benefit, direct or indirect, including without limitation benefits from proprietorship, management, or unequal advantage in a series of transactions.
(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:
(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 that 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;
(e) Repealed.
(f) Any use of or transaction involving a crane game, as defined in section 44-30-103 (9); or
(g) Sports betting conducted in accordance with part 15 of article 30 of title 44 and applicable rules of the limited gaming control commission.
(3) “Gambling device” means 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, as defined in section 44-30-103 (9).
(4) “Gambling information” means a communication with respect to any wager made in the course of, and any information intended to be used for, professional gambling. In the application of this definition the following shall be presumed to be intended for use in professional gambling: Information as to wagers, betting odds, or changes in betting odds. Legitimate news reporting of an event for public dissemination is not gambling information within the meaning of this article.
(5) “Gambling premises” means any building, room, enclosure, vehicle, vessel, or other place, whether open or enclosed, used or intended to be used for professional gambling. In the application of this definition, any place where a gambling device is found is presumed to be intended to be used for professional gambling.
(6) “Gambling proceeds” means all money or other things of value at stake or displayed in or in connection with professional gambling.
(7) “Gambling record” means any record, receipt, ticket, certificate, token, slip, or notation given, made, used, or intended to be used in connection with professional gambling.
(8) “Professional gambling” means:
(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.
(9) “Repeating gambling offender” means any person who is convicted of an offense under section 18-10-103 (2) or sections 18-10-105 to 18-10-107 or sections 18-20-103 to 18-20-114 or sections 44-30-809 to 44-30-811 or 44-30-818 to 44-30-831 or 44-30-837, within five years after a previous misdemeanor conviction under these sections or a former statute prohibiting gambling activities, or at any time after a previous felony conviction under any of the mentioned sections. A conviction in any jurisdiction of the United States of an offense which, if committed in this state, would be professional gambling shall warrant a prosecution in this state as a repeating gambling offender.
(10) “Vintage slot machine” means any model slot machine, as defined in section 44-30-103 (30), that was introduced on the market prior to January 1, 1984. - C.R.S. 18-10-102(8).
- C.R.S. 18-10-102(2)(d).
- C.R.S. 18-10-103 – Gambling – professional gambling – offenses.
(1) A person who engages in gambling commits a petty offense.
(2) A person who engages in professional gambling commits a class 2 misdemeanor.Prior to March 1, 2022, gambling was a class 1 petty offense punishable by up to 6 months in jail and/or fines of up to $500. SB21-271. - C.R.S. 18-10-103(2). Prior to March 1, 2022, professional gambling was a class 1 misdemeanor carrying 6 to 18 months in jail and a fine of up to $5,000. SB21-271.
- C.R.S. 18-10-105 – Possession of a gambling device or record.
(1) Except as provided in subsection (1.5) of this section, a person who owns, manufactures, sells, transports, possesses, or engages in any transaction designed to affect the ownership, custody, or use of a gambling device or gambling record, knowing that it is to be used in professional gambling, commits possession of a gambling device or record.
(1.5) The sale, transportation, manufacture, and remanufacture of gambling devices, including the acquisition of essential parts therefor and the assembly of such parts, is permitted if such devices are sold, transported, manufactured, and remanufactured only for transportation in interstate or foreign commerce when such transportation is not prohibited by any applicable foreign, state, or federal law. Storage of gambling devices is also permitted but only for purposes of manufacturing, remanufacturing, and transporting such devices in interstate or foreign commerce when their transportation is not prohibited. Such activities may be conducted only by persons who have registered with the United States government pursuant to the provisions of chapter 24 of Title XV of the United States Code, as amended. Such gambling devices shall not be openly displayed, except to legal buyers, or sold for use in Colorado regardless of where purchased, nor manufactured, remanufactured, or stored for purposes of manufacture, remanufacture, and transportation in violation of any applicable state or federal law. For purposes of this subsection (1.5), “legal buyer” means a buyer who resides in another state or country which does not restrict the possession of the specific gambling device in question.
(2) Possession of a gambling device or record or violation of subsection (1.5) of this section is a class 2 misdemeanor. - C.R.S. 18-10-104 – Gambling devices – gambling records – gambling proceeds.
(1) Except as provided in subsection (2) of this section, all gambling devices, gambling records, and gambling proceeds are subject to seizure by any peace officer and may be confiscated and destroyed by order of a court acquiring jurisdiction. Gambling proceeds shall be forfeited to the state and shall be transmitted by court order to the general fund of the state.
(2) If a gambling device is a vintage slot machine and is not operated for gambling purposes for profit or for business purposes, it shall not be confiscated or destroyed pursuant to subsection (1) of this section. If a gambling device is confiscated and the owner shows that such gambling device is a vintage slot machine and is not used for gambling purposes, the court acquiring jurisdiction shall order such vintage slot machine returned to the person from whom it was confiscated. - C.R.S. 18-10-106 – Gambling information.
(1) 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 2 misdemeanor.
(2) Facilities and equipment furnished by a public utility in the regular course of business, and which remain the property of the utility while so furnished, shall not be seized except in connection with an alleged violation of this article by the public utility and shall be forfeited only upon conviction of the public utility therefor.