Colo. Rev. Stat. § 44-30-1503, Licenses

(1) (a) The commission shall issue, deny, suspend, revoke, and renew sports betting licenses pursuant to subsection (3) of this section and rules adopted by the commission and may assess fines and penalties for violations of this part 15. The commission's licensing rules must include requirements relating to the financial responsibility of the licensee, the licensee's source of revenue for its sports betting operations, the character of the licensee, the trustworthy operation of the sports betting activity sought to be licensed, and other matters necessary to protect the public interest and trust in sports betting. Suspension is limited to circumstances in which the licensee's actions appear contrary to the public interest or tend to undermine public trust in the integrity of sports betting.

(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 consistent with the protection of the public interest and trust in sports betting; or

(IV) Except as required by section 44-30-1516, intentionally refused to pay cash winnings in the licensee's possession to a person entitled to receive the cash winnings under this part 15.

(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.

(3) Licensees may include individuals, firms, associations, or corporations, whether for profit or nonprofit, but the following are ineligible for a license under this part 15:

(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;

(c) A person who has engaged in bookmaking or any other form of illegal gambling, including any sports betting operation whose wagering activities did not result in prosecution but that the commission finds violated state or federal law;

(d) A person who is not of good character and reputation, notwithstanding section 24-5-101;

(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 subsections (3)(b) to (3)(e) of this section has a proprietary, equitable, or credit interest of ten percent or more;

(g) An organization in which a person described in subsections (3)(b) to (3)(e) of this section is an officer, director, or managing agent, whether compensated or not; or

(h) An organization in which a person described in subsections (3)(b) to (3)(e) of this section is to participate in the management or promotion of sports betting.

(4) In addition to the persons specified in subsection (3) of this section as ineligible for a license, the commission may determine the following to be ineligible for a license under this part 15:

(a) A person who has been convicted of a felony or a crime involving fraud, notwithstanding section 24-5-101;

(b) A firm or corporation in which a person described in subsection (4)(a) of this section has a proprietary, equitable, or credit interest of ten percent or more;

(c) An organization in which a person described in subsection (4)(a) of this section is an officer, director, or managing agent, whether compensated or not; or

(d) An organization in which a person described in subsection (4)(a) of this section is to participate in the management or promotion of sports betting.

(5) Repealed.

Source: L. 2019: Entire part added, (HB 19-1327), ch. 347, p. 3218, � 12, effective August 2. L. 2022: (2)(a)(IV) amended, (HB 22-1412), ch. 405, p. 2876, � 10, effective July 1, 2023. L. 2024: (5) repealed, (HB 24-1450), ch. 490, p. 3431, � 97, effective August 7.

44-30-1504. Disclosure of information by corporate applicants - license required - investigation - criminal history record check - rules - definition. (1) Corporate applicants for a sports betting license and licensees shall disclose to the commission, in a form and manner determined by the commission, the identity of:

(a) Each board-appointed officer of the applicant or licensee;

(b) Each director of the applicant or licensee;

(c) Each person who directly holds any voting or controlling interest of ten percent or more, in the case of a sports betting operator license or internet sports betting operator license, or of any percentage, in the case of a master license, of the securities issued by the applicant or licensee;

(d) Each person who directly holds any nonvoting or passive ownership interest of twenty-five percent or more of the securities issued by the applicant or licensee;

(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 licensee, the applicant or licensee shall establish and maintain the qualifications of:

(a) Each board-appointed officer of the holding, intermediary, or subsidiary company;

(b) Each director of the holding, intermediary, or subsidiary company;

(d) Each person who directly holds any nonvoting or passive ownership interest of twenty-five percent or more in the holding, intermediary, or subsidiary company; and

(e) Each lender from which the holding, intermediary, or subsidiary company currently has an outstanding loan.

(3) The commission or the division may waive any or all of the qualification requirements for any person listed in subsection (1) or (2) of this section.

(4) All persons employed directly in gambling-related activities conducted by a licensee or applicant for a sports betting license, whether in a casino, in a sports betting operation or internet sports betting operation, or in any other capacity, must be licensed under this part 15. Other employees of a licensee may be required to hold support licenses, if appropriate, in accordance with rules of the commission promulgated in consultation with the division.

(5) A master licensee shall designate one or more key employees to be responsible for the operation of the sports betting operation. At least one such key employee shall be on the premises whenever sports betting is conducted.

(6) The applicant for a sports betting license must submit to and pay the costs of any investigation into the background of an applicant. The division may conduct the investigation pursuant to section 44-30-204.

(7) (a) Each applicant for a sports betting license, with or as a supplement to the application, shall submit a set of fingerprints to the division; except that an applicant whose primary residence is located outside of the United States is not required to satisfy this requirement unless the commission determines that the applicant is so required. The division shall forward the fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. Only the actual costs of the record check shall be borne by the applicant. Nothing in this subsection (7) precludes the division from making further inquiries into the background of the applicant.

(b) For purposes of this subsection (7), applicant means an individual or each officer or director of a firm, association, or corporation that is applying for a sports betting license pursuant to this section.

(8) Repealed.

Source: L. 2019: Entire part added, (HB 19-1327), ch. 347, p. 3220, � 12, effective August 2. L. 2021: (7)(a) amended, (HB 21-1296), ch. 386, p. 2586, � 4, effective June 30. L. 2022: (7)(a) amended, (HB 22-1412), ch. 405, p. 2876, � 8, effective August 10. L. 2024: (8) repealed, (HB 24-1450), ch. 490, p. 3431, � 98, effective August 7.

44-30-1505. License classifications - number of licenses - designated sports betting operators - qualifications - rules. (1) The commission shall issue the following three classifications of sports betting licenses in addition to any license classifications the commission chooses to authorize in accordance with section 44-30-1504 (4):

(a) Master license;

(b) Sports betting operator; and

(2) (a) (I) The commission may issue a master license, upon the applicant's payment of any required fees and compliance with all other requirements of this part 15, to a person that holds a retail gaming license as described in section 44-30-501 (1)(c). A person holding more than one retail gaming license may be issued one master license for each retail gaming license it holds.

(II) The purchase of an existing ownership interest in a casino requiring the issuance of a new retail gaming license does not prohibit the transfer of an existing master license with the ownership interest, subject to approval by the commission.

(III) A master licensee shall conduct sports betting on its premises in accordance with this part 15 and shall not transfer its licensed sports betting operation to be conducted at any facility located outside the city of Central, the city of Black Hawk, or the city of Cripple Creek, regardless of whether that facility is licensed to manufacture or sell alcohol beverages under this title 44; licensed as a class B track or simulcast facility under article 32 of this title 44; licensed as a lottery sales agent under section 44-40-107; or licensed to conduct bingo or raffles under part 6 of article 21 of title 24. This subsection (2)(a)(III) does not prohibit sports betting through a licensed internet sports betting operator by a customer using his or her own computer or mobile or interactive device anywhere in the state.

(IV) A master license expires two years after the date of issuance but may be renewed upon the filing and approval of an application for renewal.

(b) (I) A sports betting operator license or internet sports betting operator license entitles the licensee to contract with a master licensee for the purpose of operating a sports betting operation or internet sports betting operation, as applicable. Each master licensee shall contract with no more than one sports betting operator and one internet sports betting operator at the same time. A master licensee may contract with the same entity to provide the services of a sports betting operator and an internet sports betting operator.

(II) An internet sports betting operator may provide only one individually branded website, which may have an accompanying mobile application that must bear the same unique brand as the website for an internet sports betting operation. An internet sports betting operation shall not be opened to the public, and, except for test purposes, sports betting shall not be conducted in the internet sports betting operation until the internet sports betting operator receives its license and the commission approves its contract with the master licensee in accordance with subsection (3) of this section.

(c) A person may hold both a sports betting operator license and an internet sports betting operator license. The commission shall determine by rule the distinctions and specific qualifications applicable to these licenses, including qualifications as to the time, place, and manner of accepting wagers and of verifying the identity of persons seeking to place wagers.

(3) A contract between two or more licensees listed in subsection (1) of this section must be submitted in advance to, and is subject to approval by, the division in accordance with rules of the commission.

(4) Each license issued pursuant to this section expires two years after issuance but may be renewed upon the filing and approval of an application for renewal. The fee for issuance or renewal of a license listed in subsection (1) of this section is as specified by the commission by rule in an amount sufficient to recover the commission's direct and indirect costs of processing the application and conducting background investigations, not to exceed one hundred twenty-five thousand dollars.

(5) (a) A sports betting operation other than an internet sports betting operation must be operated in a designated area within a casino, subject to all requirements concerning design, equipment, security measures, and related matters established by the commission by rule, and may offer sports betting on any sports event authorized under rules of the commission.

(b) All sports betting licenses must specify the portion of the licensee's premises located within the city of Central, the city of Black Hawk, or the city of Cripple Creek where sports betting will take place. The commission shall not require sports betting to be conducted within a casino's designated gaming area as authorized by the commission by rule, but any sports betting conducted outside of a casino's designated gaming area must be conducted only by a licensed internet sports betting operator, and bets must be placed only through a customer's own computer or mobile or interactive device.

(c) A casino's support services for sports betting, including data aggregation, risk management, computer services, setting of odds, and banking may be sited outside of a casino's designated gaming area.

(d) Repealed.

(6) Each licensee shall keep a complete set of books of account, correspondence, and all other records necessary to fully show the sports betting transactions of the licensee, all of which must be open at all times during business hours for inspection and examination by the division or its duly authorized representatives. The division may require any licensee to furnish the information that the division considers necessary for the proper administration of this part 15 and may require an audit to be made of the books of account and records when the division considers it necessary by an auditor, selected by the director, who shall likewise have access to all the books and records of the licensee, and the licensee may be required to pay the expense of the audit.

(7) A sports governing body may petition the commission to restrict, limit, or exclude a type of wager the outcome of which is solely determined by the actions of a single player. Upon receiving such a petition, the commission shall review the request in good faith, seek input from the sports betting operators on the petition, and, if the commission deems it appropriate, adopt rules to restrict, limit, or exclude that type of wager.

(8) Repealed.

Source: L. 2019: Entire part added, (HB 19-1327), ch. 347, p. 3222, � 12, effective August 2. L. 2024: (5)(d) and (8) repealed, (HB 24-1450), ch. 490, p. 3431, � 99, effective August 7.

44-30-1506. Operations - eligibility to place bets - record-keeping - information sharing. (1) A person must be at least twenty-one years of age to place a bet.

(2) (a) A sports betting operator shall adopt procedures to prevent persons who are prohibited from wagering on sports events from doing so. In the event of a wager placed by a person later determined to be ineligible, the sports betting operator shall refund the wager if possible or, if a refund is not possible, shall remit the amount of the wager to the commission for transfer to the sports betting fund.

(b) A sports betting operator shall not accept a bet from any person whose identity is known to the sports betting operator and:

(I) Whose name appears on the exclusion list maintained by the master licensee with whom the sports betting operator has a contractual relationship; except that a person may not invalidate or retract a bet already placed at the time the person's name is placed on the exclusion list;

(II) Who is the sports betting operator, a director, officer, owner, or employee of the sports betting operator, or any relative of the sports betting operator living in the same household as the sports betting operator;

(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.

(4) A sports betting operator shall adopt procedures to obtain personally identifiable information from any individual who places any single bet in an amount of ten thousand dollars or more on a sports event while physically present in a casino, and all disclosure and reporting requirements otherwise applicable to wagers under this article 30 apply to the conduct of sports betting under this part 15.

(5) (a) A sports betting operator shall promptly report to the division:

(I) Any criminal or disciplinary proceedings commenced against the sports betting operator or its employees in connection with the operations of the sports betting operation or internet sports betting operation;

(II) Any abnormal betting activity or discernible patterns that may indicate a concern about the integrity of a sports event or events;

(III) Any other conduct with the potential to corrupt a betting outcome of a sports event for purposes of financial gain, including match fixing or the use of material, nonpublic information to place bets or facilitate another person's sports betting activity; and

(IV) Suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place bets, or use of false identification.

(b) In addition to reporting to the division as required by subsection (5)(a) of this section, a sports betting operator shall maintain records of all bets placed, including personally identifiable information of the bettor when available, amount and type of bet, time the bet was placed, location of the bet, including internet protocol address if applicable, the outcome of the bet, and records of abnormal betting activity. A sports betting operator shall maintain these records for at least three years after the sports event occurs and shall make the records available for inspection upon request of the division or as required by court order.

(c) The division shall, given good and sufficient reason, cooperate with a sports governing body and sports betting operators to ensure the timely, efficient, and accurate sharing of information for the sole purpose of ensuring the integrity of their sport.

(d) The division and sports betting operators shall, given good and sufficient reason, cooperate with investigations conducted by sports governing bodies and shall cooperate with law enforcement agencies, including providing or facilitating the provision of account-level betting information and any available audio or video files relating to persons placing bets.

(e) The division may share any information obtained under this section with any law enforcement entity, team, sports governing body, or regulatory agency that requests information from the division in connection with an investigation conducted by that entity, team, sports governing body, or regulatory agency. The division may redact or aggregate information to protect the privacy of persons who are not subjects or targets of the investigation.

(6) All bets authorized under this part 15 must be initiated, received, and otherwise made within Colorado unless otherwise determined by the division in accordance with applicable federal and state laws. Consistent with the intent of the United States congress as articulated in the federal Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. secs. 5361 to 5367, the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this provision does not determine the location or locations in which the wager is initiated, received, or otherwise made.

(7) Each sports betting operator may set such bet limits as it sees fit, in its sole discretion, and may make those limits specific to a form or class of sports betting, a specific sports event, or a person placing a bet, based on individual or aggregate data concerning bets to be placed or that have been placed historically by that individual or on that form or class of sports betting or on that sports event.

(8) An internet sports betting operator shall accept bets only from persons physically located within the state of Colorado. An internet sports betting operator may establish and fund sports wagering accounts electronically through commission-approved mobile applications and digital platforms.

Source: L. 2019: Entire part added, (HB 19-1327), ch. 347, p. 3224, � 12, effective May 1, 2020.

Editor's note: Section 16(2) of chapter 347 (HB 19-1327), Session Laws of Colorado 2019, provides that this section takes effect May 1, 2020, only if, at the November 2019 statewide election, a majority of voters approve the ballot question submitted pursuant to � 44-30-1514. That ballot question, referred to the registered electors as proposition DD, was approved on November 5, 2019, and was proclaimed by the Governor on December 20, 2019. The vote count for the measure was as follows:

FOR: 800,745

AGAINST: 756,712