Colorado

Colorado Gambling Overview

Colorado is known as ‘The Centennial State.’ Its mountains were once rich in gold deposits, which fueled the state’s economy since 1858. Sadly, today, gold mines have dwindled.

Colorado law CRS 18-10-103 prohibits most forms of gambling with only a few exceptions. These include lotteries, land-based/online sports betting, fantasy sports, commercial casinos (three towns only), two tribal casinos, charity games, pari-mutuels, and horse racing.

Internet gambling is illegal in Colorado, including online casinos, although many offshore casinos continue to accept residents.

Lotteries

The Colorado Lottery falls under the governance and oversight of The Colorado Lottery Commission. State and interstate lottery tickets can only be bought at authorized resellers in Colorado. Mail-in subscriptions and online ticket purchases are not possible.

Fantasy Sports

Colorado law allows Fantasy Sports and Daily Fantasy Sports accessed online and via mobile within the state. This has opened up an opportunity for huge entrants like DraftKings and FanDuel to accept players from Colorado. However, all FS/DFS providers must be licensed and regulated in Colorado with the Division of Gaming in the Department of Revenue.

Charity Games

Colorado does allow a limited number of charitable events involving gambling. These must be held at licensed casinos or outside licensed gaming towns, provided that they are permitted by law. Non-profit organizations must be authorized to provide lotteries, bingos, and raffles, with all proceeds going to charities.

The existing constitutional requirement is for a charity to have existed for five years before obtaining a charitable gaming license.

Horse Racing and Pari-Mutuel

A year after horse & greyhound racing and pari-mutuel racing was legalized, Colorado saw its first live racing event in 1949. Since then, off-track betting and interstate simulcasting have also been legalized. In 2014, greyhound racing became illegal in the state after the last dog track creased operations.

Sports Betting

Since May 1, 2020, sports betting has been legal in Colorado, provided that the operator is authorized and licensed within the state. The law applies to land-based casinos (retail operators) and online (and mobile) operators. This means that offshore operators not licensed in Colorado are illegal.

Land-Based Casinos in Colorado

Commercial casinos were partially legalized in 1991, but only in the three mountain towns of Central City, Cripple Creek, and Black Hawk. At present, there are 28 commercial casinos.

Additionally, 2 tribal casinos in the south-west part of Colorado operate Vegas-style casinos under the Federal Indian Gaming Regulatory Act of 1988.

Land-based casinos may offer slots, sports betting, and table games.

Colorado Gambling History

Legalization of pari-mutuel, horse & greyhound racing through a General Assembly–preferred measure took place in 1948. Since then, there have been several amendments, the biggest of which was in 1991. This is when Senate Bill 91-99 expanded live racing to include interstate simulcasting and off-track betting.

Colorado’s non-profit organizations became legal on November 4, 1958, after an amendment to the Constitution (Colorado Measure 4) was narrowly approved by a margin of 51%-49%.

The Colorado Lottery began on January 24, 1983, offering draws and scratch tickets.

In 1991, Colorado legalized land-based casino gambling, paving the way for commercial casinos in the former mining towns of Black Hawk, Central City, and Cripple Creek.

Four years later, in 1995, the Southern Ute Indian Tribe near Durango and the Ute Mountain Tribe near Cortez signed gaming compacts to setup tribal casinos.

In 2009, further constitutional amendments in Colorado permitted more games (craps and roulette), allowed 24/7 gaming, and increased betting limits to $100.

Fantasy sports regulations went into effect on July 1, 2017.

In 2019, House Bill 19-1327 was passed to legalize sports betting. Regulated sports betting began May 1, 2020, allowing online and land-based sports betting.

In November 2020, Amendment 77 was passed, allowing towns and local lawmakers to hold referendums to decide whether to raise or remove the maximum betting limit of $100. In the following month, all three municipalities opted to remove the limit.

The amendment also allowed new casino games such as keno, baccarat, and pai gow poker.

Colorado Gambling FAQ

Does Colorado have land-based casinos?

Colorado has 28 commercial casinos concentrated in Cripple Creek, Black Hawk, and Central City. Also, there are two tribal casinos located in the south-west of the state (Towaoc & Ignacio).

Are winnings at land-based casinos subject to tax in Colorado?

Yes, gambling winnings must be reported in federal income tax returns.

Does Colorado allow lotteries?

Yes, The Colorado Lottery permits the sale of state and interstate lotteries from authorized resellers. Coloradans may not purchase tickets online.

Is sports betting legal in Colorado?

Sports betting is allowed at online operators provided that they are authorized and licensed in Colorado. Land-based retail operators (commercial and tribal casinos) may also offer sports betting.

What forms of gambling in Colorado are legal?

Colorado has legalized commercial and tribal casinos, lotteries, social gaming, pari-mutuels, racing, sports betting, and charity games.