Basis and Purpose. The statutory
authority for this regulation includes, but is not limited to, subsections
18-10-102(2),
18-10-102(3),
18-10.5-102(2),
18-10.5-102 (3.5), 18-10.5-102(6),
44-3-202(1)(b), 44-3-202(2)(a)(I)(M), 44-3-901(6)(n), and 44-30-103(30)(a),
C.R.S. The purpose of this regulation is to clarify and define prohibited and
permitted activities, games, and equipment on the licensed premises concerning
gambling.
A. Activities prohibited.
1. No person licensed under Article 3,
Article 4 or Article 5 of Title 44 to sell at retail shall authorize or permit
on the licensed premises any gambling, or use of any gambling machine or
device, or the use of any machine which may be used for gambling, or the use of
any simulated gambling device, except as specifically authorized for a
racetrack, pursuant to Article 32 of Title 44, C.R.S., or for limited gaming,
pursuant to Article 30 of Title 44, C.R.S.
2. No person licensed under Article 3,
Article 4 or Article 5 of Title 44 shall authorize or permit on the licensed
premises the holding of any lottery, except as authorized by Article 40 of
Title 44, C.R.S., and any rules and regulations promulgated thereunder. Nothing
in this regulation shall be deemed to prohibit the conducting of games of
chance authorized by the bingo and raffles law (Part 6 of Article 21 of Title
24, C.R.S.).
B. Equipment
prohibited.
1. No person licensed under
Article 3, Article 4 or Article 5 of Title 44 to sell at retail shall
authorize, permit or possess on the licensed premises any table, machine,
apparatus or device of a kind normally used for the purpose of gambling, or a
simulated gambling device, except as specifically authorized and when licensed
for limited gaming, pursuant to Article 30 of Title 44 C.R.S. Prohibited
equipment shall include video poker machines and other devices, defined either
as slot machines pursuant to section
44-30-103(30)(a),
C.R.S., gambling devices, and simulated gambling devices.
C. Equipment permitted.
1. Nothing in this regulation shall be deemed
to prohibit the use of bona fide amusement devices, such as pinball machines or
pool tables, provided however that such devices do not and cannot be adjusted
to pay anything of value, and that such devices are not used for
gambling.
2. A licensee is
permitted to conduct, on its licensed premises, tournaments or competitions
involving games of skill as permitted by subsection
18-10-102(2)(a),
C.R.S., including the awarding of prizes or other things of value to
participants, in connection with the use or operation of devices such as and
including, but not limited to:
a. Pool
tables
b. Billiard tables
c. Pinball machines
d. Foosball machines
e. Basketball games
f. Air hockey games
g. Shuffleboard games
h. Dart games
i. Bowling games
j. Golf Games
3. Licensees will not be considered in
violation of this regulation if they permit, on their licensed premises, card
or similar games of chance to be played between natural persons whereas no
person is engaging in gambling.
D. Inspections and records.
1. Licensees shall keep a complete set of
records, including operating manuals, concerning any game machine or device
maintained on their licensed premises. Licensees that do not own their machines
or devices shall be required to maintain a copy of their current contract with
the vendor. This contract at a minimum shall detail the division of profits
between the parties and how monies will be accounted for, including the payment
of any monies, credits, or any other thing of value to customers of the
licensee. Copies of any outstanding notes or loans between the parties must
also be maintained by the licensee.
2. Licensees shall make available without
delay to agents of the state or local licensing authority access to the
interiors of any machine or device or simulated gambling device, maintained
upon the licensed premises to assist in the determination of whether or not
said machine or device is permitted or prohibited equipment.
E. Definitions
1. For purposes of this rule, "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),
C.R.S.
2. For purposes of this
rule, "simulated gambling device" means a mechanically or electronically
operated machine, network, system, program, or device that is used by an
entrant and that displays simulated gambling displays on a screen or other
mechanism at a business location, including a private club, that is owned,
leased, or otherwise possessed, in whole or in part, by a person conducting the
game or by that person's partners, affiliates, subsidiaries, agents, or
contractors; except that the term does not include bona fide amusement devices,
as authorized in section
44-3-103(47),
that pay nothing of value, cannot be adjusted to pay anything of value, and are
not used for gambling.
a. "Simulated gambling
device" includes:
i. A video poker game or
any other kind of video card game;
ii. A video bingo game;
iii. A video craps game;
iv. A video keno game;
v. A video lotto game;
vi. A video roulette game;
vii. A pot-of-gold;
viii. An eight-liner;
ix. A video game based on or involving the
random or chance matching of different pictures, words, numbers, or
symbols;
x. An electronic gaming
machine, including a personal computer of any size or configuration that
performs any of the functions of an electronic gaming machine;
xi. A slot machine, where results are
determined by reason of the skill of the player or the application of the
element of chance, or both, as provided by section 9(4)(c) of article XVIII of
the Colorado constitution; and
xii.
A device that functions as, or simulates the play of, a slot machine, where
results are determined by reason of the skill of the player or the application
of the element of chance, or both, as provided by section 9(4)(c) of article
XVIII of the Colorado constitution.
b. "Simulated gambling device" does not
include any pari-mutuel totalisator equipment that is used for pari-mutuel
wagering on live or simulcast racing events and that has been approved by the
director of the division of racing events for entities authorized and licensed
under article 32 of title 44.
3. For purposes of this rule, "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. Any
use of or transaction involving a crane game, as defined in section
44-30-103(9);
or
f. Sports betting conducted in
accordance with part 15 of article 30 of title 44 and applicable rules of the
limited gaming control commission.