![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%2FAYDRHsnJT4M%2F0.jpg)
CRS § 18-10-103 is the Colorado statute that prohibits unauthorized gambling. The only exceptions are for:
- social gambling,
- the lottery,
- certain licensed gaming, and
- horse racing as regulated by the Colorado Division of Racing.
CRS § 18-10-103 states:
(1) A person who engages in gambling commits a petty offense.
(2) A person who engages in professional gambling commits a class 2 misdemeanor.
In this article, our Denver Colorado criminal defense lawyers will address:
Social gambling is legal under CRS 18-10-103.
1. When is gambling legal?
Colorado limits legal gambling to:
- The Colorado Lottery
- 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
- Social gambling
Gambling is defined as:
“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.”1
Gambling does not include contests of skill, strength, endurance, or speed, such as a
- race,
- sporting competition, or
- carnival games.
Illegal 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 illegal 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 legal – 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 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.
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 legal?
According to the Colorado Attorney General and the Limited Gaming Control Commission, internet gambling and telephone sports book betting are illegal. Under C.R.S. 18-10-106, transmitting gaming information by
- telephone,
- telegraph,
- radio, or
- other means
is a class 2 misdemeanor.
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 legal.
Internet gaming is illegal in Colorado.
2. Penalties
The penalties for participating in illegal 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
Professional gambling is a class 2 misdemeanor, with penalties including
- up to 120 days in jail and/or
- up to $750 in fines.6
Selling, owning, or possessing a gambling device or gambling record is a class 2 misdemeanor. 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.8
3. Defenses
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 or buy-in or no payment required from participants is not illegal. 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 have a casino night as long as money or prizes are not 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 based on a random drawing or raffle as long as the rewards are not directly related to winning the games of chance.
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 hide money that was gained from 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.
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(2)
- C.R.S. 18-10-102(8)
- C.R.S. 18-10-102(2)(d)
- C.R.S. 18-10-103(1). 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. Prior to March 1, 2022, class 2 misdemeanors carried 3 to 12 months in jail and/or a fine of up to $1,000. SB21-271. HB23-1293.
- C.R.S. 18-10-104