First Regular Session
Seventy-second General Assembly

STATE OF COLORADO

INTRODUCED
HOUSE BILL 19-1327

LLS NO. 19-0030.03 Duane Gall x4335

HOUSE SPONSORSHIP
Garnett and Neville, Roberts, Van Winkle

SENATE SPONSORSHIP
Donovan and Cooke, Priola

House Committees

Senate Committees

Finance

A BILL FOR AN ACT
101

CONCERNING

SPORTS BETTING, AND, IN CONNECTION THEREWITH,

102

SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF

103

COLORADO A BALLOT MEASURE AUTHORIZING THE COLLECTION

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OF A TAX ON THE NET PROCEEDS OF SPORTS BETTING THROUGH

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LICENSED CASINOS AND DIRECTING THE REVENUES GENERATED

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THROUGH COLLECTION OF THE SPORTS BETTING TAX TO

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SPECIFIED PUBLIC PURPOSES, INCLUDING THE STATE WATER

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PLAN

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IMPLEMENTATION CASH FUND.

THROUGH

CREATION

OF

THE

WATER

PLAN

Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.

 applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
In 2018, the United States supreme court held in Murphy v.
National Collegiate Athletic Association, 138 S. Ct. 1461, that a federal
law prohibiting states from authorizing sports betting violated the tenth
amendment of the United States constitution. States may now authorize
sports betting.
The bill decriminalizes sports betting in Colorado, effective May
1, 2020, under the following conditions:
!
The collection of a tax on the net proceeds of sports betting
must be approved by the registered electors of Colorado at
the November 2019 general election;
!
Sports betting will be regulated by the department of
revenue, subject to supervision by the existing limited
gaming control commission;
!
A limited number of licenses will be issued. Persons or
entities currently licensed to conduct limited gaming (i.e.,
the owners of casinos in Central City, Black Hawk, and
Cripple Creek) are the only persons or entities eligible to
hold a "master license" to conduct sports betting upon
paying a license fee and submitting to background checks.
A master license entitles the licensee to contract with a
licensed "sports betting operator" or a licensed "internet
sports betting operator", or both, for the operation of sports
betting; and
!
The state will collect a tax of 10% on the net proceeds of
sports betting activity to fund implementation of the state
water plan and other public purposes.

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Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 44-30-102, add (3)
as follows:
44-30-102. Legislative declaration. (3) THE GENERAL ASSEMBLY
FURTHER FINDS, DETERMINES, AND DECLARES THAT:

6

(a) WHEN, IN 2018, THE UNITED STATES SUPREME COURT HELD IN

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MURPHY V. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, 138 S. CT.

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1461, THAT

THERE EXISTED NO CURRENT FEDERAL IMPEDIMENT TO AN

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HB19-1327

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INDIVIDUAL STATE'S AUTHORITY TO LEGALIZE SPORTS BETTING, BUT THAT

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SUCH AN EFFORT WAS SUBJECT ONLY TO THAT STATE'S OWN

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CONSTITUTIONAL LIMITS ON THAT AUTHORITY,

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OPTION TO EXPAND THE RESPONSIBILITIES OF THE LIMITED GAMING

5

CONTROL COMMISSION CREATED IN THIS ARTICLE 30 TO INCLUDE SPORTS

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BETTING;

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COLORADO

HAD THE

OF THE COMMISSION'S ROLE IN THIS WAY IS

(b) EXPANSION

8

APPROPRIATE, GIVEN THE COMMISSION'S EXPERIENCE IN REGULATING

9

LIMITED GAMING SINCE

1992

AND ITS TRACK RECORD OF COMPETENT,

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EVENHANDED, AND EFFICIENT DISCHARGE OF THE DUTIES ENTRUSTED TO

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IT BY COLORADO'S VOTERS UNDER SECTION 9 OF ARTICLE XVIII OF THE

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STATE CONSTITUTION;

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(c) THE

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HOUSE BILL 19-____,

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BETTING SEAMLESSLY INTO THE REGULATORY AND TAXING SYSTEM

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ESTABLISHED FOR LIMITED GAMING UNDER THIS ARTICLE 30 IN A MANNER

17

THAT HONORS THE VOTERS' INTENT IN ADOPTING SECTION 9 OF ARTICLE

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XVIII

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ENACTMENT OF A REFERRED MEASURE REQUIRING STATEWIDE APPROVAL;

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(d) IT IS APPROPRIATE, AND THE GENERAL ASSEMBLY INTENDS,

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THAT AFTER THE INCORPORATION OF SPORTS BETTING INTO THIS ARTICLE

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30 ON MAY 1, 2020, NO FURTHER EXPANSION OF SPORTS BETTING NOR

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AUTHORIZATION OF ANY NEW OR EXPANDED CLASS OF LICENSEES BE MADE

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EXCEPT WITH THE APPROVAL OF

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LEGISLATION OR CONSTITUTIONAL AMENDMENTS THAT ARE SUBMITTED TO

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A STATEWIDE VOTE; AND

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GENERAL ASSEMBLY INTENDS, THROUGH PASSAGE OF
ENACTED IN

2019,

TO INCORPORATE SPORTS

OF THE STATE CONSTITUTION AND HAS DONE SO THROUGH

COLORADO

VOTERS THROUGH

(e) THE SUCCESS OF SPORTS BETTING IS DEPENDENT UPON PUBLIC

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HB19-1327

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CONFIDENCE AND TRUST THAT ACTIVITIES RELATED TO SPORTS BETTING

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ARE CONDUCTED HONESTLY AND COMPETITIVELY; THAT THE RIGHTS OF

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THE CREDITORS OF LICENSEES ARE PROTECTED; AND THAT SPORTS BETTING

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IS FREE FROM CRIMINAL AND CORRUPTIVE ELEMENTS. PUBLIC CONFIDENCE

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AND TRUST CAN BE MAINTAINED ONLY BY STRICT REGULATION OF SPORTS

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BETTING.

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8
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SECTION 2. In Colorado Revised Statutes, 44-30-103, amend
(5) and (17); and add (32.5) as follows:
44-30-103. Definitions. As used in this article 30, unless the
context otherwise requires:
(5) "Bet" means an amount placed as a wager in a game of chance
OR ON A SPORTS EVENT, AS DEFINED IN SECTION 44-30-1501 (12).

(17) "Key employee" means any executive, employee, or agent of

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a gaming licensee

15

exercise a significant influence over decisions concerning any part of the

16

operation of a THE gaming licensee OR SPORTS BETTING LICENSEE.

OR SPORTS BETTING LICENSEE

having the power to

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(32.5) "SPORTS BETTING" MEANS PLACING ONE OR MORE BETS IN

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A SPORTS BETTING OPERATION, AS DEFINED IN SECTION 44-30-1501 (10).

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SECTION 3. In Colorado Revised Statutes, amend 44-30-104 as

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21

follows:
44-30-104. Limited gaming - sports betting - authorization -

22

regulation. Limited gaming is

23

authorized and may be operated and maintained subject to the provisions

24

of this article 30. All limited gaming AND SPORTS BETTING authorized by

25

this article 30 shall be regulated

26

Colorado limited gaming control commission.

27

AND SPORTS BETTING ARE

IS SUBJECT TO REGULATION

hereby

by the

SECTION 4. In Colorado Revised Statutes, amend 44-30-201 as

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HB19-1327

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follows:

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44-30-201. Division of gaming - creation - repeal. (1) There is

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hereby created, within the department, the division of gaming, the head

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of which shall be IS the director of the division of gaming. The director

5

shall be

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executive director. The division of gaming, the Colorado limited gaming

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control commission created in section 44-30-301, and the director of the

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division of gaming shall exercise their respective powers and perform

9

their respective duties and functions as specified in this article 30 under

10

the department as if the same THEY were transferred to the department by

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a type 2 transfer, as the transfer is defined in the "Administrative

12

Organization Act of 1968", article 1 of title 24; except that the

13

commission shall have

14

rules related to limited gaming AND SPORTS BETTING without any approval

15

by, or delegation of authority from, the department. NOTWITHSTANDING

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ANY PROVISION OF THIS SUBSECTION

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BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT THE

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2019 STATEWIDE ELECTION APPROVE THE BALLOT QUESTION SUBMITTED

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PURSUANT TO SECTION

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19-____.

IS

appointed by, and shall be

HAS

IS

subject to removal by, the

full and exclusive authority to promulgate

44-30-1514,

(1)

TO THE CONTRARY, SPORTS

ENACTED IN

2019

IN

NOVEMBER

HOUSE BILL

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(2) (a) THE COMMISSION MAY ADOPT TEMPORARY OR EMERGENCY

22

RULES, OR BOTH, AND MAY ACCEPT LICENSE APPLICATIONS, BEFORE MAY

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1, 2020, IN ANTICIPATION OF THE

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UNDER PART 15 OF THIS ARTICLE 30.

AUTHORIZATION OF SPORTS BETTING

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(b) THIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2020.

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SECTION 5. In Colorado Revised Statutes, amend 44-30-202 as

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follows:

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HB19-1327

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44-30-202. Functions of division - repeal. (1) The function

2

FUNCTIONS

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supervise the conduct IN THIS STATE of:

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5

ARE

to license, implement, regulate, and

(a) Limited gaming in this state as authorized by section 9 of
article XVIII of the state constitution; AND

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7

of the division is

(b) (I) SPORTS

BETTING AS AUTHORIZED BY PART

15

OF THIS

ARTICLE 30.

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(II) THIS SUBSECTION (1)(b) IS REPEALED, EFFECTIVE SEPTEMBER

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1, 2020, IF THE VOTERS AT THE NOVEMBER 2019 STATEWIDE ELECTION DO

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NOT APPROVE THE QUESTION DESCRIBED IN SECTION 44-30-1514 AND THE

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GOVERNOR ISSUES AN OFFICIAL DECLARATION OF THE VOTE THEREON.

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(2) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

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CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

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THE

15

QUESTION SUBMITTED PURSUANT TO SECTION

16

2019 IN HOUSE BILL 19-____.

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18

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

44-30-1514, ENACTED IN

SECTION 6. In Colorado Revised Statutes, 44-30-203, amend
(2) introductory portion, (2)(a), (2)(f), (2)(h), and (2)(k) as follows:

19

44-30-203. Director - qualification - powers and duties. (2) In

20

addition to the duties imposed upon the director elsewhere in this part 2

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AND IN PART 15 OF THIS ARTICLE 30,

the director shall:

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(a) Supervise and administer the operation of the division, and

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limited gaming, AND SPORTS BETTING in accordance with the provisions

24

of this article 30 and the rules of the commission;

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(f) Advise the commission and recommend to the commission any

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rules and other procedures as the director deems necessary and advisable

27

to improve the operation of the division and the conduct of limited

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HB19-1327

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gaming OR SPORTS BETTING;

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(h) Make a continuous study and investigation of the operation

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and the administration of similar laws that may be in effect in other states

4

or countries; of any literature on gaming OR SPORTS BETTING that from

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time to time may be published or available; and of any federal laws that

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may affect the operation of the division, the conduction

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limited gaming OR SPORTS BETTING, or the reaction of Colorado citizens

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to limited gaming OR SPORTS BETTING with a view to recommending or

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effecting changes that would serve the purposes of this article 30;

CONDUCT

of

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(k) Take any action as may be determined by the commission to

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be necessary to protect the security and integrity of limited gaming OR

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SPORTS BETTING;

and

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SECTION 7. In Colorado Revised Statutes, 44-30-204, amend

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(1) introductory portion, (1)(a), (1)(b), (1)(d), (1)(e), (1)(f), and (1)(g) as

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follows:

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44-30-204. Investigator - peace officers. (1) All investigators of

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the division of gaming, and their supervisors, including the director and

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the executive director, shall have all the powers of any peace officer to:

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(a) Make arrests, with or without warrant, for any violation of the

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provisions of this article 30, article 20 of title 18, or the rules promulgated

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pursuant to this article 30, any other laws or rules pertaining to the

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conducting CONDUCT of limited gaming OR SPORTS BETTING in this state,

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or any criminal law of this state, if, during an officer's exercise of powers

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or performance of duties under this section, probable cause is established

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that a violation of any said law or rule has occurred;

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(b) Inspect, examine, investigate, hold, or impound any premises

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where limited gaming OR SPORTS BETTING is conducted, any devices or

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HB19-1327

 1

equipment designed for or used in limited gaming OR SPORTS BETTING,

2

and any books and records in any way connected with any limited gaming

3

OR SPORTS BETTING

activity;

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(d) Serve all warrants, notices, summonses, or other processes

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relating to the enforcement of laws regulating limited gaming OR SPORTS

6

BETTING;

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8

(e) Serve distraint warrants issued by the department pertaining
to limited gaming OR SPORTS BETTING;

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(f)

Conduct investigations into the character, record, and

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reputation of all applicants for limited gaming

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licenses, all licensees, and any other persons as the commission may

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determine pertaining to limited gaming OR SPORTS BETTING;

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OR SPORTS BETTING

(g) Investigate violations of all the laws pertaining to limited

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gaming,

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BOTH;

SPORTS BETTING,

and limited gaming activities

RELATED TO

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SECTION 8. In Colorado Revised Statutes, 44-30-302, amend

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(1)(a), (1)(d), (1)(f), (1)(h), (1)(j), (1)(n)(I), (1)(p), (1)(s), (1)(u), (2)

18

introductory portion, (2)(a), (2)(b), (2)(c), (2)(d), (2)(e), (2)(f), (2)(r), and

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(2)(s); and add (3) as follows:

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44-30-302. Commission - powers and duties - rules. (1) In

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addition to any other powers and duties set forth in this part 3, and

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notwithstanding the designation of the Colorado limited gaming control

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commission under section 44-30-201 as a type 2 transfer, the commission

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shall nonetheless have the following powers and duties:

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(a) To promulgate the rules governing the licensing, conducting,

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and operating of limited gaming

27

necessary to carry out the purposes of this article 30. The director shall

AND SPORTS BETTING

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as it deems

HB19-1327

 1

prepare and submit to the commission written recommendations

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concerning proposed rules for this purpose.

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(d) To conduct a continuous study and investigation of limited

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gaming

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ascertaining any defects in this article 30 or in the rules promulgated

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pursuant to this article 30 in order to discover any abuses in the

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administration and operation of the division or any violation of this article

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30 or any rule promulgated pursuant to this article 30;

AND SPORTS BETTING

throughout the state for the purpose of

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(f) To report immediately to the governor, the attorney general,

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the speaker of the house of representatives, the president of the senate, the

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minority leaders of both houses, and any other state officers as the

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commission deems appropriate concerning any laws that it determines

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require immediate amendment to prevent abuses and violations of this

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article 30 or any rule promulgated pursuant to this article 30 or to remedy

15

undesirable conditions in connection with the administration or the

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operation of the division, or limited gaming, OR SPORTS BETTING;

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(h) To issue temporary or permanent licenses to those involved in

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the ownership, participation, or conduct of limited gaming

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BETTING;

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OR SPORTS

(j) To establish and collect fees and taxes upon persons, licenses,

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and gaming devices used in, or participating in, limited gaming

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SPORTS BETTING;

OR

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(n) (I) Except as otherwise provided in subsection (1)(n)(II) of this

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section, to inspect and examine without notice all premises wherein IN

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WHICH

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devices or equipment used in limited gaming

27

located, manufactured, sold, or distributed, and to summarily seize,

limited gaming

OR SPORTS BETTING

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is conducted or

WHERE

THOSE ACTIVITIES

are

HB19-1327

 1

remove, and impound, without notice or hearing, from the premises any

2

equipment, devices, supplies, books, or records for the purpose of

3

examination or inspection.

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(p) To exercise any other incidental powers as may be necessary

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to ensure the safe and orderly regulation of limited gaming AND SPORTS

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BETTING and the secure collection of all revenues, taxes, and license fees;

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(s) To establish and collect fees for performing, or having

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performed, tests on equipment and devices to be used in limited gaming

9

OR SPORTS BETTING;

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(u) To demand, at any time when business is being conducted,

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access to and inspection, examination, photocopying, and auditing of all

12

papers, books, and records of applicants and licensees, on their premises

13

or elsewhere as practicable and in the presence of the licensee or his or

14

her THE LICENSEE'S agent, pertaining to the gross income produced by any

15

licensed gaming establishment and OR ACTIVITY LICENSED UNDER THIS

16

ARTICLE

17

affecting the enforcement of the policies of the commission or any

18

provision of this article 30; and to impound or remove all papers, books,

19

and records of applicants and licensees, without hearing, for inspection

20

or examination; and

21

30; to require verification of income, and all other matters

(2) Rules promulgated pursuant to subsection (1) of this section

22

shall

23

following:

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25

MUST

include, but shall not be limited to

AT A MINIMUM,

the

(a) The types of limited gaming AND SPORTS BETTING activities to
be conducted and the rules for those activities;

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(b) The requirements, qualifications, and grounds for the issuance,

27

revocation, suspension, and summary suspension of all types of

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HB19-1327

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permanent and temporary licenses required for the conduct of limited

2

gaming OR SPORTS BETTING;

3
4

(c) Qualifications of persons to hold limited gaming OR SPORTS
BETTING

5
6

licenses;

(d) Restrictions upon the times, places, and structures where
limited gaming shall be OR SPORTS BETTING ARE authorized;

7

(e) The ongoing operation of limited gaming OR SPORTS BETTING

8

activities,

9

ACCOUNTING SYSTEMS USED IN CONNECTION WITH LIMITED GAMING OR

10

INCLUDING THE TESTING AND APPROVAL OF SOFTWARE OR

SPORTS BETTING;

11

(f) The scope and conditions for investigations and inspections

12

into the conduct of limited gaming OR SPORTS BETTING, the background

13

of licensees and applicants for licenses, the premises where limited

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gaming is OR SPORTS BETTING ARE authorized, all premises where gaming

15

devices are located, the books and records of licensees, and the sources

16

and maintenance of limited gaming

17

equipment;

18
19

devices and

(r) The conditions and circumstances that constitute suitability of
persons, locations, and equipment for gaming OR SPORTS BETTING;

20
21

OR SPORTS BETTING

(s) The types and specifications of all equipment and devices used
in or with limited gaming OR SPORTS BETTING; and

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(3) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

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CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

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THE

25

QUESTION SUBMITTED PURSUANT TO SECTION

26

2019 IN HOUSE BILL 19-____.

27

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

44-30-1514, ENACTED IN

SECTION 9. In Colorado Revised Statutes, 44-30-701, amend

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HB19-1327

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(1)(a), (1)(b)(I), and (1)(b)(II); and add (3) as follows:

2

44-30-701. Limited gaming fund - created. (1) There is hereby

3

created in the office of the state treasurer the limited gaming fund. The

4

fund shall be maintained and operated as follows:

5

(a) EXCEPT

AS SPECIFIED IN PART

15

OF THIS ARTICLE

30, all

6

revenues of the division shall be paid into the limited gaming fund.

7

EXCEPT FOR THOSE EXPENSES RELATED TO SPORTS BETTING AS SPECIFIED

8

IN PART

9

commission, including the expenses of investigation and prosecution

10

15

OF THIS ARTICLE

30, all expenses of the division and the

relating to limited gaming, shall be paid from the fund.

11

(b) (I) All money paid into the limited gaming fund shall be

12

available immediately, without further appropriation, for the purposes of

13

the fund. From the money in the limited gaming fund, the state treasurer

14

is hereby authorized to pay all ongoing expenses of the commission, the

15

department, the division, and any other state agency from whom

16

assistance related to the administration of this article 30 is requested by

17

the commission, director, or executive director, EXCEPT THOSE EXPENSES

18

RELATED TO SPORTS BETTING, AS SPECIFIED IN PART 15 OF THIS ARTICLE

19

30. The payment shall be made upon proper presentation of a voucher

20

prepared by the commission in accordance with other statutes governing

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payments of liabilities incurred on behalf of the state. The payment shall

22

not be conditioned on any appropriation by the general assembly. Receipt

23

of the payment shall constitute spending authority by the division of

24

gaming in the department.

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(II) EXCEPT AS SPECIFIED IN PART 15 OF THIS ARTICLE 30:

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(A) No claim for the payment of any expense of the commission,

27

department, division, or other state agency shall be made unless it is

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HB19-1327

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against the limited gaming fund; AND

2
3

(B) No other money of the state shall be used or obligated to pay
the expenses of the division or commission.

4

(3) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

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CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

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THE

7

QUESTION SUBMITTED PURSUANT TO SECTION

8

2019 IN HOUSE BILL 19-____.

9
10

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

44-30-1514, ENACTED IN

SECTION 10. In Colorado Revised Statutes, 44-30-705, amend
(3) as follows:

11

44-30-705. Attorney general - duties. (3) Expenses of the

12

attorney general incurred in the performance of the responsibilities under

13

this section shall be paid from the limited gaming fund; EXCEPT THAT ANY

14

SUCH EXPENSES RELATED TO SPORTS BETTING UNDER PART

15

ARTICLE

16

NOTWITHSTANDING

17

CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

18

THE

19

QUESTION SUBMITTED PURSUANT TO SECTION

20

2019 IN HOUSE BILL 19-____.

21
22

30

15 OF THIS

SHALL BE PAID FROM THE SPORTS BETTING FUND.
ANY PROVISION OF THIS SUBSECTION

NOVEMBER 2019

(3)

TO THE

STATEWIDE ELECTION APPROVE THE BALLOT

44-30-1514, ENACTED IN

SECTION 11. In Colorado Revised Statutes, add part 15 to
article 30 of title 44 as follows:

23

PART 15

24

SPORTS BETTING

25

44-30-1501. Definitions - rules. DEFINITIONS APPLICABLE TO THIS

26

PART 15 ALSO APPEAR IN SECTION 44-30-103 AND ARTICLE 1 OF THIS TITLE

27

44. AS USED IN THIS PART 15, UNLESS THE CONTEXT OTHERWISE REQUIRES:

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HB19-1327

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2
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(1) "CASINO"

MEANS A LICENSED GAMING ESTABLISHMENT AS

DEFINED IN SECTION 44-30-103 (18).

(2)

"COLLEGIATE

SPORTS EVENT" MEANS A SPORTS EVENT

4

OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR

5

PRIVATE INSTITUTION THAT OFFERS EDUCATIONAL SERVICES BEYOND THE

6

SECONDARY LEVEL.

7

(3) "FANTASY

SPORTS ACTIVITY" MEANS THE CONDUCT OF, OR

8

PARTICIPATION IN, A FANTASY CONTEST AS DEFINED IN SECTION

9

12-15.5-102 (4).

10

(4) "INTERNET

SPORTS BETTING OPERATION" MEANS A SPORTS

11

BETTING OPERATION IN WHICH WAGERS ON SPORTS EVENTS ARE MADE

12

THROUGH A COMPUTER OR MOBILE OR INTERACTIVE DEVICE AND

13

ACCEPTED BY AN INTERNET SPORTS BETTING OPERATOR.

14

(5) "INTERNET

SPORTS BETTING OPERATOR" MEANS A PERSON

15

LICENSED BY THE COMMISSION TO OPERATE AN INTERNET SPORTS BETTING

16

OPERATION.

17

(6) "MASTER LICENSE" MEANS A SPORTS BETTING LICENSE, ISSUED

18

BY THE COMMISSION PURSUANT TO SECTION

44-30-1505 (1)(a),

19

AUTHORIZES THE LICENSEE TO EITHER CONDUCT SPORTS BETTING AND

20

INTERNET SPORTS BETTING ITSELF OR CONTRACT WITH A SPORTS BETTING

21

OPERATOR, AN INTERNET SPORTS BETTING OPERATOR, OR BOTH, TO

22

CONDUCT SPORTS BETTING.

THAT

23

(7) "NET SPORTS BETTING PROCEEDS" MEANS THE TOTAL AMOUNT

24

OF ALL BETS PLACED BY PLAYERS IN A SPORTS BETTING OPERATION OR

25

INTERNET SPORTS BETTING OPERATION, EXCLUDING FREE BETS, LESS ALL

26

PAYMENTS TO PLAYERS AND LESS ALL EXCISE TAXES PAID PURSUANT TO

27

FEDERAL LAW. PAYMENTS TO PLAYERS INCLUDE ALL PAYMENTS OF CASH

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HB19-1327

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PREMIUMS, MERCHANDISE, OR ANY OTHER THING OF VALUE.

2

(8) "PROHIBITED SPORTS EVENT" MEANS:

3

(a) A HIGH SCHOOL SPORTS EVENT;

4

(b) A

5

GOVERNING BODY AS AN ELECTRONIC COMPETITION; AND

6
7

(c) ONLY

WITH RESPECT TO PROPOSITION BETS, A COLLEGIATE

SPORTS EVENT.

(9) "SPORTS

8
9

VIDEO GAME THAT IS NOT SANCTIONED BY A SPORTS

BETTING LICENSE" MEANS ANY OF THE LICENSES

SPECIFIED IN SECTION 44-30-1505 (1).

10

(10) "SPORTS BETTING OPERATION" MEANS A LICENSED WAGERING

11

OPERATION IN WHICH BETS ARE PLACED ON SPORTS EVENTS THROUGH ANY

12

SYSTEM OR METHOD OF WAGERING, INCLUDING SINGLE-GAME BETS,

13

TEASER BETS, PARLAYS, OVER-UNDER, MONEYLINE, POOLS, EXCHANGE

14

WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS OTHER

15

THAN THOSE RELATING TO COLLEGIATE SPORTS EVENTS, OR STRAIGHT

16

BETS.

17

(11) "SPORTS

BETTING OPERATOR" MEANS A PERSON THAT IS

18

LICENSED TO OPERATE A SPORTS BETTING OPERATION IN WHICH

19

CUSTOMERS PLACE BETS IN PERSON AT A DESIGNATED PHYSICAL

20

LOCATION.

21

(12) (a) "SPORTS EVENT" MEANS:

22

(I) ANY INDIVIDUAL OR TEAM SPORT OR ATHLETIC EVENT IN WHICH

23

THE OUTCOME IS NOT DETERMINED SOLELY BY CHANCE, WHETHER

24

AMATEUR OR PROFESSIONAL, INCLUDING AN OLYMPIC OR INTERNATIONAL

25

SPORT OR ATHLETIC EVENT AND ANY COLLEGIATE SPORTS EVENT;

26
27

(II) ANY
SUBSECTION

PORTION OF A SPORT OR ATHLETIC EVENT LISTED IN

(12)(a)(I)

OF THIS SECTION, INCLUDING THE INDIVIDUAL

-15-

HB19-1327

 1

PERFORMANCE STATISTICS OF ATHLETES IN A SPORTS EVENT OR

2

COMBINATION OF SPORTS EVENTS;

3
4
5
6

(III) A

SANCTIONED MOTOR SPORT, AS AUTHORIZED BY THE

COMMISSION BY RULE; AND

(IV) ANY

OTHER SPORTS EVENT OR COMBINATION OF SPORTS

EVENTS AS AUTHORIZED BY THE COMMISSION BY RULE.

7

(b) "SPORTS EVENT" DOES NOT

8

EVENT OR A FANTASY SPORTS ACTIVITY.

INCLUDE A PROHIBITED SPORTS

9

(13) "SPORTS GOVERNING BODY" MEANS AN ORGANIZATION THAT

10

PERFORMS A REGULATORY OR SANCTIONING FUNCTION OVER THE

11

CONDUCT OF A SPORTS EVENT.

12

44-30-1502. Conflict of interest - participants in sports or

13

athletic events. (1) THE

14

OWNERSHIP INTEREST IN, CONTROL OF, OR OTHERWISE BE EMPLOYED BY

15

A SPORTS BETTING OPERATOR, A LICENSEE, OR A FACILITY IN WHICH

16

SPORTS BETTING TAKES PLACE OR PLACE A WAGER ON A SPORTS EVENT

17

THAT IS OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY BASED ON

18

PUBLICLY AVAILABLE INFORMATION:

FOLLOWING PERSONS SHALL NOT HAVE ANY

19

(a) AN ATHLETE, COACH, REFEREE, EMPLOYEE, OR DIRECTOR OF:

20

(I) A SPORTS GOVERNING BODY THAT SANCTIONS OR GOVERNS A

21
22
23

SPORTS EVENT ON WHICH BETS ARE PLACED; OR

(II) ANY TEAM THAT IS A MEMBER TEAM IN A SPORTS GOVERNING
BODY DESCRIBED IN SUBSECTION

(1)(a)(I) OF THIS SECTION.

24

(b) A SPORTS GOVERNING BODY OR ANY OF ITS MEMBER TEAMS;

25

(c)

AN

AGENT, UNION, OR UNION REPRESENTATIVE THAT

26

ADVOCATES FOR PLAYERS, REFEREES, OR OTHER PERSONNEL INVOLVED

27

WITH THE CONDUCT OF A SPORTS EVENT;

-16-

HB19-1327

 1

(d)

A

PERSON WHO HOLDS A POSITION OF AUTHORITY OR

2

INFLUENCE SUFFICIENT TO EXERT INFLUENCE OVER THE PARTICIPANTS IN

3

A SPORTS EVENT, INCLUDING COACHES, MANAGERS, AND ATHLETIC

4

TRAINERS;

5

(e) A PERSON WITH ACCESS TO NONPUBLIC INFORMATION ON ANY

6

SPORTS EVENT OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY,

7

WHICH INFORMATION PERTAINS TO OR COULD AFFECT OR INFLUENCE THE

8

PERFORMANCE OF ANY TEAM, COACH, OR PARTICIPANT IN THE SPORTS

9

EVENT; OR

10

(f) A PERSON IDENTIFIED BY THE SPORTS GOVERNING BODY TO THE

11

DIVISION OR THE COMMISSION FOR PURPOSES OF ESTABLISHING ACTUAL OR

12

POTENTIAL CONFLICTS OF INTEREST.

13

(2) THE DIRECT OR INDIRECT LEGAL OR BENEFICIAL OWNER OF TEN

14

PERCENT OR MORE OF A SPORTS GOVERNING BODY OR ANY OF ITS MEMBER

15

TEAMS SHALL NOT PLACE OR ACCEPT ANY WAGER ON A SPORTS EVENT IN

16

WHICH ANY MEMBER TEAM OF THAT SPORTS GOVERNING BODY

17

PARTICIPATES.

18

(3) THE PROHIBITIONS SET FORTH IN THIS SECTION DO NOT APPLY

19

TO A SPORTS GOVERNING BODY, A MEMBER TEAM OF A SPORTS GOVERNING

20

BODY, OR A PERSON WHO IS A DIRECTOR OR A DIRECT OR INDIRECT OWNER

21

OF A SPORTS GOVERNING BODY OR MEMBER TEAM OF A SPORTS

22

GOVERNING BODY:

23
24

(a) WHO

HOLDS LESS THAN TEN PERCENT DIRECT OR INDIRECT

OWNERSHIP INTEREST IN A CASINO OR SPORTS BETTING OPERATION; OR

25

(b) WHOSE SPORTS BETTING OPERATION PROHIBITS ANY WAGERING

26

ON THE OWNER'S TEAM OR PLAYERS OR THE SPORTS GOVERNING BODY'S

27

SPORTS EVENTS.

-17-

HB19-1327

 1

44-30-1503. Licenses - rules. (1) (a) THE COMMISSION SHALL

2

ISSUE, SUSPEND, REVOKE, AND RENEW SPORTS BETTING LICENSES

3

PURSUANT TO SUBSECTION (3) OF THIS SECTION AND RULES ADOPTED BY

4

THE COMMISSION.

5

REQUIREMENTS RELATING TO THE FINANCIAL RESPONSIBILITY OF THE

6

LICENSEE, THE LICENSEE'S SOURCE OF REVENUE FOR ITS SPORTS BETTING

7

OPERATIONS, THE CHARACTER OF THE LICENSEE, THE TRUSTWORTHY

8

OPERATION OF THE SPORTS BETTING ACTIVITY SOUGHT TO BE LICENSED,

9

AND OTHER MATTERS NECESSARY TO PROTECT THE PUBLIC INTEREST AND

10

TRUST IN SPORTS BETTING. SUSPENSION IS LIMITED TO CIRCUMSTANCES IN

11

WHICH THE LICENSEE'S ACTIONS APPEAR CONTRARY TO THE PUBLIC

12

INTEREST OR TEND TO UNDERMINE PUBLIC TRUST IN THE INTEGRITY OF

13

SPORTS BETTING.

14
15
16
17
18
19
20
21
22

THE COMMISSION'S LICENSING RULES MUST INCLUDE

(b) THE COMMISSION'S RULES MUST REQUIRE THAT LICENSES BE
PROMINENTLY DISPLAYED IN AREAS VISIBLE TO THE PUBLIC.

(2) (a) A LICENSE SHALL BE REVOKED UPON A FINDING THAT THE
LICENSEE HAS:

(I) PROVIDED

MISLEADING INFORMATION TO THE DIVISION OR

COMMISSION;

(II) BEEN CONVICTED OF A FELONY OR ANY GAMBLING-RELATED
OFFENSE;

(III)

BECOME

A PERSON WHOSE CHARACTER IS NO LONGER

23

CONSISTENT WITH THE PROTECTION OF THE PUBLIC INTEREST AND TRUST

24

IN SPORTS BETTING; OR

25

(IV) INTENTIONALLY REFUSED TO PAY A PRIZE IN THE LICENSEE'S

26

POSSESSION TO A PERSON ENTITLED TO RECEIVE THE PRIZE UNDER THIS

27

PART 15.

-18-

HB19-1327

 1
2
3
4
5
6
7
8

(b) A LICENSE MAY BE SUSPENDED, REVOKED, OR NOT RENEWED
FOR ANY OF THE FOLLOWING CAUSES:

(I) A DELINQUENCY IN REMITTING MONEY RIGHTFULLY OWED TO
PLAYERS, CONTRACTORS, OR OTHERS INVOLVED IN SPORTS BETTING;

(II) FAILURE TO ENSURE THE TRUSTWORTHY OPERATION OF SPORTS
BETTING; OR

(III) ANY INTENTIONAL VIOLATION OF THIS PART 15 OR ANY RULE
ADOPTED PURSUANT TO THIS PART 15.

9

(3) PROCEDURES FOR ISSUANCE, SUSPENSION, REVOCATION, AND

10

RENEWAL OF LICENSES MUST BE IN ACCORDANCE WITH ARTICLE 4 OF TITLE

11

24, AND THE COMMISSION HAS ALL THE POWERS AND IS SUBJECT TO ALL

12

THE REQUIREMENTS OF ARTICLE

13

HEARINGS RELATING TO GRANTING, SUSPENDING, REVOKING, OR

14

RENEWING LICENSES.

4

OF TITLE

24

IN CONDUCTING ANY

15

(4) LICENSEES MAY INCLUDE INDIVIDUALS, FIRMS, ASSOCIATIONS,

16

OR CORPORATIONS, WHETHER FOR PROFIT OR NONPROFIT, BUT THE

17

FOLLOWING ARE INELIGIBLE FOR A LICENSE UNDER THIS PART 15:

18
19
20
21

(a)

A

PERSON

WHO

HAS

BEEN

CONVICTED

OF

A

GAMBLING-RELATED OFFENSE, NOTWITHSTANDING SECTION 24-5-101;

(b) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR
GAMBLING PROMOTER;

22

(c) A PERSON WHO HAS ENGAGED IN BOOKMAKING OR ANY OTHER

23

FORM OF ILLEGAL GAMBLING, INCLUDING ANY SPORTS BETTING OPERATION

24

WHOSE WAGERING ACTIVITIES DID NOT RESULT IN PROSECUTION BUT THAT

25

THE COMMISSION FINDS VIOLATED STATE OR FEDERAL LAW;

26
27

(d) A PERSON WHO IS NOT OF GOOD CHARACTER AND REPUTATION,
NOTWITHSTANDING SECTION

24-5-101, IN THE COMMUNITY WHERE THE

-19-

HB19-1327

 1
2
3
4

PERSON RESIDES;

(e) A PERSON WHO HAS BEEN CONVICTED OF A CRIME INVOLVING
MISREPRESENTATION, NOTWITHSTANDING SECTION 24-5-101;

(f) A FIRM OR CORPORATION IN WHICH A PERSON DESCRIBED IN

5

SUBSECTIONS

6

EQUITABLE, OR CREDIT INTEREST OF TEN PERCENT OR MORE;

7

(g)

(4)(b)

AN

TO

(4)(e)

OF THIS SECTION HAS A PROPRIETARY,

ORGANIZATION IN WHICH A PERSON DESCRIBED IN

8

SUBSECTIONS (4)(b) TO (4)(e) OF THIS SECTION IS AN OFFICER, DIRECTOR,

9

OR MANAGING AGENT, WHETHER COMPENSATED OR NOT; OR

10

(h)

AN

ORGANIZATION IN WHICH A PERSON DESCRIBED IN

11

SUBSECTIONS (4)(b) TO (4)(e) OF THIS SECTION IS TO PARTICIPATE IN THE

12

MANAGEMENT OR PROMOTION OF SPORTS BETTING.

13

(5) IN ADDITION TO THE PERSONS SPECIFIED IN SUBSECTION (4) OF

14

THIS SECTION AS INELIGIBLE FOR A LICENSE, THE COMMISSION MAY

15

DETERMINE THE FOLLOWING TO BE INELIGIBLE FOR A LICENSE UNDER THIS

16

PART 15:

17
18

(a) A PERSON WHO HAS BEEN CONVICTED OF A FELONY OR A CRIME
INVOLVING FRAUD, NOTWITHSTANDING SECTION 24-5-101;

19

(b) A FIRM OR CORPORATION IN WHICH A PERSON DESCRIBED IN

20

SUBSECTION (5)(a) OF THIS SECTION HAS A PROPRIETARY, EQUITABLE, OR

21

CREDIT INTEREST OF TEN PERCENT OR MORE;

22

(c)

AN

ORGANIZATION IN WHICH A PERSON DESCRIBED IN

23

SUBSECTION

24

MANAGING AGENT, WHETHER COMPENSATED OR NOT; OR

25

(d)

(5)(a)

AN

OF THIS SECTION IS AN OFFICER, DIRECTOR, OR

ORGANIZATION IN WHICH A PERSON DESCRIBED IN

26

SUBSECTION

(5)(a)

27

MANAGEMENT OR PROMOTION OF SPORTS BETTING.

OF THIS SECTION IS TO PARTICIPATE IN THE

-20-

HB19-1327

 1

(6) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

2

CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

3

THE

4

QUESTION SUBMITTED PURSUANT TO SECTION

5

2019 IN HOUSE BILL 19-____.

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

44-30-1514, ENACTED IN

6

44-30-1504. Disclosure of information by corporate applicants

7

- license required - investigation - criminal history record check -

8

rules - definition. (1) CORPORATE APPLICANTS FOR A SPORTS BETTING

9

LICENSE AND LICENSEES SHALL DISCLOSE TO THE COMMISSION, IN A FORM

10
11
12

AND MANNER DETERMINED BY THE COMMISSION, THE IDENTITY OF:
BOARD-APPOINTED OFFICER OF THE APPLICANT OR

(a) EACH
LICENSEE;

13

(b) EACH DIRECTOR OF THE APPLICANT OR LICENSEE;

14

(c)

EACH

PERSON WHO DIRECTLY HOLDS ANY VOTING OR

15

CONTROLLING INTEREST OF TEN PERCENT OR MORE, IN THE CASE OF A

16

SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS BETTING

17

OPERATOR LICENSE, OR OF ANY PERCENTAGE, IN THE CASE OF A MASTER

18

LICENSE, OF THE SECURITIES ISSUED BY THE APPLICANT OR LICENSEE;

19

(d) EACH

PERSON WHO DIRECTLY HOLDS ANY NONVOTING OR

20

PASSIVE OWNERSHIP INTEREST OF TWENTY-FIVE PERCENT OR MORE OF THE

21

SECURITIES ISSUED BY THE APPLICANT OR LICENSEE;

22
23
24
25
26
27

(e) EACH HOLDING, INTERMEDIARY, OR SUBSIDIARY COMPANY OF
THE APPLICANT OR LICENSEE; AND

(f) EACH

LENDER FROM WHICH THE APPLICANT OR LICENSEE

CURRENTLY HAS AN OUTSTANDING LOAN.

(2)

AS

TO EACH HOLDING, INTERMEDIARY, OR SUBSIDIARY

COMPANY OF AN APPLICANT FOR A SPORTS BETTING LICENSE OR A

-21-

HB19-1327

 1

LICENSEE, THE APPLICANT OR LICENSEE SHALL ESTABLISH AND MAINTAIN

2

THE QUALIFICATIONS OF:

3
4
5
6
7

(a)

EACH

BOARD-APPOINTED OFFICER OF THE HOLDING,

INTERMEDIARY, OR SUBSIDIARY COMPANY;

(b)

EACH

DIRECTOR OF THE HOLDING, INTERMEDIARY, OR

SUBSIDIARY COMPANY;

(c)

EACH

PERSON WHO DIRECTLY HOLDS ANY VOTING OR

8

CONTROLLING INTEREST OF TEN PERCENT OR MORE, IN THE CASE OF A

9

SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS BETTING

10

OPERATOR LICENSE, OR OF ANY PERCENTAGE, IN THE CASE OF A MASTER

11

LICENSE, OF THE SECURITIES ISSUED BY THE HOLDING, INTERMEDIARY, OR

12

SUBSIDIARY COMPANY;

13

(d) EACH

PERSON WHO DIRECTLY HOLDS ANY NONVOTING OR

14

PASSIVE OWNERSHIP INTEREST OF TWENTY-FIVE PERCENT OR MORE IN THE

15

HOLDING, INTERMEDIARY, OR SUBSIDIARY COMPANY; AND

16
17

(e) EACH LENDER FROM WHICH THE HOLDING, INTERMEDIARY, OR
SUBSIDIARY COMPANY CURRENTLY HAS AN OUTSTANDING LOAN.

18

(3) THE COMMISSION OR THE DIVISION MAY WAIVE ANY OR ALL OF

19

THE QUALIFICATION REQUIREMENTS FOR ANY PERSON LISTED IN

20

SUBSECTION (1) OR (2) OF THIS SECTION.

21

(4) ALL PERSONS EMPLOYED DIRECTLY IN GAMBLING-RELATED

22

ACTIVITIES CONDUCTED BY A LICENSEE OR APPLICANT FOR A SPORTS

23

BETTING LICENSE, WHETHER IN A CASINO, IN A SPORTS BETTING OPERATION

24

OR INTERNET SPORTS BETTING OPERATION, OR IN ANY OTHER CAPACITY,

25

MUST BE LICENSED UNDER THIS PART

26

LICENSEE MAY BE REQUIRED TO HOLD SUPPORT LICENSES, IF APPROPRIATE,

27

IN ACCORDANCE WITH RULES OF THE COMMISSION PROMULGATED IN

-22-

15. OTHER

EMPLOYEES OF A

HB19-1327

 1

CONSULTATION WITH THE DIVISION.

2

(5) A

MASTER LICENSEE SHALL DESIGNATE ONE OR MORE KEY

3

EMPLOYEES TO BE RESPONSIBLE FOR THE OPERATION OF THE SPORTS

4

BETTING OPERATION.

5

THE PREMISES WHENEVER SPORTS BETTING IS CONDUCTED.

AT LEAST ONE SUCH KEY EMPLOYEE SHALL BE ON

6

(6) THE APPLICANT FOR A SPORTS BETTING LICENSE MUST SUBMIT

7

TO AND PAY THE COSTS OF ANY INVESTIGATION INTO THE BACKGROUND OF

8

AN APPLICANT.

9

PURSUANT TO SECTION 44-30-204.

THE

DIVISION MAY CONDUCT THE INVESTIGATION

10

(7) (a) EACH APPLICANT FOR A SPORTS BETTING LICENSE, WITH THE

11

SUBMISSION OF THE APPLICATION, SHALL SUBMIT A SET OF FINGERPRINTS

12

TO THE DIVISION.

THE DIVISION SHALL FORWARD THE FINGERPRINTS TO

13

THE

COLORADO

BUREAU OF INVESTIGATION FOR THE PURPOSE OF

14

CONDUCTING A STATE AND NATIONAL FINGERPRINT-BASED CRIMINAL

15

HISTORY RECORD CHECK UTILIZING RECORDS OF THE COLORADO BUREAU

16

OF INVESTIGATION AND THE FEDERAL BUREAU OF INVESTIGATION. ONLY

17

THE ACTUAL COSTS OF THE RECORD CHECK SHALL BE BORNE BY THE

18

APPLICANT.

19

FROM MAKING FURTHER INQUIRIES INTO THE BACKGROUND OF THE

20

APPLICANT.

NOTHING IN THIS SUBSECTION (7) PRECLUDES THE DIVISION

21

(b) FOR PURPOSES OF THIS SUBSECTION (7), "APPLICANT" MEANS

22

AN INDIVIDUAL OR EACH OFFICER OR DIRECTOR OF A FIRM, ASSOCIATION,

23

OR CORPORATION THAT IS APPLYING FOR A SPORTS BETTING LICENSE

24

PURSUANT TO THIS SECTION.

25

(8) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

26

CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

27

THE

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

-23-

HB19-1327

 1

QUESTION SUBMITTED PURSUANT TO SECTION

2

2019 IN HOUSE BILL 19-____.

44-30-1514, ENACTED IN

3

44-30-1505. License classifications - number of licenses -

4

designated sports betting operators - qualifications - rules. (1) THE

5

COMMISSION

6

CLASSIFICATIONS OF SPORTS BETTING LICENSES IN ADDITION TO ANY

7

LICENSE CLASSIFICATIONS THE COMMISSION CHOOSES TO AUTHORIZE IN

8

ACCORDANCE WITH SECTION 44-30-1504 (4):

9

SHALL

ISSUE

AT

LEAST

THE

FOLLOWING

THREE

(a) MASTER LICENSE;

10

(b) SPORTS BETTING OPERATOR; AND

11

(c) INTERNET SPORTS BETTING OPERATOR.

12

(2) (a) (I) THE COMMISSION MAY ISSUE A MASTER LICENSE, UPON

13

THE APPLICANT'S PAYMENT OF ANY REQUIRED FEES AND COMPLIANCE

14

WITH ALL OTHER REQUIREMENTS OF THIS PART 15, TO A PERSON THAT:

15
16
17

(A) HOLDS

AND, ON OR BEFORE

MAY 1, 2020,

GAMING LICENSE AS DESCRIBED IN SECTION 44-30-501

(B) HAS

HELD A RETAIL

(1)(c); OR

OBTAINED A RETAIL GAMING LICENSE THROUGH THE

18

PURCHASE, APPROVED BY THE COMMISSION, OF AN OWNERSHIP INTEREST

19

IN ONE OR MORE CASINOS THAT WERE OPERATING ON MAY 1, 2020. EACH

20

OWNER OF AN INTEREST SO ACQUIRED, OR, IN THE CASE OF MULTIPLE

21

OWNERS OR ENTITIES, THE REPRESENTATIVE ENTITY FOR THE OWNERS OR

22

ENTITIES, IS NOT ELIGIBLE FOR MORE THAN ONE MASTER LICENSE.

23

(II) THE PURCHASE OF AN EXISTING

OWNERSHIP INTEREST IN A

24

CASINO REQUIRING THE ISSUANCE OF A NEW RETAIL GAMING LICENSE DOES

25

NOT PROHIBIT THE TRANSFER OF AN EXISTING MASTER LICENSE WITH THE

26

OWNERSHIP INTEREST.

27

(III) A

MASTER LICENSEE IS REQUIRED TO CONDUCT SPORTS

-24-

HB19-1327

 1

BETTING ON ITS PREMISES IN ACCORDANCE WITH THIS PART 15.

2
3

(IV) A MASTER LICENSE EXPIRES TWO YEARS AFTER THE DATE OF
ISSUANCE.

4

(b) (I) A SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS

5

BETTING OPERATOR LICENSE ENTITLES THE LICENSEE TO CONTRACT WITH

6

A MASTER LICENSEE FOR THE PURPOSE OF OPERATING A SPORTS BETTING

7

OPERATION OR INTERNET SPORTS BETTING OPERATION, AS APPLICABLE.

8

EACH

9

SPORTS BETTING OPERATOR AND ONE INTERNET SPORTS BETTING

10

OPERATOR AT THE SAME TIME. A MASTER LICENSEE MAY CONTRACT WITH

11

THE SAME ENTITY TO PROVIDE THE SERVICES OF A SPORTS BETTING

12

OPERATOR AND AN INTERNET SPORTS BETTING OPERATOR.

13

MASTER LICENSEE SHALL CONTRACT WITH NO MORE THAN ONE

(II) AN INTERNET SPORTS BETTING OPERATOR MAY PROVIDE ONLY

14

ONE

15

ACCOMPANYING MOBILE APPLICATION THAT MUST BEAR THE SAME UNIQUE

16

BRAND AS THE WEBSITE FOR AN INTERNET SPORTS BETTING OPERATION.

17

AN INTERNET SPORTS BETTING OPERATION SHALL NOT BE OPENED TO THE

18

PUBLIC, AND, EXCEPT FOR TEST PURPOSES, SPORTS BETTING SHALL NOT BE

19

CONDUCTED IN THE INTERNET SPORTS BETTING OPERATION UNTIL THE

20

INTERNET SPORTS BETTING OPERATOR RECEIVES ITS LICENSE AND THE

21

COMMISSION APPROVES ITS CONTRACT WITH THE MASTER LICENSEE IN

22

ACCORDANCE WITH SUBSECTION (3) OF THIS SECTION.

23

INDIVIDUALLY

(c) A

BRANDED

WEBSITE,

WHICH

MAY

HAVE

AN

PERSON MAY HOLD BOTH A SPORTS BETTING OPERATOR

24

LICENSE AND AN INTERNET SPORTS BETTING OPERATOR LICENSE.

25

COMMISSION SHALL DETERMINE BY RULE THE DISTINCTIONS AND SPECIFIC

26

QUALIFICATIONS

27

QUALIFICATIONS AS TO THE TIME, PLACE, AND MANNER OF ACCEPTING

APPLICABLE

TO

-25-

THESE

LICENSES ,

THE

INCLUDING

HB19-1327

 1

WAGERS AND OF VERIFYING THE IDENTITY OF PERSONS SEEKING TO PLACE

2

WAGERS.

3

(3) A CONTRACT BETWEEN TWO OR MORE LICENSEES LISTED IN

4

SUBSECTION

(1) OF THIS SECTION MUST BE SUBMITTED IN ADVANCE TO,

5

AND IS SUBJECT TO APPROVAL BY, THE DIVISION IN ACCORDANCE WITH

6

RULES OF THE COMMISSION.

7

(4) THE FEE FOR ISSUANCE OR RENEWAL OF A LICENSE LISTED IN

8

SUBSECTION (1) OF THIS SECTION IS AS SPECIFIED BY THE COMMISSION BY

9

RULE IN AN AMOUNT SUFFICIENT TO RECOVER THE COMMISSION'S DIRECT

10

AND INDIRECT COSTS OF PROCESSING THE APPLICATION AND CONDUCTING

11

BACKGROUND INVESTIGATIONS,

12

TWENTY-FIVE THOUSAND DOLLARS.

NOT

TO

EXCEED ONE

HUNDRED

13

(5) (a) A SPORTS BETTING OPERATION OTHER THAN AN INTERNET

14

SPORTS BETTING OPERATION MUST BE OPERATED IN A DESIGNATED AREA

15

WITHIN A CASINO, SUBJECT TO ALL REQUIREMENTS CONCERNING DESIGN,

16

EQUIPMENT, SECURITY MEASURES, AND RELATED MATTERS ESTABLISHED

17

BY THE COMMISSION BY RULE, AND MAY OFFER SPORTS BETTING ON ANY

18

SPORTS EVENT AUTHORIZED UNDER RULES OF THE COMMISSION.

19

(b) ALL SPORTS BETTING LICENSES MUST SPECIFY THE PORTION OF

20

THE LICENSEE'S PREMISES LOCATED WITHIN THE CITY OF

CENTRAL, THE

21

CITY OF

22

BETTING WILL TAKE PLACE. THE COMMISSION SHALL NOT REQUIRE SPORTS

23

BETTING TO BE CONDUCTED WITHIN A CASINO'S DESIGNATED GAMING

24

AREA AS AUTHORIZED BY THE COMMISSION BY RULE, BUT ANY SPORTS

25

BETTING CONDUCTED OUTSIDE OF A CASINO'S DESIGNATED GAMING AREA

26

MUST BE CONDUCTED ONLY BY A LICENSED INTERNET SPORTS BETTING

27

OPERATOR, AND BETS MUST BE PLACED ONLY THROUGH A CUSTOMER'S

BLACK HAWK, OR THE CITY OF CRIPPLE CREEK WHERE SPORTS

-26-

HB19-1327

 1
2

OWN COMPUTER OR MOBILE OR INTERACTIVE DEVICE.

(c)

A

CASINO'S SUPPORT SERVICES FOR SPORTS BETTING,

3

INCLUDING DATA AGGREGATION, RISK MANAGEMENT, COMPUTER

4

SERVICES, SETTING OF ODDS, AND BANKING MAY BE SITED OUTSIDE OF A

5

CASINO'S DESIGNATED GAMING AREA.

6

(d) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE

7

30, SPORTS BETTING SHALL NOT BE CONDUCTED ANYWHERE IN THE CITY

8

OF CENTRAL, THE CITY OF BLACK HAWK, OR THE CITY OF CRIPPLE CREEK

9

UNLESS SPORTS BETTING IS AUTHORIZED BY THE LOCAL VOTERS OF THE

10

RESPECTIVE CITY IN A MUNICIPAL OR COORDINATED ELECTION HELD IN

11

NOVEMBER 2019,

12

DESCRIBED IN SECTION 44-30-1514.

13

CONCURRENTLY WITH THE STATEWIDE ELECTION

(6) EACH LICENSEE SHALL KEEP A COMPLETE

SET OF BOOKS OF

14

ACCOUNT, CORRESPONDENCE, AND ALL OTHER RECORDS NECESSARY TO

15

FULLY SHOW THE SPORTS BETTING TRANSACTIONS OF THE LICENSEE, ALL

16

OF WHICH MUST BE OPEN AT ALL TIMES DURING BUSINESS HOURS FOR

17

INSPECTION AND EXAMINATION BY THE DIVISION OR ITS DULY AUTHORIZED

18

REPRESENTATIVES. THE DIVISION MAY REQUIRE ANY LICENSEE TO FURNISH

19

THE INFORMATION THAT THE DIVISION CONSIDERS NECESSARY FOR THE

20

PROPER ADMINISTRATION OF THIS PART 15 AND MAY REQUIRE AN AUDIT TO

21

BE MADE OF THE BOOKS OF ACCOUNT AND RECORDS WHEN THE DIVISION

22

CONSIDERS IT NECESSARY BY AN AUDITOR, SELECTED BY THE DIRECTOR,

23

WHO SHALL LIKEWISE HAVE ACCESS TO ALL THE BOOKS AND RECORDS OF

24

THE LICENSEE, AND THE LICENSEE MAY BE REQUIRED TO PAY THE EXPENSE

25

OF THE AUDIT.

26

(7) A SPORTS GOVERNING BODY MAY PETITION THE COMMISSION

27

TO RESTRICT, LIMIT, OR EXCLUDE A TYPE OF WAGER THE OUTCOME OF

-27-

HB19-1327

 1

WHICH IS SOLELY DETERMINED BY THE ACTIONS OF A SINGLE PLAYER.

2

UPON RECEIVING SUCH A PETITION, THE COMMISSION SHALL REVIEW THE

3

REQUEST IN GOOD FAITH, SEEK INPUT FROM THE SPORTS BETTING

4

OPERATORS ON THE PETITION, AND, IF THE COMMISSION DEEMS IT

5

APPROPRIATE, ADOPT RULES TO RESTRICT, LIMIT, OR EXCLUDE THAT TYPE

6

OF WAGER.

7

(8) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

8

CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

9

THE

NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE BALLOT

10

QUESTION SUBMITTED PURSUANT TO SECTION

11

2019 IN HOUSE BILL 19-____.

12

44-30-1506.

44-30-1514, ENACTED IN

Operations - eligibility to place bets -

13

record-keeping - information sharing. (1) A PERSON MUST BE AT LEAST

14

TWENTY-ONE YEARS OF AGE TO PLACE A BET.

15

(2) (a) A SPORTS BETTING OPERATOR SHALL ADOPT PROCEDURES

16

TO PREVENT PERSONS WHO ARE PROHIBITED FROM WAGERING ON SPORTS

17

EVENTS FROM DOING SO.

18

(b) A SPORTS BETTING OPERATOR SHALL NOT ACCEPT A BET FROM

19

ANY PERSON WHOSE IDENTITY IS KNOWN TO THE SPORTS BETTING

20

OPERATOR AND:

21

(I) WHOSE NAME APPEARS ON THE EXCLUSION LIST MAINTAINED

22

BY THE MASTER LICENSEE WITH WHOM THE SPORTS BETTING OPERATOR

23

HAS A CONTRACTUAL RELATIONSHIP; EXCEPT THAT A PERSON MAY NOT

24

INVALIDATE OR RETRACT A BET ALREADY PLACED AT THE TIME THE

25

PERSON'S NAME IS PLACED ON THE EXCLUSION LIST;

26

(II) WHO IS THE SPORTS BETTING OPERATOR, A DIRECTOR, OFFICER,

27

OWNER, OR EMPLOYEE OF THE SPORTS BETTING OPERATOR, OR ANY

-28-

HB19-1327

 1

RELATIVE OF THE SPORTS BETTING OPERATOR LIVING IN THE SAME

2

HOUSEHOLD AS THE SPORTS BETTING OPERATOR;

3
4
5
6
7
8

(III)

WHO

HAS

ACCESS

TO

NONPUBLIC,

CONFIDENTIAL

INFORMATION HELD BY THE SPORTS BETTING OPERATOR; OR

(IV) WHO IS AN AGENT OR PROXY FOR ANY OTHER PERSON FOR
THE PURPOSE OF PLACING THE BET.

(3) A SPORTS BETTING OPERATOR SHALL ESTABLISH OR DISPLAY
THE ODDS AT WHICH WAGERS MAY BE PLACED ON SPORTS EVENTS.

9

(4) A SPORTS BETTING OPERATOR SHALL ADOPT PROCEDURES TO

10

OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL

11

WHO PLACES ANY SINGLE BET IN AN AMOUNT OF TEN THOUSAND DOLLARS

12

OR MORE ON A SPORTS EVENT WHILE PHYSICALLY PRESENT IN A CASINO,

13

AND ALL DISCLOSURE AND REPORTING REQUIREMENTS OTHERWISE

14

APPLICABLE TO WAGERS UNDER THIS ARTICLE 30 APPLY TO THE CONDUCT

15

OF SPORTS BETTING UNDER THIS PART 15.

16
17

(5) (a) A SPORTS BETTING OPERATOR SHALL PROMPTLY REPORT TO
THE DIVISION:

18

(I) ANY CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED

19

AGAINST THE SPORTS BETTING OPERATOR OR ITS EMPLOYEES IN

20

CONNECTION WITH THE OPERATIONS OF THE SPORTS BETTING OPERATION

21

OR INTERNET SPORTS BETTING OPERATION;

22

(II) ANY ABNORMAL BETTING ACTIVITY OR DISCERNIBLE PATTERNS

23

THAT MAY INDICATE A CONCERN ABOUT THE INTEGRITY OF A SPORTS

24

EVENT OR EVENTS;

25

(III) ANY OTHER CONDUCT WITH THE POTENTIAL TO CORRUPT A

26

BETTING OUTCOME OF A SPORTS EVENT FOR PURPOSES OF FINANCIAL GAIN,

27

INCLUDING MATCH FIXING OR THE USE OF MATERIAL, NONPUBLIC

-29-

HB19-1327

 1

INFORMATION TO PLACE BETS OR FACILITATE ANOTHER PERSON'S SPORTS

2

BETTING ACTIVITY; AND

3

(IV) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING

4

THE USE OF FUNDS DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO

5

CONCEAL OR LAUNDER FUNDS DERIVED FROM ILLEGAL ACTIVITY, USE OF

6

AGENTS TO PLACE BETS, OR USE OF FALSE IDENTIFICATION.

7

(b) IN ADDITION TO REPORTING TO THE DIVISION AS REQUIRED BY

8

SUBSECTION (5)(a) OF THIS SECTION, A SPORTS BETTING OPERATOR SHALL

9

MAINTAIN RECORDS OF ALL BETS PLACED, INCLUDING PERSONALLY

10

IDENTIFIABLE INFORMATION OF THE BETTOR WHEN AVAILABLE, AMOUNT

11

AND TYPE OF BET, TIME THE BET WAS PLACED, LOCATION OF THE BET,

12

INCLUDING INTERNET PROTOCOL ADDRESS IF APPLICABLE, THE OUTCOME

13

OF THE BET, AND RECORDS OF ABNORMAL BETTING ACTIVITY. A SPORTS

14

BETTING OPERATOR SHALL MAINTAIN THESE RECORDS FOR AT LEAST

15

THREE YEARS AFTER THE SPORTS EVENT OCCURS AND SHALL MAKE THE

16

RECORDS AVAILABLE FOR INSPECTION UPON REQUEST OF THE DIVISION OR

17

AS REQUIRED BY COURT ORDER.

18

(c) THE DIVISION SHALL, GIVEN GOOD AND SUFFICIENT REASON,

19

COOPERATE WITH A SPORTS GOVERNING BODY AND SPORTS BETTING

20

OPERATORS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING

21

OF INFORMATION FOR THE SOLE PURPOSE OF ENSURING THE INTEGRITY OF

22

THEIR SPORT.

23

(d) THE DIVISION AND SPORTS BETTING OPERATORS SHALL, GIVEN

24

GOOD AND SUFFICIENT REASON, COOPERATE WITH INVESTIGATIONS

25

CONDUCTED BY SPORTS GOVERNING BODIES AND SHALL COOPERATE WITH

26

LAW ENFORCEMENT AGENCIES, INCLUDING PROVIDING OR FACILITATING

27

THE PROVISION OF ACCOUNT-LEVEL BETTING INFORMATION AND ANY

-30-

HB19-1327

 1

AVAILABLE AUDIO OR VIDEO FILES RELATING TO PERSONS PLACING BETS.

2

(e) THE DIVISION MAY SHARE ANY INFORMATION OBTAINED UNDER

3

THIS SECTION WITH ANY LAW ENFORCEMENT ENTITY, TEAM, SPORTS

4

GOVERNING

5

INFORMATION

6

INVESTIGATION CONDUCTED BY THAT ENTITY, TEAM, SPORTS GOVERNING

7

BODY, OR REGULATORY AGENCY.

8

AGGREGATE INFORMATION TO PROTECT THE PRIVACY OF PERSONS WHO

9

ARE NOT SUBJECTS OR TARGETS OF THE INVESTIGATION.

10

(6)

BODY,
FROM

ALL

OR

REGULATORY

THE

DIVISION

AGENCY
IN

THE

THAT

CONNECTION

REQUESTS
WITH

AN

DIVISION MAY REDACT OR

BETS AUTHORIZED UNDER THIS PART

15

MUST BE

11

INITIATED, RECEIVED, AND OTHERWISE MADE WITHIN COLORADO UNLESS

12

OTHERWISE DETERMINED BY THE DIVISION IN ACCORDANCE WITH

13

APPLICABLE FEDERAL AND STATE LAWS. CONSISTENT WITH THE INTENT OF

14

THE

15

"UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT

16

U.S.C.

17

DATA RELATING TO A LAWFUL INTRASTATE WAGER AUTHORIZED UNDER

18

THIS PROVISION DOES NOT DETERMINE THE LOCATION OR LOCATIONS IN

19

WHICH THE WAGER IS INITIATED, RECEIVED, OR OTHERWISE MADE.

UNITED STATES

SEC.

CONGRESS AS ARTICULATED IN THE FEDERAL

5361-5367,

OF

2006", 31

THE INTERMEDIATE ROUTING OF ELECTRONIC

20

(7) EACH SPORTS BETTING OPERATOR MAY SET SUCH BET LIMITS

21

AS IT SEES FIT, IN ITS SOLE DISCRETION, AND MAY MAKE THOSE LIMITS

22

SPECIFIC TO A FORM OR CLASS OF SPORTS BETTING, A SPECIFIC SPORTS

23

EVENT, OR A PERSON PLACING A BET, BASED ON INDIVIDUAL OR

24

AGGREGATE DATA CONCERNING BETS TO BE PLACED OR THAT HAVE BEEN

25

PLACED HISTORICALLY BY THAT INDIVIDUAL OR ON THAT FORM OR CLASS

26

OF SPORTS BETTING OR ON THAT SPORTS EVENT.

27

(8) AN INTERNET SPORTS BETTING OPERATOR SHALL ACCEPT BETS

-31-

HB19-1327

 1

ONLY FROM PERSONS PHYSICALLY LOCATED WITHIN THE STATE OF

2

COLORADO. AN INTERNET SPORTS BETTING OPERATOR MAY ESTABLISH

3

AND FUND SPORTS WAGERING ACCOUNTS ELECTRONICALLY THROUGH

4

COMMISSION-APPROVED MOBILE APPLICATIONS AND DIGITAL PLATFORMS.

5

44-30-1507. Records - confidentiality - exceptions. (1) EXCEPT

6

AS SPECIFIED IN SUBSECTIONS (2) AND (3) OF THIS SECTION, INFORMATION

7

AND RECORDS OF THE COMMISSION ENUMERATED BY THIS SECTION ARE

8

CONFIDENTIAL AND MAY NOT BE DISCLOSED EXCEPT PURSUANT TO A

9

COURT ORDER.

NO

PERSON MAY BY SUBPOENA, DISCOVERY, OR

10

STATUTORY AUTHORITY OBTAIN SUCH INFORMATION OR RECORDS.

11

INFORMATION AND RECORDS CONSIDERED CONFIDENTIAL INCLUDE:

12

(a) TAX RETURNS OF INDIVIDUAL LICENSEES;

13

(b) CREDIT REPORTS AND SECURITY REPORTS AND PROCEDURES OF

14

APPLICANTS AND OTHER PERSONS SEEKING TO DO BUSINESS OR DOING

15

BUSINESS WITH THE COMMISSION;

16

(c)

AUDIT

WORK PAPERS, WORKSHEETS, AND AUDITING

17

PROCEDURES USED BY THE COMMISSION, ITS AGENTS, OR EMPLOYEES; AND

18

(d) INVESTIGATIVE REPORTS CONCERNING VIOLATIONS OF LAW OR

19

CONCERNING THE BACKGROUNDS OF LICENSEES, APPLICANTS, OR OTHER

20

PERSONS PREPARED BY DIVISION INVESTIGATORS OR INVESTIGATORS FROM

21

OTHER AGENCIES WORKING WITH THE COMMISSION AND ANY WORK PAPERS

22

RELATED TO THE REPORTS; EXCEPT THAT THE COMMISSION MAY, IN ITS

23

SOLE DISCRETION, DISCLOSE SO MUCH OF THE REPORTS OR WORK PAPERS

24

AS IT DEEMS NECESSARY AND PRUDENT.

25

(2)

SUBSECTION (1)

OF THIS SECTION DOES NOT APPLY TO

26

REQUESTS FOR INFORMATION OR RECORDS DESCRIBED IN SUBSECTION (1)

27

OF THIS SECTION FROM THE GOVERNOR, ATTORNEY GENERAL, STATE

-32-

HB19-1327

 1

AUDITOR, ANY OF THE RESPECTIVE DISTRICT ATTORNEYS OF THIS STATE,

2

OR ANY FEDERAL OR STATE LAW ENFORCEMENT AGENCY, OR FOR THE USE

3

OF THE INFORMATION OR RECORDS BY THE EXECUTIVE DIRECTOR,

4

DIRECTOR, OR COMMISSION FOR OFFICIAL PURPOSES, OR BY EMPLOYEES OF

5

THE DIVISION OR THE DEPARTMENT IN THE PERFORMANCE OF THEIR

6

AUTHORIZED AND OFFICIAL DUTIES.

7

(3) THIS SECTION DOES NOT MAKE CONFIDENTIAL THE AGGREGATE

8

TAX COLLECTIONS DURING ANY REPORTING PERIOD, THE NAMES AND

9

BUSINESSES OF LICENSEES, OR FIGURES SHOWING THE AGGREGATE

10
11

AMOUNT OF MONEY BET DURING ANY REPORTING PERIOD.

(4) (a) A

PERSON WHO DISCLOSES CONFIDENTIAL RECORDS OR

12

INFORMATION IN VIOLATION OF THIS SECTION COMMITS A CLASS

13

MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION

14

18-1.3-501. A CRIMINAL PROSECUTION PURSUANT TO THIS SECTION MUST

15

BE BROUGHT WITHIN FIVE YEARS AFTER THE DATE THE VIOLATION

16

OCCURRED.

17

(b) IF

1

A PERSON VIOLATING THIS SECTION IS AN OFFICER OR

18

EMPLOYEE OF THE STATE, IN ADDITION TO ANY OTHER PENALTIES OR

19

SANCTIONS, THE PERSON IS SUBJECT TO DISMISSAL IF THE PROCEDURES IN

20

SECTION 24-50-125 ARE FOLLOWED.

21

(c) A PERSON

IS LIABLE FOR TREBLE DAMAGES TO AN INJURED

22

PARTY IN A CIVIL ACTION THE SUBJECT OF WHICH INCLUDES THE RELEASE

23

OF CONFIDENTIAL RECORDS OR INFORMATION, IF THE PERSON VIOLATING

24

THIS SECTION IS A CURRENT EMPLOYEE OR OFFICER OF THE STATE WHO

25

OBTAINED THE CONFIDENTIAL RECORDS OR INFORMATION SPECIFIED IN

26

SUBSECTION (1) OF THIS SECTION DURING HIS OR HER EMPLOYMENT.

27

(d) A

FORMER EMPLOYEE OR OFFICER IS LIABLE FOR TREBLE

-33-

HB19-1327

 1

DAMAGES TO AN INJURED PARTY IN A CIVIL ACTION THE SUBJECT OF WHICH

2

INCLUDES THE RELEASE OF RECORDS OR INFORMATION AFTER LEAVING

3

STATE EMPLOYMENT IF THE PERSON VIOLATING THIS SECTION IS A FORMER

4

EMPLOYEE OR OFFICER OF THE STATE WHO OBTAINED THE CONFIDENTIAL

5

RECORDS OR INFORMATION DURING HIS OR HER EMPLOYMENT AND THE

6

PERSON EXECUTED A WRITTEN STATEMENT WITH THE STATE AGREEING TO

7

BE HELD TO THE CONFIDENTIALITY STANDARDS EXPRESSED IN THIS

8

SUBSECTION (4).

9

44-30-1508. Sports betting tax - rules. (1) THERE IS HEREBY

10

IMPOSED A TAX ON SPORTS BETTING ACTIVITY, AT THE RATE OF TEN

11

PERCENT OF NET SPORTS BETTING PROCEEDS.

12

ESTABLISH BY RULE THE FORM AND MANNER IN WHICH THE TAX IS

13

COLLECTED.

14

(2)

ALL

THE

COMMISSION SHALL

PROCEEDS OF THE SPORTS BETTING TAX SHALL BE

15

FORWARDED TO THE STATE TREASURER, WHO SHALL CREDIT THEM TO THE

16

SPORTS BETTING FUND CREATED IN SECTION 44-30-1509.

17

44-30-1509. Sports betting fund - creation - rules - definitions.

18

(1) (a) THERE IS HEREBY CREATED, IN THE STATE TREASURY, THE SPORTS

19

BETTING FUND, REFERRED TO IN THIS SECTION AS THE "FUND". THE INITIAL

20

APPROPRIATION TO THE DIVISION FOR SPORTS BETTING REGULATION AND

21

ALL SUBSEQUENT REVENUES OF THE DIVISION DERIVED FROM SPORTS

22

BETTING ACTIVITY, INCLUDING LICENSE FEES, FINES AND PENALTIES, AND

23

COLLECTION OF THE SPORTS BETTING TAX, SHALL BE DEPOSITED INTO THE

24

FUND.

25

REGULATION, INCLUDING THE EXPENSES OF INVESTIGATION AND

26

PROSECUTION RELATING TO SPORTS BETTING, SHALL BE PAID FROM THE

27

FUND.

ALL

EXPENSES OF THE DIVISION RELATED TO SPORTS BETTING

-34-

HB19-1327

 1

(b)

ALL

MONEY PAID INTO THE FUND IS CONTINUOUSLY

2

APPROPRIATED FOR THE PURPOSES OF IMPLEMENTING THIS PART

3

PAYMENT SHALL BE MADE UPON PROPER PRESENTATION OF A VOUCHER

4

PREPARED BY THE COMMISSION IN ACCORDANCE WITH OTHER STATUTES

5

GOVERNING PAYMENTS OF LIABILITIES INCURRED ON BEHALF OF THE STATE

6

AND SHALL NOT BE CONDITIONED ON ANY APPROPRIATION BY THE

7

GENERAL ASSEMBLY. RECEIPT OF THE PAYMENT CONSTITUTES SPENDING

8

AUTHORITY BY THE DIVISION.

9
10

15.

(2) FROM THE MONEY IN THE SPORTS BETTING FUND, THE STATE
TREASURER SHALL:

11

(a) FIRST, TRANSFER AN AMOUNT TO THE GENERAL FUND TO REPAY

12

ANY APPROPRIATION MADE FROM THE GENERAL FUND FOR THE

13

COMMISSION'S AND DIVISION'S STARTUP COSTS, INCLUDING INITIAL

14

LICENSING AND RULE-MAKING, RELATED TO SPORTS BETTING.

15

(b)

SECOND,

PAY ALL ONGOING EXPENSES RELATED TO

16

ADMINISTERING THIS PART

15

INCURRED BY THE COMMISSION, THE

17

DEPARTMENT, THE DIVISION, AND ANY OTHER STATE AGENCY FROM WHOM

18

ASSISTANCE RELATED TO THE ADMINISTRATION OF THIS PART

19

REQUESTED BY THE COMMISSION OR THE DIRECTOR, AS DETERMINED IN

20

ACCORDANCE WITH RULES OF THE COMMISSION.

21

DISTRIBUTIONS FROM THE FUND AS DESCRIBED IN THIS SUBSECTION

22

THE STATE TREASURER MAY WITHHOLD AN AMOUNT REASONABLY

23

ANTICIPATED TO BE SUFFICIENT TO PAY THE EXPENSES UNTIL THE NEXT

24

ANNUAL DISTRIBUTION.

WHEN

15

IS

MAKING

(2),

25

(c) THIRD, TRANSFER AN AMOUNT EQUAL TO TWO PERCENT OF THE

26

FULL FISCAL YEAR SPORTS BETTING TAX REVENUES TO THE STATE

27

HISTORICAL FUND CREATED BY SECTION 9 (5)(b)(II) OF ARTICLE XVIII OF

-35-

HB19-1327

 1

THE STATE CONSTITUTION AND THE COLLEGES DESCRIBED IN SECTION

2

44-30-702 (4)(a), IN PROPORTION TO THE PRIOR FISCAL YEAR'S LIMITED

3

AND EXTENDED GAMING REVENUE TO EACH AS DETERMINED UNDER

4

SECTIONS

5

CALCULATED AS FOLLOWS:

6

44-30-701

(I) FOR

AND

44-30-702,

PLUS AN ANNUAL ADJUSTMENT

REVENUES COLLECTED IN FISCAL YEAR

2020-21,

THE

7

PAYMENT MUST EQUAL TWO PERCENT OF THE FIRST YEAR'S REVENUES

8

ATTRIBUTABLE TO SPORTS BETTING.

9
10

(II) FOR EACH FISCAL YEAR AFTER THE 2020-21 FISCAL YEAR, THE
STATE TREASURER SHALL ADJUST THE ANNUAL PAYMENT AS FOLLOWS:

11

(A) FOR ANY FISCAL YEAR IN WHICH THE ANNUAL GROWTH OF

12

REVENUES ATTRIBUTABLE TO SPORTS BETTING EQUALS OR EXCEEDS TWO

13

PERCENT, ADD AN AMOUNT TO THE PAYMENT MADE FOR THE PRIOR FISCAL

14

YEAR EQUAL TO TWO PERCENT OF SAID REVENUES;

15

(B) FOR

ANY FISCAL YEAR IN WHICH THE ANNUAL GROWTH IN

16

REVENUES ATTRIBUTABLE TO SPORTS BETTING EQUALS OR EXCEEDS ZERO

17

BUT IS LESS THAN TWO PERCENT, ADD AN AMOUNT TO THE PAYMENT MADE

18

FOR THE PRIOR FISCAL YEAR EQUAL TO THE ACTUAL PERCENTAGE GROWTH

19

OF SAID REVENUES;

20

(C) FOR ANY FISCAL YEAR IN WHICH REVENUES ATTRIBUTABLE TO

21

SPORTS BETTING EXPERIENCE A DECLINE, REDUCE THE PAYMENT BY AN

22

AMOUNT EQUAL TO THE ACTUAL PERCENTAGE DECLINE OF SAID REVENUES.

23

(d)

FOURTH,

TRANSFER ONE HUNDRED THIRTY THOUSAND

24

DOLLARS ANNUALLY TO THE OFFICE OF BEHAVIORAL HEALTH IN THE

25

DEPARTMENT OF HUMAN SERVICES, TO BE USED AS FOLLOWS:

26

(I) THIRTY THOUSAND DOLLARS FOR THE OPERATION OF A CRISIS

27

HOTLINE FOR GAMBLERS BY ROCKY MOUNTAIN CRISIS PARTNERS OR ITS

-36-

HB19-1327

 1
2

SUCCESSOR ORGANIZATION; AND

(II)

ONE

HUNDRED THOUSAND DOLLARS FOR PREVENTION,

3

EDUCATION, TREATMENT, AND WORKFORCE DEVELOPMENT BY, AND

4

INCLUDING THE PAYMENT OF SALARIES OF, COUNSELORS CERTIFIED IN THE

5

TREATMENT OF GAMBLING DISORDERS.

6

(e)

7

UNENCUMBERED

8

IMPLEMENTATION CASH FUND CREATED IN SECTION 37-60-123.3.

9
10

(3)

FIFTH,

TRANSFER ALL REMAINING UNEXPENDED AND

MONEY

NOTHING

IN

THE

FUND

TO

THE

WATER

PLAN

IN THIS SECTION PERMITS COMPOUNDING OR

ACCUMULATION OF THE ANNUAL ADJUSTMENT.

11

(4) UPON REQUEST, THE STATE TREASURER SHALL REPORT TO THE

12

DIRECTOR OR THE COMMISSION THE AMOUNT OF MONEY AVAILABLE IN THE

13

FUND. THE DIRECTOR SHALL CERTIFY ALL ACCOUNTS AND EXPENDITURES

14

FROM THE FUND.

15

DRAWN BY THE CONTROLLER.

16

DIRECTED TO DRAW WARRANTS PAYABLE OUT OF THE FUND UPON

17

VOUCHERS PROPERLY CERTIFIED.

THE

STATE TREASURER SHALL PAY UPON WARRANTS

THE

CONTROLLER IS AUTHORIZED AS

18

(5) THE STATE TREASURER SHALL INVEST THE MONEY IN THE FUND

19

SO LONG AS THE MONEY IS TIMELY AVAILABLE TO PAY THE EXPENSES OF

20

THE DIVISION. INVESTMENTS MUST BE THOSE OTHERWISE PERMITTED BY

21

STATE LAW, AND INTEREST OR ANY OTHER RETURN ON THE INVESTMENTS

22

SHALL BE PAID INTO THE FUND.

23

(6) THE DIVISION SHALL BE OPERATED SO THAT, AFTER THE INITIAL

24

STATE APPROPRIATION, ITS ADMINISTRATION OF THIS PART

25

FINANCIALLY SELF-SUSTAINING.

26
27

15

IS

(7) NO CLAIM FOR THE PAYMENT OF ANY EXPENSE OF THE DIVISION
RELATING TO ADMINISTERING THIS PART

-37-

15 CAN BE MADE UNLESS IT IS

HB19-1327

 1

AGAINST THE FUND. NO OTHER MONEY OF THE STATE SHALL BE USED OR

2

OBLIGATED TO PAY THE EXPENSES OF THE DIVISION OR COMMISSION

3

RELATED TO SPORTS BETTING.

4

44-30-1510.

Audits. THE

SPORTS BETTING FUND SHALL BE

5

AUDITED AT LEAST ONCE BEFORE

6

EVERY FIVE YEARS THEREAFTER, BY OR UNDER THE DIRECTION OF THE

7

STATE AUDITOR, WHO, NOTWITHSTANDING SECTION 24-1-136

8

SHALL SUBMIT A REPORT OF THE AUDIT TO THE LEGISLATIVE AUDIT

9

COMMITTEE.

10
11
12
13

THE

MAY 1, 2022,

AND AT LEAST ONCE

(11)(a)(I),

EXPENSES OF THE AUDIT SHALL BE PAID FROM THE

SPORTS BETTING FUND.

44-30-1511.

Unlawful acts. (1)

IN

ADDITION TO THE

PROHIBITIONS IN SECTION 44-30-801, IT IS UNLAWFUL FOR ANY PERSON:

(a)

TO

CHARGE, IN CONNECTION WITH THE PLACEMENT OR

14

ACCEPTANCE OF A BET, A COMMISSION OR FEE GREATER THAN OR LESS

15

THAN THAT FIXED BY THE COMMISSION;

16
17

(b) TO ACCEPT A BET BY ANY PERSON UNDER TWENTY-ONE YEARS
OF AGE; OR

18

(c) TO ACCEPT A BET AT ANY PLACE OR IN ANY MANNER OTHER

19

THAN A PLACE OR MANNER AUTHORIZED AND SPECIFIED IN A SPORTS

20

BETTING LICENSE.

21

44-30-1512. Penalties. (1) IN ADDITION TO ANY OTHER PENALTIES

22

THAT MAY APPLY, A PERSON VIOLATING SECTION 44-30-1511 COMMITS A

23

CLASS 2 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION

24

18-1.3-501.

25

(2) A PERSON VIOLATING THE ACCEPTANCE OF BETS RESTRICTIONS

26

OF SECTION

44-30-1511 (1)(b) MAY ALSO BE PROSECUTED PURSUANT TO

27

SECTION 18-6-701 FOR CONTRIBUTING TO THE DELINQUENCY OF A MINOR.

-38-

HB19-1327

 1

(3) A PERSON PURPORTING TO ISSUE, SUSPEND, REVOKE, OR RENEW

2

LICENSES PURSUANT TO THIS PART 15 OR TO PROCURE OR INFLUENCE THE

3

ISSUANCE, SUSPENSION, REVOCATION, OR RENEWAL OF A LICENSE FOR ANY

4

PERSONAL PECUNIARY GAIN OR ANY THING OF VALUE, AS DEFINED IN

5

SECTION

6

COMMITS A CLASS

7

SECTION 18-1.3-401.

18-1-901 (3)(r), OR A PERSON VIOLATING SECTION 44-30-1502

(4)

8

A

3 FELONY AND SHALL BE PUNISHED AS PROVIDED IN

PERSON VIOLATING ANY PROVISION OF THIS PART

15

9

RELATING TO DISCLOSURE BY PROVIDING FALSE OR MISLEADING

10

INFORMATION COMMITS A CLASS 6 FELONY AND SHALL BE PUNISHED AS

11

PROVIDED IN SECTION 18-1.3-401.

44-30-1513. Other laws inapplicable. ANY

12

OTHER STATE OR

13

LOCAL LAW IN CONFLICT WITH THIS PART

15 IS INAPPLICABLE, BUT THIS

14

SECTION DOES NOT SUPERSEDE OR AFFECT PART 6 OF ARTICLE 21 OF TITLE

15

24.

16

44-30-1514. Approval by electors - repeal. (1) THE SECRETARY

17

OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF THE STATE FOR

18

THEIR APPROVAL OR REJECTION AT THE STATEWIDE ELECTION HELD IN

19

NOVEMBER 2019 THE FOLLOWING BALLOT ISSUE: "SHALL STATE TAXES BE

20

INCREASED BY __________ DOLLARS ANNUALLY TO FUND STATE WATER

21

PROJECTS AND COMMITMENTS AND TO PAY FOR THE REGULATION OF

22

SPORTS BETTING THROUGH LICENSED CASINOS BY AUTHORIZING A TAX ON

23

SPORTS BETTING OF TEN PERCENT OF NET SPORTS BETTING PROCEEDS, AND

24

TO IMPOSE THE TAX ON PERSONS LICENSED TO CONDUCT SPORTS BETTING

25

OPERATIONS?".

26

(2) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2020.

27

44-30-1515. Repeal of part. (1) THIS

-39-

PART

15

IS REPEALED,

HB19-1327

 1

EFFECTIVE

2

STATEWIDE ELECTION DO NOT APPROVE THE QUESTION DESCRIBED IN

3

SECTION

4

DECLARATION OF THE VOTE THEREON.

5

MAY 1, 2020,

44-30-1514

IF THE VOTERS AT THE

AND

NOVEMBER 2019

THE GOVERNOR ISSUES AN OFFICIAL

(2) THIS SECTION IS REPEALED, EFFECTIVE MAY 1, 2020, IF THE

6

VOTERS AT THE

7

QUESTION DESCRIBED IN SECTION 44-30-1514 AND THE GOVERNOR ISSUES

8

AN OFFICIAL DECLARATION OF THE VOTE THEREON.

9
10
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NOVEMBER 2019

STATEWIDE ELECTION APPROVE THE

SECTION 12. In Colorado Revised Statutes, 18-10-102, amend
(2)(d) and (2)(f); and add (2)(g) as follows:
18-10-102. Definitions. As used in this article 10, unless the
context otherwise requires:

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(2) "Gambling" means risking any money, credit, deposit, or other

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thing of value for gain contingent in whole or in part upon lot, chance, the

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operation of a gambling device, or the happening or outcome of an event,

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including a sporting event, over which the person taking a risk has no

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control, but does not include:

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(d) Any game, wager, or transaction which THAT is incidental to

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a bona fide social relationship, is participated in by natural persons only,

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and in which no person is participating, directly or indirectly, in

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professional gambling; or

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(f) Any use of or transaction involving a crane game, as defined
in section 44-30-103 (9); OR
(g) SPORTS BETTING CONDUCTED IN ACCORDANCE WITH PART 15

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OF ARTICLE

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GAMING CONTROL COMMISSION.

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OF TITLE

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AND APPLICABLE RULES OF THE LIMITED

SECTION 13. In Colorado Revised Statutes, add 37-60-123.3 as

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follows:

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37-60-123.3. Water plan implementation cash fund - created.

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(1) THERE IS HEREBY CREATED IN THE STATE TREASURY THE WATER PLAN

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IMPLEMENTATION CASH FUND, REFERRED TO IN THIS SECTION AS THE

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"FUND". THE FUND CONSISTS OF SPORTS BETTING REVENUES TRANSFERRED

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FROM THE SPORTS BETTING FUND IN ACCORDANCE WITH SECTION

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44-30-1509 AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY

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APPROPRIATE OR TRANSFER TO THE FUND. THE STATE TREASURER SHALL

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CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND

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INVESTMENT OF MONEY IN THE FUND TO THE FUND.

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(2) FROM THE FUND, THE BOARD MAY APPROVE OF:

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(a) GRANTS PURSUANT TO SECTION 37-60-106.3 (6);

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(b) EXPENDITURES

TO ENSURE COMPLIANCE WITH INTERSTATE

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WATER ALLOCATION COMPACTS, EQUITABLE APPORTIONMENT DECREES,

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INTERNATIONAL TREATIES, AND FEDERAL LAWS RELATING TO INTERSTATE

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STORAGE AND RELEASE, APPORTIONMENT, AND ALLOCATION OF WATER,

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INCLUDING TO SUPPORT PROJECTS AND PROCESSES THAT MAY INCLUDE

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COMPENSATION TO WATER USERS FOR TEMPORARY AND VOLUNTARY

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REDUCTIONS IN CONSUMPTIVE USE THAT ARE REGIONALLY EQUITABLE AND

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AVOID DISPROPORTIONATE, NEGATIVE ECONOMIC OR ENVIRONMENTAL

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IMPACTS TO ANY SINGLE SUBBASIN OR REGION; AND

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(c)

EXPENDITURES

THAT MAY BE NECESSARY FOR THE

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ADMINISTRATION OF GRANTS AND COMPACT EXPENDITURES LISTED IN

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SUBSECTIONS

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(2)(a) AND (2)(b) OF THIS SECTION.

SECTION 14.

Act subject to petition - effective date.

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(1) Except as specified in subsection (2) of this section, this act takes

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effect at 12:01 a.m. on the day following the expiration of the ninety-day

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period after final adjournment of the general assembly (August 2, 2019,

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if adjournment sine die is on May 3, 2019); except that, if a referendum

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petition is filed pursuant to section 1 (3) of article V of the state

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constitution against this act or an item, section, or part of this act within

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such period, then the act, item, section, or part will not take effect unless

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approved by the people at the general election to be held in November

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2020 and, in such case, will take effect on the date of the official

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declaration of the vote thereon by the governor.

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(2) (a) Sections 1 to 3, 6, 7, 12, and 13 of this act and sections

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44-30-1501, 44-30-1502, and 44-30-1506 to 44-30-1514, Colorado

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Revised Statutes, enacted by section 11 of this act, take effect only if, at

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the November 2019 statewide election, a majority of voters approve the

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ballot question submitted pursuant to section 44-30-1514, Colorado

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Revised Statutes, enacted in section 11 of this act.

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(b) If the voters at the November 2019 statewide election approve

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the ballot question described in subsection (2)(a) of this section, then

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sections 1 to 3, 6, 7, 12, and 13 of this act and sections 44-30-1501,

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44-30-1502, and 44-30-1506 to 44-30-1514, Colorado Revised Statutes,

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enacted by section 11 of this act, take effect May 1, 2020.

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(c) Section 13 of this act takes effect only if Senate Bill 19-212
becomes law.

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