Colorado Bill Would Clarify ‘Skill Games’

Colorado law enforcement officials trying to stamp out gambling that is masquerading as skill games could get a new weapon in their battle. A new bill that would spell out the differences between skill games and gambling is working its way through the legislature.

A bill in the Colorado legislature would clarify what a “skill game” is and what is an illegal gambling game. Many state lawmakers have been trying for years to stamp out the latter in a game somewhat reminiscent of whack-a-mole.

House Bill 1234 called “Internet Sweepstakes Café Revise Legal Terms,” has painted a target on machines that claim to offer skill games, but which look and act remarkably like the slot machines found in casinos.
It was voted out of the Business, Labor & Technology committee unanimously. If passed in the House, it would be forwarded to the Senate.

No matter what a machine is called, if the customer pays cash and can win cash through skill, luck or both, the proposed law would consider it to be gambling.

Last month police in Evans and Colorado Bureau of Investigation agents raided a skill games arcade in the town. El Paso District Attorney Dan May said that similar operations advertise that you can win large amounts of cash.

Similar raids have been conducted in Denver, Colorado Springs and Delta.

“It’s clear that they sell opportunities to gamble. As we know, gambling is heavily regulated in Colorado and any new gambling locations must be approved by a vote of the people. No such vote has taken place,” said May.

Currently the only places where casinos are allowed are the mountain towns of Cripple Creek, Black Hawk and Central City.

Mark Grueslon, an attorney representing the Colorado Gaming Association, testified before the committee last week and called the arcade games, “slot machines.” “They are mini-casinos. But they are not licensed by the state, they are not licensed by their city, they are not licensed by anybody.”

The Colorado Skill Games & Entertainment Association defends the machines and the arcade owners. Chris Howes, executive director of the association, told lawmakers “There is no payout unless the player takes action and shows skill.” He accused casino owners of trying to drive small time operations out of business.

One such owner, Tammy Garamova, testified “We’ve done everything we could do to be good actors,” and described how she and her husband were arrested and lost hundreds of thousands of dollars in seized equipment.

A previous law passed in 2015 that tried to address skill games was deemed too vague by a judge in El Paso County. The new law draws on bead on games that offer cash prizes of $25 or more and is written especially to not go after games like those offered in Dave and Buster’s and Chuck E. Cheese’s.