After making some changes to House Bill 1234, the Colorado House voted 43-22 to send the bill to Governor John Hickenlooper for his signature. The bill, which previously passed the Senate, will close a loophole that led to the spread of internet cafés by clarifying the definition of gambling machines as game of chance, which are outlawed by the state constitution except in Cripple Creek, Black Hawk and Central City. The Mountain Ute and Southern Ute tribes also operate casinos.
Arcade owners said the “simulated gambling devices” are legal games of skill, like those offered at Chuck E. Cheese’s and Dave & Buster’s, which offer prizes to players. Colorado Skill Games & Entertainment Association Executive Director Chris Howes said, “There is no payout unless the player takes action and shows skill.” He accused the casino industry of trying to shut down “mom-and-pop” operations like those he represents. Also, he stated police in Denver, Evans, Colorado Springs and Delta have overreached, raiding several arcades in recent months.
State Senator Daniel Kagan agreed. He said, “What the people who are opposed to House Bill 1234 have experienced is an interpretation of the law that declared them to be criminals, seizure of their equipment, in some cases destruction of their equipment and the arrest of some of the operators.”
But attorney Mark Grueskin, representing the Colorado Gaming Association, said, “These are 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.” He noted the games operate without paying taxes to local governments.
One of the bill’s sponsors, state Senator Bob Gardner, said, “There are arcades out there that use devices that under the Colorado constitution are defined as gambling. If there is a beef about these so-called games of skill outside of the areas of limited gaming, your problem is with the constitution of Colorado. Apparently the law, as clear as it is to me, is not as clear to some. Apparently some people can be confused. House Bill 1234 really enables and enacts the constitution, and that’s all it really does.”
Colorado lawmakers in 2015 passed a measure targeting establishments that defined so-called internet sweepstakes games as a form of illegal gambling. But last year a judge in El Paso ruled the law was constitutionally vague. The new law changes that statute.
