SPORTS BETTING REGULATIONS
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Code of Colorado Regulations › 200 Department of Revenue › 207 Division of Gaming - Rules promulgated by Gaming Commission › 1 CCR 207-2
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BASIS AND PURPOSE FOR RULE 1
The purpose of Rule 1 is to provide definitions of various terms used throughout the
sports betting Rules of the Colorado Limited Gaming Control Commission so that the
Rules can be uniformly applied and understood. The definitions in 44-30-103, C.R.S.
and 44-30-1501 C.R.S. shall also apply throughout this document. The statutory basis
for Rule 1 is found in sections 44-30-102, C.R.S., 44-30-104, C.R.S., 44-30-201, C.R.S.,
44-30-202, C.R.S., 44-30-203, C.R.S., and 44-30-302, C.R.S.
RULE 1
GENERAL RULES AND REGULATIONS Effective 4/14/20
1.1
Applicable Laws, Rules, and Regulations.
(1)
In order to ensure that sports betting is seamlessly integrated into the regulatory
system established for limited gaming under article 30, title 44, and except as
otherwise provided in subsection (2), the applicable Gaming Rules and
Regulations, located at 1 CCR 207-1, shall apply, unless such application
conflicts with any other provision of these Sports Betting Rules and Regulations
or the context otherwise requires. Where the Gaming Rules and Regulations are
inconsistent with these Sports Betting Rules and Regulations, the Sports Betting
Rules and Regulations must be followed. The application of relevant Gaming
Rules and Regulations shall not be construed as to conflict with any other
provision of these Sports Betting Rules, article 30, title 44 or any other applicable
statute.
(2)
Notwithstanding subsection (1) of this Rule 1.1, the following Gaming Rules and
Regulations shall not apply to the Sports Betting Rules and Regulations: 1 CCR
207-1, Rules 8-11; 14; 17; and 21-24.
(3)
Nothing in these rules shall be interpreted to be inconsistent with currently
enacted and applicable Colorado state and federal law.
Code of Colorado Regulations
Secretary of State
State of Colorado
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1.2
Authorized sports event.
hall not apply to the Sports Betting Rules and Regulations: 1 CCR
207-1, Rules 8-11; 14; 17; and 21-24.
(3)
Nothing in these rules shall be interpreted to be inconsistent with currently
enacted and applicable Colorado state and federal law.
Code of Colorado Regulations
Secretary of State
State of Colorado
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1.2
Authorized sports event.
(1)
Sports betting permitted pursuant to article 30 of title 44, C.R.S., shall include
only the following: Any individual or team sport or athletic event in which the
outcome is not determined solely by chance, whether amateur or professional,
including an Olympic or international sport or athletic event and any collegiate
sports event.
(2)
Any portion of an authorized sport or athletic event, including the individual
performance statistics of athletes in a sports event or combination of sports
events.
(3)
An authorized sanctioned motor sport; and
(4)
Any other sports event or combination of sports events as authorized by the
Commission by Rule.
1.3
Unauthorized sports betting.
(1)
No licensee shall conduct or permit on its premises or through any online or
electronic means any sports betting, except sports betting which is conducted
according to all the Rules and Regulations promulgated by the Commission, or
the laws and regulations governing other betting activities which are licensed or
approved by an agency of the State of Colorado.
(2)
No person shall make any unauthorized wager or conduct any sports betting
activity on its premises or through any online or electronic means unless in
accordance with the act, the Rules and Regulations promulgated by the
Commission, or the laws and regulations governing other betting activities which
are licensed or approved by an agency of the State of Colorado.
ency of the State of Colorado.
(2)
No person shall make any unauthorized wager or conduct any sports betting
activity on its premises or through any online or electronic means unless in
accordance with the act, the Rules and Regulations promulgated by the
Commission, or the laws and regulations governing other betting activities which
are licensed or approved by an agency of the State of Colorado.
(3)
No licensee shall conduct or permit on its premises or through any online or
electronic means any sports betting on a high school sports event, a video game
that is not sanctioned by a sports governing body or equivalent as an electronic
competition, or proposition bets on collegiate sports events; and
(4)
No sports bet shall be accepted from a person under the age of twenty-one
years, that does not originate in the State of Colorado, and that does not conform
to the laws or Regulations.
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Rule 1.4
Definitions
(1) “ACH” means Automated Clearing House, which is a network that connects all
banking and financial institutions within the United States.
(2)
“Additional Fee” means any fee, including but not limited to monthly fees or sign-
up costs, that a Sports Betting Operator or an Internet Sports Betting Operator
charges to a patron that allows the patron to place, buy or sell wagers with the
Sports Betting Operator or Internet Sports Betting Operator in the State of
Colorado. Additional Fees are prohibited.
(3)
“Affiliate” means an individual or entity that promotes sport betting websites in
exchange for a Commission or fee.
(4)
“Age and identity verification” means a method, system, or device used by a
Sports Betting Operation to verify the validity of a patron’s age and the patron’s
identity.
(5)
“Authentication process” means a method used by a Sports Betting Operation to
verify the validity of software.
(6)
“Back” means to wager on a selected outcome occurring (betting that an
outcome will occur) in a given market.
4)
“Age and identity verification” means a method, system, or device used by a
Sports Betting Operation to verify the validity of a patron’s age and the patron’s
identity.
(5)
“Authentication process” means a method used by a Sports Betting Operation to
verify the validity of software.
(6)
“Back” means to wager on a selected outcome occurring (betting that an
outcome will occur) in a given market.
(7)
“Canceled wager” means a wager that has been canceled by the Sports Betting
Operation due to any issue with an event that prevents its completion.
(8)
“Card” is the list of Sports Events from which a patron can make selections for a
given Pool. Effective 12/15/20
(9)
“Corrective wager” means an exchange wager placed by the Internet Sports
Betting Operator or Sports Betting Operator in the market offered by that
operator, under circumstances approved by the Director, in order to address the
impact on that market of the cancellation or voiding of a given matched wager or
given part of a matched wager.
(10)
“Entity wagering” means an entity or person, other than an individual acting in
their personal name within the State of Colorado, that has funds on deposit with
an Internet Sports Betting Operator or Sports Betting Operator by placing
wagers, and buying and selling wagers on the Exchange. Entity wagering is
prohibited. The activity of Market Makers that complies with Rule 7.13(7) does
not constitute entity wagering.
(11)
“Event number” means a set of alpha and/or numeric characters that
corresponds to a sports event or an event ancillary to a sports event.
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placing
wagers, and buying and selling wagers on the Exchange. Entity wagering is
prohibited. The activity of Market Makers that complies with Rule 7.13(7) does
not constitute entity wagering.
(11)
“Event number” means a set of alpha and/or numeric characters that
corresponds to a sports event or an event ancillary to a sports event.
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(12)
“Exchange” means a system operated by the Internet Sports Betting Operator or
Sports Betting Operator in which the Internet Sports Betting Operator or Sports
Betting Operator accepts, matches, and/or cancels wagers to back or lay
outcomes on a sporting event approved on the Colorado Division of Gaming
Official Sports Betting Catalog of Events and Wagers, or Official Catalog of Fixed
Odds Wagering, as permitted under Rule 5.4.
(13)
“Exchange bets” is a reporting term used to derive net sports betting proceeds,
and shall be calculated as the cumulative risk taken by patrons on a market on
each gaming day
(14)
“Exchange bets paid” is a reporting term used to derive net sports betting
proceeds, and shall be calculated as the cumulative amount paid out to patrons
on a market on each gaming day. Exchange bets paid shall not include any
commission collected by the Internet Sports Betting Operator or Sports Betting
Operator approved to conduct exchange wagering.
(15)
“Exchange wagers” means wagers placed in an exchange wagering system by
those present in this state on the results of a sporting event approved on the
Colorado Division of Gaming Official Sports Betting Catalog of Events and
Wagers, or Official Catalog of Fixed Odds Wagering, as permitted under Rule
5.4.
(16)
“Exchange wagering” means the form of wagering, authorized by this section
7.13, in which patrons place wagers that can be matched by an exchange
wagering system to become back or lay wagers, and which wagering is
conducted by the Internet Sports Betting Operator or Sports Betting Operator
approved to conduct exchange wagering.
cial Catalog of Fixed Odds Wagering, as permitted under Rule
5.4.
(16)
“Exchange wagering” means the form of wagering, authorized by this section
7.13, in which patrons place wagers that can be matched by an exchange
wagering system to become back or lay wagers, and which wagering is
conducted by the Internet Sports Betting Operator or Sports Betting Operator
approved to conduct exchange wagering.
(17)
“Exchange wagering system” means a component of the sports betting system
through which exchange wagers are processed.
(18)
“Free bet” means a bet made by patrons using non-cashable vouchers, coupons,
electronic credits or electronic promotions provided by Sports Betting Operations.
(19)
“Independent Integrity Monitoring Provider” means an independent individual or
entity approved by the Director or Director’s designee to receive reports of
unusual betting activity from a Sports Betting Operation for the purpose of
assisting in identifying suspicious betting activity.
(20)
“Internet Sports Betting Operator” means a person contracted by a Master
License that is licensed to operate an internet Sports Betting Operation in which
customers place bets within the State of Colorado on authorized sports events
through a customer’s personal computer, mobile or interactive device and
accepted through an online gaming system approved by the Division. 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.
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(21)
"Lay" means to wager on a selected outcome not occurring (betting the outcome
will not occur) in a given market.
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.
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(21)
"Lay" means to wager on a selected outcome not occurring (betting the outcome
will not occur) in a given market.
(22)
“Market Maker” means an entity or individual other than an individual acting in
their personal name, who participates in revenue sharing, and provides odds
and/or liquidity, to an Internet Sports Betting Operator or Sports Betting Operator
that is operating an Exchange.
(23)
“Master License” means a person, that holds a retail gaming license as described
in section 44-30-501 (1)(c), issued a sports betting license by the Commission
pursuant to section 44-30-1505 (1)(a), that authorizes the licensee to either
conduct sports betting and internet sports betting itself or contract with a Sports
Betting Operator, an internet Sports Betting Operator, or both, to conduct sports
betting.
(24)
“Net sports betting proceeds” means the total amount of all bets placed by
players in a Sports Betting Operation or internet Sports Betting Operation,
excluding free bets, less all payments to players and less all excise taxes paid
pursuant to federal law. Payments to players include all payments of cash
premiums, merchandise, or any other thing of value.
(25)
“Online Sports Betting Operation” means a Sports Betting Operation in which
wagers on sports events are made through personal computers, or mobile or
interactive devices, and accepted through an online gaming system approved by
the Division.
(26)
“Pool” means a betting or promotional offering where patrons may make
selections of outcomes on a set number of Sports Events on a Card in order to
enter for a chance to win all or a portion of the Prize Pool.
(27)
“Prize pool” means the prizing available for an individual pool.
computers, or mobile or
interactive devices, and accepted through an online gaming system approved by
the Division.
(26)
“Pool” means a betting or promotional offering where patrons may make
selections of outcomes on a set number of Sports Events on a Card in order to
enter for a chance to win all or a portion of the Prize Pool.
(27)
“Prize pool” means the prizing available for an individual pool.
(28)
“Prohibited sports betting participant” means any person who is prohibited
pursuant to 44-30-1502, C.R.S.; section 44-30-1506 (b)(II)—(IV), C.R.S.; or is a
person under the age of 21.
(29)
“Proposition (Prop) bet” means a bet specifically naming an individual participant,
or if a team sport, a specific position on a team, thus constituting a bet upon the
actions of that individual or position, regarding the occurrence or non-occurrence
of a certain outcome during an event that does not directly reflect the event’s final
outcome. Amended temp. 4/30/20, Amended perm. 8/14/20
(30)
“Rake” means the fee that is deducted by a Sports Betting Operation from entry
fees paid by patrons who participate in a Pool.
(31)
“Rake Adjustment” means an adjustment made by the Sports Betting Operation
to account for any shortfall in connection with a Pool.
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(32)
“Self-service betting device (kiosk)” means an automated device used by patrons
to make wagers on sporting events; the kiosk may also be used to obtain betting
information, process sports betting vouchers and betting tickets, and any other
automated functions approved by the Commission. All self-service betting
devices must be located in an approved designated sports betting wagering area.
(33)
“Shared Liquidity Pool” means a betting or promotional offering in Colorado and
at least one other jurisdiction where patrons may make selections of outcomes
on a set number of Sports Events on a Card in order to enter for a chance to win
all or a portion of the Prize Pool.
the Commission. All self-service betting
devices must be located in an approved designated sports betting wagering area.
(33)
“Shared Liquidity Pool” means a betting or promotional offering in Colorado and
at least one other jurisdiction where patrons may make selections of outcomes
on a set number of Sports Events on a Card in order to enter for a chance to win
all or a portion of the Prize Pool.
(34)
“Sport Betting Operator” means a person that is licensed to operate a Sports
Betting Operation in which customers place bets in person at a designated
physical location. A Sports Betting Operator may take authorized sports bets
within the designated sports betting wagering area during such times as the
Master license that they have contracted with operates.
(35)
“Sports Betting Operation” means a licensed wagering operation in which bets
are placed on sports events through any system or method of betting, including
single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange
wagering, in-game betting, in-play bets, proposition bets other than those relating
to collegiate sports events, or straight bets.
(36)
“Sports betting system” means all equipment and software used in conjunction
with the Sports Betting Operation, including but not limited to, the following: (1)
sports betting interactive components, including all hardware, software and
associated equipment that comprise the sports betting platform for the purpose of
authorizing sports betting and online and mobile sports betting, (2) self-service
sports betting devices, (3) ticket/voucher redemption devices, and (4) any other
device, service or system that the Commission determines to be related to the
Sports Betting Operation.
(37)
“Sports betting wagering area” means an area(s), as designated by a licensee
and approved by the Division, in which sports betting is conducted by a master
license or Sports Betting Operator.
, (2) self-service
sports betting devices, (3) ticket/voucher redemption devices, and (4) any other
device, service or system that the Commission determines to be related to the
Sports Betting Operation.
(37)
“Sports betting wagering area” means an area(s), as designated by a licensee
and approved by the Division, in which sports betting is conducted by a master
license or Sports Betting Operator.
(38)
“Sports event” means any individual or team sport, athletic contest, or athletic
event not prohibited by the Director, including all professional electronic sports
and competitive video game events that are not sponsored by high schools, and
do not include high school teams, and do not include a majority of participants
that are under the age of 18 years.
(39)
“Sports governing body” means an organization that performs a regulatory or
sanctioning function over the conduct of a sports event.
(40)
“Sports bet” means the business of accepting approved bets by a licensee on
any sports event by any approved system or method of betting.
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(41)
“Sports betting manager” means a key employee of a Master licensee or a
qualified employee of a Sports Betting Operator or Internet Sports Betting
Operator, responsible for the operations of sports betting and final approval of all
odds established on any wager made pursuant to this chapter.
(42)
“Sports betting system” means all equipment and software used in conjunction
with the operation of a Sports Betting Operation.
(43)
“Sports betting ticket” means a printed record issued or an electronic record
maintained by the sports betting system that evidences a sports wager.
(44)
“Sports betting voucher” means a printed record issued by a sports betting
system that may be used to fund a sports wager.
(45)
“Suspicious betting activity” means unusual betting activity that cannot be
explained and is indicative of match fixing, the manipulation of an event, misuse
of inside information, or other prohibited activity.
the sports betting system that evidences a sports wager.
(44)
“Sports betting voucher” means a printed record issued by a sports betting
system that may be used to fund a sports wager.
(45)
“Suspicious betting activity” means unusual betting activity that cannot be
explained and is indicative of match fixing, the manipulation of an event, misuse
of inside information, or other prohibited activity.
(46)
“Unusual betting activity” means abnormal betting activity exhibited by patrons
and deemed by the Sports Betting Operation as a potential indicator of
suspicious activity. Abnormal betting activity may include the size of a patron's
wager or increased betting volume on a particular event or wager type.
(47)
“Voided wager” means a wager voided by a Sports Betting Operation with
supervisor approval, pursuant to the Sports Betting Operation’s internal controls
for betting a specific event.
BASIS AND PURPOSE FOR RULE 2
The purpose of Rule 2 is, with respect to the regulation of sports betting, to delegate
certain authority to the Director or other Division agent; provide for the review of any
action taken pursuant to such authority; provide for the reference by the Director of
matters delegated to the Director back to the Commission; and to establish procedures
for Commission actions and hearings. Rule 2 also empowers the Commission to
contract for legal counsel, and directs the Licensee to obtain moneys owed to a
deceased patron and properly distribute such moneys. The statutory basis for Rule 2 is
found in sections 44-30-201, C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-301,
C.R.S., 44-30-302, C.R.S., 44-30-507, C.R.S., 44-30-705, C.R.S., 24-4-105, C.R.S. and
part 15 of article 30 of title 44, C.R.S.
RULE 2
POWERS AND DUTIES OF COMMISSION AND DIRECTOR
2.1
Commission action.
In addition to meeting in person, the Commission may take action by telephone or video
conferencing. If telephone or video conferencing is used, the Director must participate in
the meeting and take minutes of the Commission's action
, C.R.S., 44-30-705, C.R.S., 24-4-105, C.R.S. and
part 15 of article 30 of title 44, C.R.S.
RULE 2
POWERS AND DUTIES OF COMMISSION AND DIRECTOR
2.1
Commission action.
In addition to meeting in person, the Commission may take action by telephone or video
conferencing. If telephone or video conferencing is used, the Director must participate in
the meeting and take minutes of the Commission's action. Telephone or video
conferencing is a meeting of the Commission.
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2.2
Recessed meetings.
Any meeting of the Commission may be recessed to consider matters duly noticed as
items on the agenda of that meeting, to such time and place as the Commission may
designate. Notice of a recessed meeting to consider matters duly noticed as items on
the agenda may be given by announcement at the meeting, but where any other
matters are to be considered at a recessed meeting, such matters must be duly noticed
as required by statute.
2.3
Appointment of committees.
The Chairperson of the Commission may at the Chairperson's discretion appoint
committees to study and report to the Division or the Commission on any matter
appropriate to the Commission's administration of the Colorado Limited Gaming Act or
these Rules.
2.4
Right of review.
The Commission may review any action taken by the Director by its own motion, by
direction of the Chairperson, or by a request from a member of the Commission, the
Attorney General, the Executive Director or the Governor.
2.5
Right of reference.
The Director, with approval of the Commission, may refer any matters delegated to the
Director back to the Commission for its decision.
2.6
Delegation.
Unless the Commission determines otherwise, the Director may delegate an act
required to be performed by the Director to any agent or employee of the Division.
2.7
Authority of Director.
e Executive Director or the Governor.
2.5
Right of reference.
The Director, with approval of the Commission, may refer any matters delegated to the
Director back to the Commission for its decision.
2.6
Delegation.
Unless the Commission determines otherwise, the Director may delegate an act
required to be performed by the Director to any agent or employee of the Division.
2.7
Authority of Director.
(1)
The Director may issue key employee and support licenses, without necessity for
Commission approval, to qualified applicants upon submission to the Director of
proper applications, costs, and fees.
(2)
The Director may issue temporary, key employee and support licenses to
qualified applicants upon the same terms and conditions as temporary licenses
are issued by the Commission to applicants for other types of licenses.
(3)
The Director may deny a key employee license application for any reason that a
support license application may be denied.
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(4)
The Director may approve the suitability of officers and Directors of a licensee,
without necessity for Commission approval, provided such officers or Directors
have less than ten percent ownership equity in the licensee.
(5)
The Director may deny the suitability of officers and Directors of a licensee or
applicant for any reason that a key employee license application may be denied.
(6)
The Director may approve ownership changes in a licensee, without necessity for
Commission approval, when:
(a)
The proposed change only reallocates ownership shares among persons
whom the Commission has previously approved as owners; and
e Director may deny the suitability of officers and Directors of a licensee or
applicant for any reason that a key employee license application may be denied.
(6)
The Director may approve ownership changes in a licensee, without necessity for
Commission approval, when:
(a)
The proposed change only reallocates ownership shares among persons
whom the Commission has previously approved as owners; and
(b)
When no person will attain a total effective ownership equity of ten percent
or greater, when such person previously held less than ten percent equity.
(7)
All such ownership changes approved by the Director must be reported to the
Commission at the time of the next renewal application of the licensee.
2.8
Petition for hearing in an adjudicatory proceeding.
A person aggrieved by an action of the Commission or the Director that was taken
without a hearing may, within 30 days following the date of the action, petition the
Commission for a hearing. The Commission may in its discretion, disallow the petition,
determine that it be treated as one for a declaratory order, or it may grant a hearing to
consider the matters alleged in the petition. If a hearing is granted, the Commission may
direct the petitioner to provide certain information to the Division prior to the hearing or
grant the hearing conditioned upon the fulfillment by the petitioner of other reasonable
terms and conditions. The hearing must be held at a time and place convenient for the
Commission and the petitioner. The hearing shall be considered an adjudicatory
proceeding. The Commission shall issue all decisions in any adjudicatory proceeding in
writing. Commission actions shall be deemed final in such cases upon the mailing of the
decision by first class mail to the petitioner's address listed in the petition.
2.9
Summoning of licensee.
The Commission may summon any licensee or licensee's agents or employees to
appear to testify before it or its agents with regard to the conduct of the licensee or the
agents or employees of the licensee
writing. Commission actions shall be deemed final in such cases upon the mailing of the
decision by first class mail to the petitioner's address listed in the petition.
2.9
Summoning of licensee.
The Commission may summon any licensee or licensee's agents or employees to
appear to testify before it or its agents with regard to the conduct of the licensee or the
agents or employees of the licensee. The testimony may be under oath and may
embrace any matters which the Commission or its agents consider relevant to the
discharge of its official duties. Testimony so taken may be used by the Commission as
evidence in any proceeding or matter then before it or which may later come before it.
Failure to appear and testify fully at the time and place designated, unless excused,
may constitute grounds for disciplinary action against a license held by the person
summoned, that person's principal or that person's employer.
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2.10 Enforcement powers.
In addition to other powers and duties, the Director or an employee or agent of the
Division by direction of the Director may perform the following activities:
(1)
Without notice, inspect and examine premises where sports betting or internet
sports betting is conducted or sports betting system devices or equipment are
located, sold, distributed, or stored;
(2)
Without notice or hearing, examine, inspect, seize or remove from the premises
and impound any sports betting system devices, equipment or supplies for the
purposes of examination and inspection;
(3)
At any time when business is being conducted, inspect, examine and photocopy,
or remove and impound all records of applicants and licensees;
or equipment are
located, sold, distributed, or stored;
(2)
Without notice or hearing, examine, inspect, seize or remove from the premises
and impound any sports betting system devices, equipment or supplies for the
purposes of examination and inspection;
(3)
At any time when business is being conducted, inspect, examine and photocopy,
or remove and impound all records of applicants and licensees;
(4)
Investigate the conduct of all licensees, their employees, and other persons
having any involvement with a licensee or licensed establishment, to assist in the
enforcement of article 30 of title 44, C.R.S., and to ensure that there is no
involvement in or with a licensee or a licensed establishment by unqualified or
unsuitable persons.
2.11 Filing or notice.
If a filing or notice to the Commission or Director is permitted or required by these
Rules, the filing or notice may be delivered in person or mailed to the Division at 1707
Cole Boulevard, Suite 300, Lakewood, Colorado 80401. A filing or notice is complete on
the date it is received by the Division. Notification to the Division shall be deemed
notification to the Commission for purposes of these Rules.
2.12 Attorney for Commission.
The Commission shall contract for legal counsel with the Colorado Attorney General.
2.13 Death of a sports betting patron.
All sports betting tickets or vouchers in the possession of a sports betting patron who
dies before such sports betting tickets or vouchers are surrendered by such patron, and
if the death of the patron is known or disclosed to the licensee, shall be paid by the
licensee by check drawn upon a financial institution, chartered by any state or the
United States Government, to the estate of the deceased patron unless the licensee is
directed otherwise pursuant to an appropriate judicial order.
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by such patron, and
if the death of the patron is known or disclosed to the licensee, shall be paid by the
licensee by check drawn upon a financial institution, chartered by any state or the
United States Government, to the estate of the deceased patron unless the licensee is
directed otherwise pursuant to an appropriate judicial order.
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BASIS AND PURPOSE FOR RULE 3
The purpose of Rule 3 is to enable applications, investigations and licensure as related
to sports betting, including to establish and provide the specific information required on
license applications; to establish license fees for each type of license; to establish
investigation fees for certain applicants and deposit procedures for investigation fees; to
establish procedures for conducting background checks on applicants and other
interested persons and assessing the costs of such background checks; to require
certain information regarding the premises the applicant wishes to be licensed, and to
provide a procedure for approval of modifications of such premises; and to provide for
the issuance of conditional licenses. The statutory basis for Rule 3 is found in sections
44-30-201, C.R.S.; 44-30-203, C.R.S.; 44-30-302, C.R.S.; 44-30-507, C.R.S., and part
15 of article 30 of title 44, C.R.S.
RULE 3
APPLICATIONS, INVESTIGATIONS AND LICENSURE Effective
4/14/20
3.1
License classifications.
In addition to the sports betting licenses authorized by section 44-30-1505(1)(a)–(c),
C.R.S, the Commission authorizes the following additional license classifications.
(1)
Vendor major license.
(a)
Any person who is employed for, contracts with, or acts on behalf of an
establishment licensed to operate sports betting, and who performs one or
more of the following duties must hold a vendor major license:
ion to the sports betting licenses authorized by section 44-30-1505(1)(a)–(c),
C.R.S, the Commission authorizes the following additional license classifications.
(1)
Vendor major license.
(a)
Any person who is employed for, contracts with, or acts on behalf of an
establishment licensed to operate sports betting, and who performs one or
more of the following duties must hold a vendor major license:
(i)
Manages, administers, or controls wagers that are initiated,
received, or made on a sports betting gaming system;
(ii)
Manages, administers, or controls the games with which the
wagers that are initiated, received, or made on a sports betting
gaming system are associated;
(iii)
Maintains or operates the software or hardware of a sports betting
gaming system;
(iv)
Provides products, services, information or assets to an
establishment licensed to operate sports betting and/or receives
therefor a percentage of gaming revenue from the establishment’s
sports betting system.
(2)
A vendor major license expires two years after the date of issuance but may be
renewed upon the filing and approval of an application for renewal.
(3)
Vendor minor license.
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(a)
Any person who is employed for, contracts with, or acts on behalf of an
establishment licensed to operate sports betting, and is involved in the
operation of sports betting, other than those activities specified under 30-
301 (1), must hold a vendor minor license.
(b)
A vendor minor license expires two years after the date of issuance but
may be renewed upon the filing and approval of an application for
renewal.
(4)
Key employee license.
(a)
The person designated to be responsible for the operation of a sports
betting operation must hold a key employee license.
(b)
Persons licensed as key employees for limited gaming purposes need not
obtain a separate key employee license for sports betting.
wo years after the date of issuance but
may be renewed upon the filing and approval of an application for
renewal.
(4)
Key employee license.
(a)
The person designated to be responsible for the operation of a sports
betting operation must hold a key employee license.
(b)
Persons licensed as key employees for limited gaming purposes need not
obtain a separate key employee license for sports betting.
(c)
The determination of key employee status shall follow the same procedure
as that set out in section 44-30-502, C.R.S., for key employees for limited
gaming purposes.
(d)
A key employee license expires two years after the date of issuance but
may be renewed upon the filing and approval of an application for
renewal.
(5)
Support license.
(a)
All employees of a sports betting licensee not otherwise required to hold a
key employee license, a vendor major license, or a vendor minor license
may be required to hold a support license.
(b)
Persons licensed as support employees for limited gaming purposes need
not obtain a separate support employee license for sports betting.
(c)
No person required to hold a support license shall be an employee of, or
assist, any sports betting licensee in the licensee’s sports betting
operation until the person obtains a valid support license.
(d)
A support license expires two years after the date of issuance but may be
renewed upon the filing and approval of an application for renewal.
3.2
Qualifications for licensure.
To qualify for licensure an applicant must:
(1)
Be at least twenty-one years of age;
(2)
Possess a suitable character as determined by the Director or the Commission;
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(3)
For applicants for a master license, possess premises to be used for sports
betting that are deemed suitable by the Commission and that satisfy all health
and safety requirements; and
nsure an applicant must:
(1)
Be at least twenty-one years of age;
(2)
Possess a suitable character as determined by the Director or the Commission;
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(3)
For applicants for a master license, possess premises to be used for sports
betting that are deemed suitable by the Commission and that satisfy all health
and safety requirements; and
(4)
Comply with all specific laws, rules and regulations regulating sports betting in
Colorado, and any other regulatory or taxing authority.
3.3
Applications.
(1)
An applicant for any type of license must apply on forms provided by the Division.
Such application forms shall be completed under penalty of perjury. The
application forms may include questions concerning the following:
(a)
Personal background information;
(b)
Licensing background;
(c)
Organizational information;
(d)
Financial information;
(e)
Participation in legal or illegal activities in Colorado or other jurisdictions,
including foreign countries;
(f)
Criminal record information;
(g)
Information concerning all pecuniary and equity interests in the applicant;
and
(h)
Other information as required.
The application forms shall be accompanied and supplemented by such
documents and information as may be specified or required. Failure to supply the
information requested within five days after the request has been made by the
Division constitutes grounds for delaying consideration of the application.
rning all pecuniary and equity interests in the applicant;
and
(h)
Other information as required.
The application forms shall be accompanied and supplemented by such
documents and information as may be specified or required. Failure to supply the
information requested within five days after the request has been made by the
Division constitutes grounds for delaying consideration of the application.
(2)
Renewal applications for licenses may be submitted and renewed upon the filing
and approval of an application for renewal. Renewal applications for master
licenses, sports betting operator licenses, internet sports betting operator
licenses, vendor major licenses, and vendor minor licenses must be received by
the Division 120 days before the expiration of the current license. Renewal
applications for support employee and key employee licenses must be received
by the Division 30 days before the expiration of the current license. Renewal
applicants who fail to submit their completed applications when due shall not be
considered to have made a timely and sufficient application for renewal, as such
term is used in section 24-4-104(7), C.R.S.
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(3)
When a key employee license or support employee license expires prior to
renewal, the applicant for re-licensure shall file an original license application and
shall pay the fee for an original application, and the Division shall process the
application as an original license application.
rm is used in section 24-4-104(7), C.R.S.
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(3)
When a key employee license or support employee license expires prior to
renewal, the applicant for re-licensure shall file an original license application and
shall pay the fee for an original application, and the Division shall process the
application as an original license application.
(4)
Applicants, licensees, and others who submit documents to the Division or the
Commission in connection with any investigation or inquiry are advised to keep a
complete and detailed record of all such submissions. Once submitted, the
documents become part of the Division’s investigative files and work papers, and
are presumed to be confidential and protected pursuant to section 44-30-1507,
C.R.S. Because of the inconvenience to the Division in segregating this
information from the investigative files, and in filtering confidential materials,
disclosure to the person who initially submitted the record is not favored. The
Commission may grant such a request only upon a showing of compelling cause.
3.4
License fees.
(1)
A non-refundable fee for issuance of a two-year license must accompany an
application for any license required by this Rule.
(2)
The amount of the fee required by subsection (1) shall be set pursuant to the
annual fee schedule proposed by the Director and approved by the Commission.
3.5
Investigation and background check costs.
(1)
All applicants for licenses shall pay the costs of investigations into their
backgrounds, suitability, and qualifications for licensure.
(a)
The cost of such investigations shall be at the current hourly rate set by
the formula prepared by the Director and approved by the Commission for
each hour spent by investigators of the Division, the Colorado Bureau of
Investigation, or the Department of Revenue investigating the applicants
until the conclusion of the investigation.
backgrounds, suitability, and qualifications for licensure.
(a)
The cost of such investigations shall be at the current hourly rate set by
the formula prepared by the Director and approved by the Commission for
each hour spent by investigators of the Division, the Colorado Bureau of
Investigation, or the Department of Revenue investigating the applicants
until the conclusion of the investigation.
(b)
All such applicants shall also pay the Division for the following actual costs
incurred in conducting the background investigations: transportation,
lodging, meals, and other expenses associated with traveling; significant
office expense; document reproduction costs, preparation time; time
necessary for administration of the investigation (including additional
staffing on a temporary basis); and other similar expenses incurred until
the conclusion of the investigation.
(c)
An investigation concludes upon the issuance by the Commission of an
initial order concerning the issuance or denial of the license, upon the
issuance by either the Commission or the Division of an order approving
the withdrawal of the application, or upon the issuance by the Division of
an order of denial of the license which is not appealed to the Commission.
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(2)
Additionally, applicants 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
otherwise. 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. The applicant for a sports
betting license shall be responsible for the actual costs of submitting such
fingerprints for investigation
ll 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. The applicant for a sports
betting license shall be responsible for the actual costs of submitting such
fingerprints for investigation. The total amount of the fee for issuance of a
license, investigation fees, and fees for the background check for an applicant for
a sports betting license may not exceed one hundred and twenty-five thousand
dollars.
(3)
Before any such investigations are conducted, each original applicant for a sports
betting operator license or internet sports betting operator license, or vendor
major license shall pay a deposit of $10,000 to the sports betting fund. Upon
notice to the applicant, all other license types may be required to pay a deposit to
the sports betting fund in an amount, which, in the Director’s discretion, is
sufficient to enable the investigation to be conducted.
(4)
As expenses are incurred, the Division shall draw upon the respective deposits in
the sports betting fund. Upon request, a statement of costs, draws upon deposit,
and deposit balance shall be sent to the applicant making the request.
(5)
When a deposit balance approaches zero dollars, or is forecasted to reach zero
dollars due to anticipated or known expenses which will be incurred in the future,
the Division may request a further deposit of an amount sufficient to cover the
anticipated expenses and which will prevent the account balance from becoming
negative. Until receipt of such further deposit, investigation of the application may
cease.
(6)
Where an applicant disputes any investigative charges, or the necessity for
further deposits, the applicant may request relief from the Commission, by
declaratory order or other appropriate motion, regarding the matters in dispute.
pated expenses and which will prevent the account balance from becoming
negative. Until receipt of such further deposit, investigation of the application may
cease.
(6)
Where an applicant disputes any investigative charges, or the necessity for
further deposits, the applicant may request relief from the Commission, by
declaratory order or other appropriate motion, regarding the matters in dispute.
(7)
No license, finding of suitability, or other approvals sought, shall be issued until
payment for the full amount of any negative deposit balance has been received
from the applicant.
(8)
Within 90 days of the conclusion of the investigation, any deposit balance shall
be returned to the applicant. A statement of costs, also called an account detail
report, draws upon deposit, and deposit balance shall accompany the return of
the deposit balance to the applicant.
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3.6
Contract approvals.
Applicants for a master license, sports betting operator license, internet sports betting
operator license, and vendor major license must provide, at the time of application,
contracts or proposed contracts with all other sports betting licensees or applicants for a
sports betting license, in a form as specified by the Division.
3.7
Retail gaming licenses.
Any applicant who holds a retail gaming license may apply for a master license. Upon
the applicant’s submission of an application and payment of all applicable fees, the
Commission may issue one master license for each retail gaming license the applicant
holds.
3.8
Waiver of privilege.
An applicant may claim any privilege afforded by the Constitution of the United States,
or of the State of Colorado in refusing to answer questions by the Division and the
Commission. However, a claim of privilege with respect to any testimony or evidence
pertaining to an application may constitute sufficient grounds for denial of an application
or revocation of a license.
3.9
Waiver of application requirements
ay claim any privilege afforded by the Constitution of the United States,
or of the State of Colorado in refusing to answer questions by the Division and the
Commission. However, a claim of privilege with respect to any testimony or evidence
pertaining to an application may constitute sufficient grounds for denial of an application
or revocation of a license.
3.9
Waiver of application requirements.
Business applicants for a sports betting license and licensees, or holding, intermediate
or subsidiary companies of an applicant or licensee, may petition the Division for a
waiver of the requirements listed in sections 44-30-1504(1) or (2), C.R.S. Waivers may
be granted in the discretion of the Director upon a showing of good cause, subject to
Commission approval.
3.10 Untrue statements.
The Commission may refuse to grant a license to an applicant who makes deliberate
misstatements, deliberate omissions, misrepresentations, or untruths in the application
or in connection with the applicant’s background investigation. Such conduct may also
constitute a class 6 felony.
3.11 Designated gaming area.
(1)
An applicant for a master license must specify the designated gaming area(s)
within the casino, if any, where sports betting will take place by providing the
following information:
(a)
An 8 1/2” x11” drawing to scale of the building, and each floor thereof, in
which sports betting shall be conducted.
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3.11 Designated gaming area.
(1)
An applicant for a master license must specify the designated gaming area(s)
within the casino, if any, where sports betting will take place by providing the
following information:
(a)
An 8 1/2” x11” drawing to scale of the building, and each floor thereof, in
which sports betting shall be conducted.
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A diagram, outlined in red, of the proposed designated gaming area(s) on
each floor within the building, and including the placement of any self-
service sports betting devices. No sports betting, except online sports
betting by a customer using his or her own computer or mobile or
interactive device, shall be conducted or permitted outside of the
designated gaming area(s). All persons participating in sports betting,
except online sports betting by a customer using his or her own computer
or mobile or interactive device, must stand or sit within the designated
gaming area(s); and no licensee shall permit any person to conduct or
participate in sports betting, except online sports betting by a customer
using his or her own computer or mobile or interactive device, who is not
within the designated gaming area(s). Nothing in this section, however,
shall be construed to permit violation of any fire safety, health or building
codes by any licensee. The designated gaming area(s) must be clearly
marked as such so that the patrons of each establishment licensed to
operate sports betting can readily discern the designated gaming area(s).
bile or interactive device, who is not
within the designated gaming area(s). Nothing in this section, however,
shall be construed to permit violation of any fire safety, health or building
codes by any licensee. The designated gaming area(s) must be clearly
marked as such so that the patrons of each establishment licensed to
operate sports betting can readily discern the designated gaming area(s).
(b)
A certificate of compliance approved by the local fire and building officials
which has been approved, or deemed approved, by the Colorado Division
of Fire Prevention and Control; and a written statement by the appropriate
local official that handicapped access to the designated gaming area(s)
has been provided.
(2)
Any master licensee may change the configuration of its designated gaming
area(s) upon prior approval of the Division. Application to modify the designated
gaming area(s) must be made on forms furnished by the Division. No application
to modify the designated gaming area(s) of any licensee shall be approved
unless the designated gaming area(s), as modified, meets the requirements of
article 30 of title 44, C.R.S., and the rules promulgated thereunder.
(3)
An applicant for a sports betting license, other than a master license, must
specify the portion of the master licensee’s premises, if any, where sports betting
will take place by submitting such information along with its contract with a
master licensee.
3.12 Temporary license.
(1)
The Commission may issue a temporary license to any applicant for a permanent
license.
(2)
No licensee issued a temporary license pursuant to this Rule 3 or part 15 of
article 30 of title 44, C.R.S., shall be entitled to receive any refund of the license
fee submitted in connection with the license application.
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Temporary license.
(1)
The Commission may issue a temporary license to any applicant for a permanent
license.
(2)
No licensee issued a temporary license pursuant to this Rule 3 or part 15 of
article 30 of title 44, C.R.S., shall be entitled to receive any refund of the license
fee submitted in connection with the license application.
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(3)
The Commission may change a temporary license into a permanent license
where: all investigations into the license application are complete; and the
Commission is satisfied the holder of a temporary license qualifies to hold a
permanent license.
(4)
When the Commission changes a temporary license into a permanent license,
the date of issuance of the permanent license shall be deemed to be the date
that the Commission approved the permanent license.
(5)
A temporary license may expire of its own accord, or it may be suspended,
revoked, or summarily suspended under the same terms and conditions as a
permanent license.
(6)
The Commission may issue consecutive temporary licenses in its discretion.
3.13 Approval with conditions or for a limited period.
The Commission may grant a license with special conditions or for a limited period, or
both.
3.14 Approval.
(1)
Except as otherwise provided in subsection (2) of this rule, the Commission shall
approve an application for any license that meets all requirements imposed by
article 30 of title 44, C.R.S., and the rules and regulations thereunder, including
payment of all fees and costs.
(2)
The Director may issue temporary or permanent key employee and support
licenses required by this Rule 3, without necessity for Commission approval, to
qualified applicants upon submission to the Director of proper applications, costs,
and fees.
3.15 Transferability of licenses.
by
article 30 of title 44, C.R.S., and the rules and regulations thereunder, including
payment of all fees and costs.
(2)
The Director may issue temporary or permanent key employee and support
licenses required by this Rule 3, without necessity for Commission approval, to
qualified applicants upon submission to the Director of proper applications, costs,
and fees.
3.15 Transferability of licenses.
(1)
A license issued pursuant to these rules may not be transferred without prior
approval by the Commission. The Commission reserves the right to terminate
any license and revoke the privileges of such license whenever appropriate.
3.16 Temporary closure of sports betting operation.
A sports betting operator may have its designated physical location closed temporarily if
the closure relates to a temporary closure of a retail licensed premise approved by the
Commission in accordance with Gaming Rule 3, 1 C.C.R. 207-1. The duration of the
closure will be set by the Commission based on the circumstances, information
provided by the retailer and information provided by the Division.
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BASIS AND PURPOSE FOR RULE 4
The purpose of Rule 4 is to collect sports betting taxes and other revenue in accordance
with section 44-30-1508, C.R.S., and 44-30-1509, C.R.S., to provide for security for the
payment of sports betting taxes to the Department, and to provide for the payment of
sports betting taxes by electronic funds transfer and allow monthly sports betting tax
returns to be electronically transmitted. The statutory basis and purpose for Rule 4 is
found in sections 44-30-201, C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-302,
C.R.S., 44-30-602, C.R.S., 44-30-604, C.R.S., 44-30-1508, C.R.S., and 44-30-1509,
C.R.S.
RULE 4
TAXES AND FEES Effective 4/14/20
4.1
Payment of taxes.
ng taxes by electronic funds transfer and allow monthly sports betting tax
returns to be electronically transmitted. The statutory basis and purpose for Rule 4 is
found in sections 44-30-201, C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-302,
C.R.S., 44-30-602, C.R.S., 44-30-604, C.R.S., 44-30-1508, C.R.S., and 44-30-1509,
C.R.S.
RULE 4
TAXES AND FEES Effective 4/14/20
4.1
Payment of taxes.
(1)
Payment of sports betting taxes by the Sports Betting Operation, at the statutorily
set rate of ten percent of net sports betting proceeds, shall be made to the
Department by an electronic funds transfer or by any other method permitted in
articles 20, 21, and 26 of title 39, C.R.S. Electronic funds transfer is defined to be
Automated Clearing House (ACH) debit. Any electronic funds transfer shall be
made using ACH debit transaction in the Cash Concentration or Disbursement
(CCD) entry format with addendum record as defined by the 1994 ACH Rules
published by the National Automated Clearing House Association. The data
contained in the addendum record shall be in the format of the tax payment
(TXP) banking convention published by the National Automated Clearing House
Association in 1990. (The references to the rules and conventions of the National
Automated Clearing House Association in this regulation do not include later
amendments or editions of this referenced material. Certified copies of these
rules and conventions are on file at the Department of Revenue and may be
obtained or examined by contacting the manager of Deposit Control, 1375
Sherman Street, Denver, Colorado 80261.)
he references to the rules and conventions of the National
Automated Clearing House Association in this regulation do not include later
amendments or editions of this referenced material. Certified copies of these
rules and conventions are on file at the Department of Revenue and may be
obtained or examined by contacting the manager of Deposit Control, 1375
Sherman Street, Denver, Colorado 80261.)
(2)
The payment for sports betting taxes shall be made by the person required to
make tax payments pursuant to Rule 7.8(2) who must remit sports betting taxes
separately and apart from any other taxes which are paid to the Department. In
addition to the payment, the Sports Betting Operation shall electronically transmit
to the Department a tax return in the format provided by the Department. The
return and payment shall be made no later than the 15th day of the month
succeeding the calendar month in which the net sports betting proceeds were
received by the licensee or the due date if later in accordance with section 39-21-
119(3), C.R.S. (1994). All monthly sports betting tax returns beginning with the
return for May 2020 taxes shall be transmitted electronically.
(a)
Payment is timely if the payment settles to the Department’s bank account
by the 16th day of the month succeeding the calendar month in which the
net sports betting proceeds were received by the licensee or the due date
if later in accordance with Section 39-21-119(3), C.R.S.
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(b)
The electronic tax return shall provide a computation of the monthly tax
due based on the sports betting tax rate of 10% of net sports betting
proceeds.
onth succeeding the calendar month in which the
net sports betting proceeds were received by the licensee or the due date
if later in accordance with Section 39-21-119(3), C.R.S.
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(b)
The electronic tax return shall provide a computation of the monthly tax
due based on the sports betting tax rate of 10% of net sports betting
proceeds.
(c)
The department shall notify the master licensee within seven days if a
Sports Betting Operator or internet Sports Betting Operator, operating
under that master license, fails to make any timely payment of sports
betting taxes.
(3)
Upon a licensee’s request, the Director may grant an extension up of not more
than five (5) days for filing a return and payment, except that the Director shall
not grant more than two extensions during any one-year period.
4.2
Hold Harmless Fund applications.
(1)
Claimants eligible pursuant to section 44-30-1509(2)(c)(i)(A)-(E), C.R.S., who
wish to apply for available payments from the Wagering Revenue Recipients
Hold-Harmless Fund (“Hold-Harmless Fund”) shall submit the Hold-Harmless
Fund Application Form found on the Division of Gaming website, in addition to all
supporting documents required by this rule and any additional documents, as
requested by the Commission or Division, necessary for review of the claim.
(2)
Completed applications shall be due within thirty (30) days following the annual
distributions, by the Commission, from the limited gaming fund, beginning 2021.
THE COMMISSION SHALL MAKE ANY DISTRIBUTIONS BASED ON THESE APPLICATIONS ON
OR BEFORE DECEMBER 31 OF THAT SAME YEAR.
(3)
In determining the validity of Hold Harmless Fund applications, the Commission
shall consider, at a minimum, the following factors:
(a)
Total amount of damages claimed;
(b)
Profit and Loss statements of claimants;
(c)
Factors other than sports betting that may have contributed to loss; and
SION SHALL MAKE ANY DISTRIBUTIONS BASED ON THESE APPLICATIONS ON
OR BEFORE DECEMBER 31 OF THAT SAME YEAR.
(3)
In determining the validity of Hold Harmless Fund applications, the Commission
shall consider, at a minimum, the following factors:
(a)
Total amount of damages claimed;
(b)
Profit and Loss statements of claimants;
(c)
Factors other than sports betting that may have contributed to loss; and
(d)
Whether the claimant is eligible to receive or receives funding for such
purposes from other sources and the total amount of funds received, if
any.
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BASIS AND PURPOSE FOR RULE 5
The purpose of Rule 5 is to establish the types of sports betting activities to be
conducted by sports betting licensees, including to establish and provide the specific
information required to request the authorization of new sports events; to establish the
prohibited sports events; to establish the sports events previously authorized; and to
establish procedures and fee requirements for sports betting licensees to offer betting
on sports events. The statutory basis for Rule 5 is found in sections 44-30-201, C.R.S.,
44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-302, C.R.S., and part 15 of article 30 of
title 44, C.R.S.
RULE 5
AUTHORIZED SPORTS BETTING ACTIVITIES Effective 4/14/20
5.1
Approved sports events and leagues.
(1)
Persons licensed to offer sports betting may accept wagers on those sports
events and leagues approved by the Commission, which shall be reflected on the
Official Sports Betting Catalog of Events and Wagers.
(2)
Where a sports league is authorized, persons licensed to offer sports betting may
accept wagers on all sports events conducted by such sports league, where the
sports event is of the kind generally conducted by that league.
tting may accept wagers on those sports
events and leagues approved by the Commission, which shall be reflected on the
Official Sports Betting Catalog of Events and Wagers.
(2)
Where a sports league is authorized, persons licensed to offer sports betting may
accept wagers on all sports events conducted by such sports league, where the
sports event is of the kind generally conducted by that league.
(3)
The Director or designee shall post the Official Sports Betting Catalog of Events
and Wagers on the Division website. As new events and/or leagues are
authorized, the Director or designee shall update the Official Sports Betting
Catalog of Events and Wagers, and inform the Master, Sports Betting Operator
and Internet Sports Betting Operator licensees and applicable sports governing
bodies of those changes. Unless otherwise stated by these Rules, all approved
sports events or wagers may be offered by all Sports Betting Operators.
5.2
Requests to authorize new Sports Events.
(1)
Sports betting licensees may request that the Division, through the authority
delegated by the Commission, authorize sports events, leagues or bets not
already authorized and included on the Official Sports Betting Catalog of Events
and Wagers. The request must be approved prior to any licensee offering the
new event or wager to the public. Requests made less than three (3) business
days before a new even for which the request is made may be denied at the
Division’s discretion.
(2)
The request shall be in a form as specified by the Division, including:
(a)
The name of the sports governing body; and
s Betting Catalog of Events
and Wagers. The request must be approved prior to any licensee offering the
new event or wager to the public. Requests made less than three (3) business
days before a new even for which the request is made may be denied at the
Division’s discretion.
(2)
The request shall be in a form as specified by the Division, including:
(a)
The name of the sports governing body; and
(b)
A description of its policies and procedures regarding event integrity.
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(3)
Where a sports betting licensee wishes to authorize a sports event conducted by
an approved sports league of a type not generally conducted by that sports
league, the Division may contact the sport’s governing body for input.
(4)
The Director or Director’s designee will consider the request, all provided
materials and any relevant input from the sport’s governing body or conductor of
the sports event prior to authorizing a sports event, league or portion of a sport or
athletic event. The wager being requested must meet the following criteria before
the request may be approved:
(a)
The outcome is not determined solely by chance;
(b)
The outcome can be verified;
(c)
The event generating the outcome is conducted in a manner that ensures
sufficient integrity controls exist so the outcome can be trusted;
(d)
The outcome is not affected by any bet placed; and
(e)
The event is conducted in conformity with all applicable laws.
5.3
High School sports events.
(1)
Betting on high school sports and equivalent level club or specialty sports events
is prohibited and shall not be authorized.
5.4
Fixed Odds or Price on Horse Wagering.
(1)
For the purposes of this Rule 5.4 only:
(a)
“The governing body” means the racing commission, governmental or
other organization that is entrusted with the regulatory duty to ensure
integrity of the outcome, from the racetrack where the race is contested.
s and equivalent level club or specialty sports events
is prohibited and shall not be authorized.
5.4
Fixed Odds or Price on Horse Wagering.
(1)
For the purposes of this Rule 5.4 only:
(a)
“The governing body” means the racing commission, governmental or
other organization that is entrusted with the regulatory duty to ensure
integrity of the outcome, from the racetrack where the race is contested.
(b)
“The owner” means the owner(s) of the animal in the contest.
(2)
Sports betting licensees may request, under specific conditions, that the
Commission authorize Horse Racing as sports events and bets. Any approval of
Horse Racing as sports events and bets will be specific to the sports betting
licensee requesting the event or bet.
(3)
On the application for Horse Racing as sports events and bets, sports betting
licensees must affirm the licensees have received consent from the following
parties:
(a)
To offer in-state horse racing events as a sports event, sports betting
licensees must affirm on the application that the licensee has received
consent from the following parties:
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(i)
The Colorado Racing Commission;
(ii)
The racetrack where the race is conducted; and
(iii)
The association that represents the horse persons competing at all
licensed class B Colorado horse track(s). This consent may be a
part of the consent provided by the consent received in 5.4(3)(a)(ii).
(b)
To offer horse racing events that occur outside the state of Colorado, but
inside the United States, as a sports event, sports betting licensees must
affirm the licensees have received consent from the following parties:
(i)
The host racing commission, or if applicable Breed Specific Racing
Commission, in the state where the race is conducted;
(ii)
The Colorado Racing Commission;
(iii)
All licensed class B Colorado horse track(s);
(iv)
The racetrack where the race is conducted; and
United States, as a sports event, sports betting licensees must
affirm the licensees have received consent from the following parties:
(i)
The host racing commission, or if applicable Breed Specific Racing
Commission, in the state where the race is conducted;
(ii)
The Colorado Racing Commission;
(iii)
All licensed class B Colorado horse track(s);
(iv)
The racetrack where the race is conducted; and
(v)
The association that represents the horse persons competing at the
racetrack where the race is conducted. This consent may be a part
of the consent provided by the consent received in 5.4(3)(b)(iv).
(vi)
For horse racing events, operators must also obtain the consent of
the association that represents the horse persons competing at all
licensed class B Colorado horse track(s). This consent may be a
part of the consent provided by the consent received in
5.4(3)(b)(iii).
(c)
To offer horse racing events that occur outside of the United States as a
sports event, sports betting licensees must affirm the licensees have
received consent from the following parties:
(i)
The Colorado Racing Commission;
(ii)
All licensed class B Colorado horse track(s);
(iii)
The racetrack where the race is conducted; and
(iv)
For horse racing events, the association that represents the horse
persons competing at all licensed class B Colorado horse track(s).
This consent may be a part of the consent provided by the consent
received in 5.4(3)(c)(ii).
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(4)
To offer an Esport contest that is based on the sport of racing horses, and has
been approved by the Director, sports betting licensees must affirm the licensees
have received consent from the following parties:
(a)
All licensed class B Colorado horse track(s);
art of the consent provided by the consent
received in 5.4(3)(c)(ii).
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(4)
To offer an Esport contest that is based on the sport of racing horses, and has
been approved by the Director, sports betting licensees must affirm the licensees
have received consent from the following parties:
(a)
All licensed class B Colorado horse track(s);
(b)
For horse racing events, the association that represents the horse persons
competing at all licensed class B Colorado horse track(s). This consent
may be a part of the consent provided by the consent received in
5.4(4)(a).
(5)
Licensees must submit the application at least 72 hours prior to any new
scheduled event requested. It shall be the responsibility of the operator
requesting the event to obtain all the consents provided for in these rules.
(6)
The application shall be in a form as specified by the Division, including:
(a)
The name of the horse meet, sport event(s) or race;
(b)
Host track;
(c)
A description of its policies and procedures regarding event integrity; and
(d)
Whether the outcome can be verified.
(7)
The Director or Director’s designee will consider the following factors prior to
determining whether to authorize Horse Racing as sports events:
(a)
Whether all required consents have been submitted;
(b)
Whether the outcome is determined solely by chance;
(c)
Whether the outcome can be verified;
(d)
Whether the event generating the outcome is conducted in a manner that
ensures sufficient integrity controls exist so the outcome can be trusted;
(e)
That the outcome is not affected by any bet placed; and
thorize Horse Racing as sports events:
(a)
Whether all required consents have been submitted;
(b)
Whether the outcome is determined solely by chance;
(c)
Whether the outcome can be verified;
(d)
Whether the event generating the outcome is conducted in a manner that
ensures sufficient integrity controls exist so the outcome can be trusted;
(e)
That the outcome is not affected by any bet placed; and
(f)
Whether the event is conducted in conformity with all applicable laws.
(8)
The Commission has a duty to promulgate rules to ensure that activities related
to fixed odds racing are conducted honestly and competitively. Where the
holding, intermediary, or subsidiary company of a sports betting operator, internet
sports betting operator, or master licensee is the holding, intermediary, or
subsidiary company of the host-track, the sports betting licensee must provide
documentation of the following conditions with the application for the racing
sports event:
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(a)
That the consent given by the host-track to the sports betting licensee
must be given to all licensed Sports Betting operations in Colorado;
(b)
That prior to commencing wagering on those events, any other consents
given to the sports betting licensee related to the racing sport event, as
required by Rule 5.4(3), be given to all licensed Sports Betting operations
in Colorado; and
(c)
That the host-track shall make available to all licensed Sports Betting
operations in Colorado, that racing sport event, race or content on the
usual and customary terms, including price or commission, should they
also wish to contract for that racing sport event, race or content.
acing sport event, as
required by Rule 5.4(3), be given to all licensed Sports Betting operations
in Colorado; and
(c)
That the host-track shall make available to all licensed Sports Betting
operations in Colorado, that racing sport event, race or content on the
usual and customary terms, including price or commission, should they
also wish to contract for that racing sport event, race or content.
(9)
A Content Provider that holds a sports betting license, has exclusive rights to
racing content, and, is not connected to a licensed Sports Betting operator,
Internet Sports Betting Operator or Master License, shall make available to all
licensed Sports Betting operations in Colorado, that racing content on the usual
and customary terms, including price, commission or discounts. A Content
Provider may secure the consents required in this 5.4 (3) for a contracted Sports
Betting Operator. Additionally, where more than one licensed Content Provider is
operating in the state, those operators shall use their best efforts working
together to provide the best content experience to the Colorado Sports bettor.
(10)
Payment on winning bets shall be made based on the order of finish posted and
declared “official” unless otherwise stated in the house rules of the Sports Betting
operation.
(11)
The Director or Director’s designee may request the consent of the Colorado
Racing Commission in advance for the conduct of sports betting on Horse
Racing as sports events and bets, for all sports betting operations, to fulfill the
requirements of the consent needed in 5.4(3).
(12)
Nothing in these rules shall usurp on the authority of the Colorado Racing
Commission and its regulation and conduct of Pari-Mutual Racing and wagering
in Colorado.
the consent of the Colorado
Racing Commission in advance for the conduct of sports betting on Horse
Racing as sports events and bets, for all sports betting operations, to fulfill the
requirements of the consent needed in 5.4(3).
(12)
Nothing in these rules shall usurp on the authority of the Colorado Racing
Commission and its regulation and conduct of Pari-Mutual Racing and wagering
in Colorado.
(13)
This Rule 5.4 will expire twenty-four (24) months from the approval date of this
Rule 5.4, unless otherwise repealed or extended by the Limited Gaming Control
Commission prior to the expiration date. Any hearing, investigation, accusation,
or other matter initiated by or pending before the Commission or the division of
gaming prior to the expiration date will continue until completion of such matter
including any associated administrative proceedings. Any and all authorizations
for sports events that are authorized pursuant to this Rule 5.4 are voided as of
the expiration date, twenty-four (24) months from the approval date of this Rule
5.4, unless otherwise repealed or extended by the Commission prior to the
expiration date.
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BASIS AND PURPOSE FOR RULE 6
The purpose of Rule 6 is to specify the rights, responsibilities, and duties of licensees;
specify certain duties of licensees related to permitting access to the Division of
information, records, and premises controlled by the licensee, require licensees to
maintain sufficient financial reserves, require that certain information be publicly posted,
direct the licensee to prohibit certain conduct, and establish procedures for patron
disputes, dissolution of corporations, transfers of interests and terminations of licensee
employment or licensure. The statutory basis for Rule 6 is found in sections 44-30-201,
C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-204, C.R.S., 44-30-302, C.R.S.,
44-30-510, C.R.S., 44-30-528, C.R.S., 44-30-833, C.R.S. and part 15 of article 30 of
title 44, C.R.S
and establish procedures for patron
disputes, dissolution of corporations, transfers of interests and terminations of licensee
employment or licensure. The statutory basis for Rule 6 is found in sections 44-30-201,
C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-204, C.R.S., 44-30-302, C.R.S.,
44-30-510, C.R.S., 44-30-528, C.R.S., 44-30-833, C.R.S. and part 15 of article 30 of
title 44, C.R.S.
RULE 6
RIGHTS AND DUTIES OF LICENSEES Effective 4/14/20
6.1
Responsibility of licensee.
Responsibility for the employment and maintenance of lawful methods of operation
rests with the licensee, and willful or persistent use or toleration of methods of operation
considered unlawful by the Commission is prohibited. Each licensee shall fully and
timely perform each and every term, condition and duty required by the statutes and
Rules and Regulations of the Commission.
6.2
Discovery of violations.
Each licensee must immediately notify the Division of the discovery of a violation or of a
suspected violation of article 30 of title 44, C.R.S., or the Rules and Regulations
promulgated thereunder, or any other criminal violation occurring at a Sports Betting
Operation.
6.3
Information to be furnished by licensee.
(1)
Reports and notices to the Division required by the Colorado Limited Gaming
Act, or by the Rules and Regulations promulgated thereunder, must be made in
writing, and must be submitted to the Division's main office in Golden, Colorado.
(a)
If any section of the Act or of the Colorado Sports Betting Regulations
requires that a report or notice be made in a different manner, then the
specified manner shall be used.
ices to the Division required by the Colorado Limited Gaming
Act, or by the Rules and Regulations promulgated thereunder, must be made in
writing, and must be submitted to the Division's main office in Golden, Colorado.
(a)
If any section of the Act or of the Colorado Sports Betting Regulations
requires that a report or notice be made in a different manner, then the
specified manner shall be used.
(b)
Delivery of notice may be made by United States mail, by personal or
commercial delivery to the office, by facsimile transmission, or by
electronic mail. Facsimile transmissions shall be made to the telephone
number provided by the Division. Electronic mail transmissions shall be
directed to the electronic mail address provided by the Division, or when
available, by use of forms submitted from the Division's internet website.
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(2)
Each Master, Sports Betting Operator, Internet Sports Betting Operator and/or
Vendor Major licensee must report to the Division annually, the full name and
address of every person, including lending agencies, who has a right to share in
sports betting revenues, whether as an owner, assignee, landlord, or otherwise
or to whom any interest or share in the profits of sports betting has been pledged
or hypothecated as security for a debt or deposited as a security for the
performance of an act or to secure the performance of a contract of sale.
(3)
Each Master, Sports Betting Operator, Internet Sports Betting Operator and/or
Vendor Major licensee must immediately report to the Division the name, date of
birth, and social security number of all persons who obtain an ownership,
financial, or equity interest in the licensee of ten percent or greater, or who have
the ability to control the licensee, or who have the ability to exercise significant
influence over the licensee, or who is a lender from which the licensee currently
has an outstanding loan.
ediately report to the Division the name, date of
birth, and social security number of all persons who obtain an ownership,
financial, or equity interest in the licensee of ten percent or greater, or who have
the ability to control the licensee, or who have the ability to exercise significant
influence over the licensee, or who is a lender from which the licensee currently
has an outstanding loan.
(4)
Any person licensed by the Commission, and any associated person to a
licensee, must make written notification to the Division of any criminal conviction
and criminal charge pending against such person within ten days of such
person's arrest, summons, charge or conviction. This notification requirement
shall not apply to non-felony traffic violations unless they result in the person
being taken into custody. Failure to make proper notification to the Division may
be grounds for a disciplinary action.
6.4
Inspections.
A Master, Sports Betting Operator, Internet Sports Betting Operator and Vendor Major
licensee must immediately make available for inspection by the Commission, Director,
or its agents or investigators, local sheriffs, or their agents or investigators, and police
departments upon demand, all papers, books, and records produced, used or kept in
connection with sports betting, and all portions of the premises where sports betting is
conducted or where a sports betting system is housed. Upon demand, employees and
agents of the Commission and Division, must be given immediate access to any portion
of the premises of a Master, Sports Betting Operator, Internet Sports Betting Operator
and Vendor Major licensee for the purpose of inspecting or examining records or
documents, sports betting systems, or the conduct of sports betting activity.
6.5
Access to premises and production of records.
No applicant or licensee, or applicant or licensee's employee or agent may neglect or
refuse to produce records or evidence or to give information on lawful demand by the
Commission or the Division
endor Major licensee for the purpose of inspecting or examining records or
documents, sports betting systems, or the conduct of sports betting activity.
6.5
Access to premises and production of records.
No applicant or licensee, or applicant or licensee's employee or agent may neglect or
refuse to produce records or evidence or to give information on lawful demand by the
Commission or the Division. No applicant or licensee shall interfere or attempt to
interfere with lawful efforts by the Commission or Division to obtain or produce such
information.
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6.6
Employee on premises.
When a Sports Betting Operator or Master Licensee is open for play by the public, there
must be a Key Employee of either the Sports Betting Operator or Master Licensee
present on the premises to supervise the operation of the Sports Betting Operation.
6.7
Support and key licensee identification.
Every person licensed as a support or key employee licensee must wear in plain view
identification issued by the Commission, Division or Licensee. This section shall not
apply to employees engaged in undercover security operations for the licensee, except
that all licensees must have their license identification badges in their possession while
working and must present them to Division employees upon demand.
6.8
Display of license.
All persons licensed as a Master, Sports Betting Operator, or Internet Sports Betting
Operator must display their licenses, in a manner plainly visible to the public, on the
premises or Internet Sports Betting Operations office.
6.9
Payment of winners - reserves.
All persons licensed as a Master, Sports Betting Operator, or Internet Sports Betting
Operator shall at all times have available sufficient financial reserves to pay those
sports bets accepted, calculated, and settled by that Sports Betting Operation
licenses, in a manner plainly visible to the public, on the
premises or Internet Sports Betting Operations office.
6.9
Payment of winners - reserves.
All persons licensed as a Master, Sports Betting Operator, or Internet Sports Betting
Operator shall at all times have available sufficient financial reserves to pay those
sports bets accepted, calculated, and settled by that Sports Betting Operation. A
reserve in the form of cash or cash equivalents segregated from operational funds, an
irrevocable letter of credit, payment processor reserves and receivables, or a
combination thereof, shall be maintained in the amount necessary to cover the
outstanding sports betting liability. The outstanding sports wagering liability shall be the
sum of the following amounts: amounts held by a Master Licensee, Sports Betting
Operator Licensee, or Internet Sports Betting Operator Licensee for player accounts;
aggregate amounts accepted by a Master Licensee, Sports Betting Operator Licensee,
or Internet Sports Betting Operator Licensee as wagers on sports events whose
outcomes have not been determined; and amounts owed but unpaid by a Master
Licensee, Sports Betting Operator Licensee, or Internet Sports Betting Operator
Licensee on winning wagers through the period established by a Master Licensee,
Sports Betting Operator Licensee, or Internet Sports Betting Operator Licensee for
honoring winning wagers. An accounting of this reserve shall be made available for
inspection to the Division upon request. The method of reserve shall be submitted to
and approved by the Director or the Director’s designee prior to implementation
n winning wagers through the period established by a Master Licensee,
Sports Betting Operator Licensee, or Internet Sports Betting Operator Licensee for
honoring winning wagers. An accounting of this reserve shall be made available for
inspection to the Division upon request. The method of reserve shall be submitted to
and approved by the Director or the Director’s designee prior to implementation.
Payment must be made to winners and participants by crediting their internet betting
account, cash, or by check drawn upon a bank, or other financial institution, chartered
by the State of Colorado or any other state or the United States Government, or by
bond approved by the Director or the Director’s designee, within 24 hours of any bona-
fide demand by a winner or participant for payment, or within a reasonable time frame
as approved if by bond. Any check issued by a Master, Sports Betting Operator, or
check or account credit paid by an Internet Sports Betting Operator to any winner of a
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sports betting activity must, at the time of issuance and until cashed or six months has
expired (whichever is earlier), be backed by and drawn upon sufficient funds to cover
the full amount of the check or account credit issued by a Master, Sports Betting
Operator, and/or Internet Sports Betting Operator.
6.10 House rules.
Master or Sports Betting Operator licensees and an Internet Sports Betting Operator
shall adopt comprehensive house rules. Master or Sports Betting Operator licensees
must post prominently and have available for inspection their house rules on the
licensed premises. An Internet Sports Betting Operator must post prominently and have
available on their internet site and mobile applications its house rules. Initial house rules
shall be approved by the Director or the Director’s designee that include, at a minimum,
the following:
(1)
Method for calculation and payment of winning wagers;
(2)
Effect of schedule changes;
n their house rules on the
licensed premises. An Internet Sports Betting Operator must post prominently and have
available on their internet site and mobile applications its house rules. Initial house rules
shall be approved by the Director or the Director’s designee that include, at a minimum,
the following:
(1)
Method for calculation and payment of winning wagers;
(2)
Effect of schedule changes;
(3)
Method of notifying patrons of odds or proposition changes;
(4)
Acceptance of wagers at other than posted terms;
(5)
Expiration of any winning ticket one year after the date of the event;
(6)
Lost ticket policy;
(7)
Method of contacting the Sports Betting Operator for questions and complaints;
(8)
Description of prohibited sports betting participants;
(9)
Method of funding a sports wager;
(10)
Instructions on how to redeem a winning bet by mail, if the Sports Betting
Operator allows patrons to do so;
(11)
Maximum payouts; however, such limits shall only be established through limiting
the amount wagered and cannot be applied to reduce a winning wager amount;
and
(12)
A policy by which the Sports Betting Operator can cancel or void wagers in
accordance with these rules, including defining “obvious error.”
(a)
The house rules, together with any other information the Director deems
appropriate, shall be conspicuously displayed in the sports betting
wagering area, posted on the Operator’s internet website, and included in
the terms and conditions of the sports betting account and copies shall be
made readily available to patrons.
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error.”
(a)
The house rules, together with any other information the Director deems
appropriate, shall be conspicuously displayed in the sports betting
wagering area, posted on the Operator’s internet website, and included in
the terms and conditions of the sports betting account and copies shall be
made readily available to patrons.
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(b)
Amendments to the house rules must be filed with the Division highlighting
the amendment(s). The Director or the Director’s designee may at any
time request additional explanation or modification of the changes.
(13)
A clear statement that the person who accepts and settles a wager is responsible
for receiving and addressing any patron disputes.
6.11 Prohibited sports betting participant.
(1)
A prohibited sports betting participant must refrain from engaging in sports
betting in the state of Colorado on the prohibited sports events and/or on the
prohibited Sports Betting Operation platform(s).
(2)
A prohibited sports betting participant must disclose his or her status as a
prohibited sports betting participant to all relevant persons and/or governing
bodies. Failure to comply with the provisions of this rule may result in disciplinary
action up to and including criminal prosecution.
(3)
A Sports Betting Operation shall make commercially reasonable efforts to
confirm that the patron is not a prohibited sports betting participant.
(4)
A sports wagering ticket may be received as a tip wager by an employee of a
sports betting operator or master license so long as the receiver of tip wager did
not solicit the sports wagering ticket, the receiver did not participate in the
selection of the wager and the sports betting ticket is placed into a tip pool.
6.12 Advertising.
No licensee shall allow, conduct, or participate in any false or misleading advertising
concerning its Sports Betting Operations.
6.13 Wager Settlement.
g operator or master license so long as the receiver of tip wager did
not solicit the sports wagering ticket, the receiver did not participate in the
selection of the wager and the sports betting ticket is placed into a tip pool.
6.12 Advertising.
No licensee shall allow, conduct, or participate in any false or misleading advertising
concerning its Sports Betting Operations.
6.13 Wager Settlement.
(1)
It is the responsibility of all Sports Betting Operations to attempt to resolve all
valid wager settlement disputes directly with the patron. A wager settlement
dispute is valid when a patron submits a written wager settlement dispute to the
Sports Betting Operation via mail or electronic mail to the appropriate customer
service address and when a winning wager was:
(a)
Settled as a losing wager;
(b)
Settled as a winning wager but the payout was incorrect;
(c)
Voided by the Sports Betting Operation prior to settlement; or
(d)
Settled but the Sports Betting Operation has not paid out the winnings.
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(2)
A Sports Betting Operation may resolve any verbal wager settlement dispute as
a customer service complaint. Verbal wager settlement disputes not resolved in
the first contact must be submitted by the patron as a valid wager settlement
dispute.
(3)
Upon receipt of a valid wager settlement dispute, the Sports Betting Operation
must investigate and provide the patron with a written response within ten (10)
business days. The response must state the Sports Betting Operation’s decision
regarding whether or not it will pay out on the wager.
(4)
If the Sports Betting Operation determines it will not pay out on the wager, the
response must provide an explanation stating minimum facts and any other
relevant information supporting the decision, as well as a statement informing the
patron of their right to appeal the decision when the amount in dispute is at least
$1,250.
n’s decision
regarding whether or not it will pay out on the wager.
(4)
If the Sports Betting Operation determines it will not pay out on the wager, the
response must provide an explanation stating minimum facts and any other
relevant information supporting the decision, as well as a statement informing the
patron of their right to appeal the decision when the amount in dispute is at least
$1,250.
(5)
It is the responsibility of all Sports Betting Operations to log all valid wager
settlement disputes it receives. The log must document the: date the written
wager settlement dispute was received; patron name; patron account number;
wager description; amount wagered; purported payoff; and the Sports Betting
Operation’s action taken. This record should be kept by year and must be kept
for a minimum of twelve (12) months.
(6)
If the Sports Betting Operation declines to pay a wager settlement dispute with a
patron involving at least $1250, the aggrieved patron may submit the initial wager
settlement dispute and the Sports Betting Operation’s response to the Division
for further review. The dispute must be submitted in the form and manner as
prescribed by the Division’s website. Submissions not constituting a valid wager
settlement dispute or reaching the minimum threshold amount will be treated as
regulatory complaints.
(7)
Upon receipt of a qualifying submission, the Division will investigate the matter
and the Director or the Director’s designee will determine whether the wager
should be paid. The patron and the Sports Betting Operation will be notified
within ten (10) days of the completion of the investigation of the decision and the
Director will issue an order on the matter. If the wager should be paid, the Sports
Betting Operation must contact the patron within ten (10) business days of the
order being issued to tender the funds.
6.14 Closing of a Sports Betting Operation; Dissolution.
(1)
Closing of a Sports Betting Operation.
l be notified
within ten (10) days of the completion of the investigation of the decision and the
Director will issue an order on the matter. If the wager should be paid, the Sports
Betting Operation must contact the patron within ten (10) business days of the
order being issued to tender the funds.
6.14 Closing of a Sports Betting Operation; Dissolution.
(1)
Closing of a Sports Betting Operation.
(a)
A Sports Betting Operation must notify the Division of any temporary or
permanent closing plans at least sixty (60) days prior to closing the Sports
Betting Operation or as soon as the Operation knows that closing is
imminent, whichever period is shorter.
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(b)
Within thirty (30) days of notice to the Division, the Sports Betting
Operation must provide the Division with a closing plan regarding the
disposition of outstanding tickets and futures wagers.
(2)
Closing of an Internet Sports Betting Operation.
(a)
An Internet Sports Betting Operation must notify the Division of any
permanent cessation of operation number at least sixty (60) days prior to
operations ceasing, or the change of ownership, or as soon as the
Operation knows that closing is imminent, whichever period is shorter.
(b)
Within 30 days of notice to the Division, the Internet Sports Betting
Operation must provide the Division with a closing plan regarding the
disposition of player accounts, funds in those accounts, and futures
wagers.
n number at least sixty (60) days prior to
operations ceasing, or the change of ownership, or as soon as the
Operation knows that closing is imminent, whichever period is shorter.
(b)
Within 30 days of notice to the Division, the Internet Sports Betting
Operation must provide the Division with a closing plan regarding the
disposition of player accounts, funds in those accounts, and futures
wagers.
(3)
Upon the dissolution of a Sports Betting Operation, or an Internet Sports Betting
Operation that is a corporation, partnership or association, the Operation shall
surrender the license within 10 days of the dissolution effective date.
6.15 Transfers of interest.
Except as provided in Colorado Limited Gaming Control Commission Rule 4.5, no
person may sell, lease, purchase, convey, or acquire an interest in a Master, Sports
Betting Operator, Internet Sports Betting Operator, or Vendor Major licensee, without
the prior approval of the Commission.
6.16 Termination of qualifying licensee, manager, or agent.
Upon the termination of a manager's or agent's affiliation with the licensee, the licensee
must name one or more new managers or agents, including temporary appointments
until a permanent appointment is made, and notify the Division within seven days.
6.17 Post-termination matters.
Upon termination of a Master, Sports Betting Operator, Internet Sports Betting Operator,
or Vendor Major license for any reason, no further sports betting activity shall be
conducted by said licensee or, or on the previously designated sports betting wagering
area . After such termination, at a date designated by the Director, said licensee shall
submit to the Division a final accounting and surrender the license.
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or Vendor Major license for any reason, no further sports betting activity shall be
conducted by said licensee or, or on the previously designated sports betting wagering
area . After such termination, at a date designated by the Director, said licensee shall
submit to the Division a final accounting and surrender the license.
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6.18 Restrictions on time, place, and structures.
Sports betting conducted pursuant to article 30 of title 44, C.R.S. and these Rules shall
be permitted 24 hours a day, three hundred and sixty-five days a year. During leap
years, this shall be three hundred and sixty-six days a year. Sports betting may only
take place within the sports betting wagering area of a Master License establishment or
online by an Internet Sports Betting licensee possessing a license to conduct such
sports betting activity. Online sports betting may take place in any location within the
state of Colorado via a licensed Internet Sports Betting Operator, unless an area is
deemed by the Commission or Division Director to be an area where betting may not
occur. Boundaries of an area so defined will be made available to Internet Sports
Betting Operators.
6.19 Sports Betting Wagering Area
(1)
Sports betting offered by a Master License or a Master License through a Sports
Betting Operator may only be conducted in approved locations within the
casino’s designated and approved area. The designated area may include:
(a)
All or part of the designated approved gaming area for limited gaming; or
will be made available to Internet Sports
Betting Operators.
6.19 Sports Betting Wagering Area
(1)
Sports betting offered by a Master License or a Master License through a Sports
Betting Operator may only be conducted in approved locations within the
casino’s designated and approved area. The designated area may include:
(a)
All or part of the designated approved gaming area for limited gaming; or
(b)
Other portions of the master licensee’s premises as approved;
(2)
The Designated area excludes areas authorized for support services pursuant to
section 44-30-1505(5)(c)
(3)
Any bet placed outside the designated area within a casino may only be
accepted by an Internet Sports Betting Operator.
6.20 Pools, shared liquidity pools, contests and weekly pick events.
(1)
Pool, shared liquidity pool, contest or weekly pick event, means a betting or
promotional offering where patrons may make selections of outcomes on a set
number of sports events on a card in order to enter for a chance to win all or a
portion of the prize pool.
(2)
Prior to offering a pool, contest or weekly pick event that will be made available
to patrons in Colorado, or a shared liquidity pool available to patrons in Colorado
and other jurisdictions, with the prize pool being comprised of entry fees collected
from patrons in multiple jurisdictions, a Sports Betting Operation must obtain
approval from the Director. The request must provide a detailed description of the
pool, shared liquidity pool, contest or weekly pick event, and must include the
rules, requirements for entry, the rake and winning pay out(s). Once a Sports
Betting Operation receives approval to offer a pool, shared liquidity pool, contest
or weekly pick event the Sports Betting Operation shall not be required to seek
additional approvals from the Director for each subsequent offering that is
substantially similar.
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, requirements for entry, the rake and winning pay out(s). Once a Sports
Betting Operation receives approval to offer a pool, shared liquidity pool, contest
or weekly pick event the Sports Betting Operation shall not be required to seek
additional approvals from the Director for each subsequent offering that is
substantially similar.
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(3)
The Sports Betting Operation shall be responsible for establishing the rake. The
Sports Betting Operation’s rake collected from patrons that enter a pool, shared
liquidity pool, contest or weekly pick while located in the State of Colorado, less
any rake adjustment, if applicable, shall be considered net sports betting
proceeds and are subject to all taxes and tax requirements outlined in Part 15 of
the Colorado Limited Gaming Act.
(4)
At no time shall the calculation resulting from a rake adjustment be negative.
(5)
The rake rate must be the same for all jurisdictions participating in a shared
liquidity pool available to patrons in Colorado and other jurisdictions.
(6)
Agents or proxies shall not be allowed in a betting offering. A pool, shared
liquidity pool, contest or weekly pick event that is offered for promotional or other
purpose that do not involve activity that can be characterized as gambling and/or
sports betting in violation of Colorado laws and Regulations must identify any
agent and/or proxy acting on behalf of any participant and the name of that
individual.
BASIS AND PURPOSE FOR RULE 7
The purpose of Rule 7 is to establish a Sports Betting Operations Fee to defray the cost
of regulating the sports betting industry, specify the requirements regarding the
certification, assessment and security of sports betting systems and kiosks, direct
Sports Betting Operations to establish internal control procedures, including accounting
controls, outline reporting requirements and the computation of taxes, establish
geofence and sports betting account requirements, and to outline procedures for
change control
ng industry, specify the requirements regarding the
certification, assessment and security of sports betting systems and kiosks, direct
Sports Betting Operations to establish internal control procedures, including accounting
controls, outline reporting requirements and the computation of taxes, establish
geofence and sports betting account requirements, and to outline procedures for
change control. The statutory basis for Rule 7 is found in sections 44-30-102, C.R.S.,
44-30-201, C.R.S., 44-30-202, C.R.S., 44-30-203, C.R.S., 44-30-302, C.R.S., 44-30-
503, C.R.S., 44-30-510, C.R.S., 44-30-528, C.R.S., 44-30-833, C.R.S., 44-30-1501,
C.R.S, and part 15 of article 30 of title 44, C.R.S.
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RULE 7
REQUIREMENTS OF SPORTS BETTING OPERATIONS Effective
4/14/20
7.1
Sports Betting Operations fee.
(1)
The Commission declares that, due to increased administrative and personnel
costs of regulating sports betting, outside any and all costs of the licensing
process already contemplated by the licensing fees, and to ensure that tax
revenue from net sports betting proceeds is directed to intended beneficiaries, an
annual fee, known as a Sports Betting Operations Fee, shall be established. The
Sports Betting Operations Fee is not a tax, but a fee designed to defray the cost
to the Commission and Division of providing the regulatory support services to
sports betting licensees as set out in section 44-30-1501, C.R.S., et seq., and as
reflected by the Commission and Division’s duties in Rules 6, 7, 8, and 9. By
collecting fees that fund the regulatory commitment of the Commission and
Division, the Commission may ensure tax collections are directed to the intended
beneficiaries.
(2)
The Commission shall set the Sports Betting Operations Fee before June 1st of
each fiscal year and shall review the amount of the fees annually.
as
reflected by the Commission and Division’s duties in Rules 6, 7, 8, and 9. By
collecting fees that fund the regulatory commitment of the Commission and
Division, the Commission may ensure tax collections are directed to the intended
beneficiaries.
(2)
The Commission shall set the Sports Betting Operations Fee before June 1st of
each fiscal year and shall review the amount of the fees annually.
(3)
In setting the Sports Betting Operations Fee, the Commission shall endeavor to
approximate the Commission and Division’s costs of providing regulatory
compliance services to sports betting licensees and shall consider at least the
following factors:
(a)
The projected budget for the upcoming fiscal year, presented to the
Commission by the Director no later than the regularly scheduled May
Commission meeting;
(b)
Projected number of Sports Betting Operators and Internet Sports Betting
Operators, and Master Licensees conducting sports betting or internet
sports betting themselves;
(c)
Projected percentages for all wagers taken online and in sports books
located in licensed casinos; and
(d)
Total Commission appropriation for operational expenses related to sports
betting, other than the Commission’s direct and indirect costs of
processing a licensee’s application and conducting background
investigations.
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(4)
On or before July 31st, except fiscal year 2020 shall be remitted before May 1st, of
each year, a Sports Betting Operator, Internet Sports Betting Operator, and
Master Licensee conducting sports betting or internet sports betting itself, shall
remit the required Sports Betting Operations Fee. Failure to comply with this
requirement may result in a fine, penalty, or revocation of license. Should a
licensee begin operations after the remittance date in that fiscal year the required
operational fee shall be submitted prior to commencing operations. In those
cases, the fee may be prorated by the Director
nternet sports betting itself, shall
remit the required Sports Betting Operations Fee. Failure to comply with this
requirement may result in a fine, penalty, or revocation of license. Should a
licensee begin operations after the remittance date in that fiscal year the required
operational fee shall be submitted prior to commencing operations. In those
cases, the fee may be prorated by the Director. Fees or partial fees shall not be
refunded if a licensee ceases operations.
7.2
System assessment.
(1)
Each Sports Betting Operation shall, within ninety (90) days of commencing
operations, and annually thereafter, perform a system integrity and security
assessment of sports betting systems and online sports betting systems
conducted by an independent professional selected by the licensee and subject
to licensure and approval of the Director or Director’s designee. Should a
licensee be operating under a temporary license, they shall perform a system
and security assessment within one year following the initial ninety (90) day
assessment. The independent professional’s report on the assessment shall be
submitted to the Division and shall include:
(a)
Scope of review;
(b)
Name and company affiliation of the individual(s) who conducted the
assessment;
(c)
Date of assessment;
(d)
Findings;
(e)
Recommended corrective action, if applicable; and
(f)
The operator’s response to the findings and recommended corrective
action.
ay
assessment. The independent professional’s report on the assessment shall be
submitted to the Division and shall include:
(a)
Scope of review;
(b)
Name and company affiliation of the individual(s) who conducted the
assessment;
(c)
Date of assessment;
(d)
Findings;
(e)
Recommended corrective action, if applicable; and
(f)
The operator’s response to the findings and recommended corrective
action.
(2)
If the independent professional’s report recommends corrective action, the
Sports Betting Operation must provide the Division with a resolution plan which
details the Sports Betting Operation’s actions and schedule to implement the
corrective action. Once the corrective action has been taken, the operator will
provide the Division with documentation evidencing completion.
7.3
Sports betting transactions.
To conduct sports betting retail transactions, a Sports Betting Operation shall submit a
plan to the Commission that meets the requirements, and shall be approved by the
Director or Director’s designee. Sports betting transactions shall be conducted from:
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(1)
A Counter located in the sports betting wagering area or other window locations
as approved by the Director or Director’s designee;
(2)
Sports betting kiosks in locations as approved by the Director or Director’s
designee; or
(3)
A designated window in the cashier’s cage for the redemption of winning sports
betting tickets, only if the counter in the sports betting wagering area is closed.
7.4
Security requirements.
(1)
Sports Betting Operations within a licensed facility shall be designed to promote
optimum security of the licensed facility, and shall include the installation and
maintenance of security and surveillance equipment, including closed circuit
television equipment, pursuant to the security requirements set forth in the limited
gaming ICMP and any other specifications approved by the Director or Director’s
designee.
Operations within a licensed facility shall be designed to promote
optimum security of the licensed facility, and shall include the installation and
maintenance of security and surveillance equipment, including closed circuit
television equipment, pursuant to the security requirements set forth in the limited
gaming ICMP and any other specifications approved by the Director or Director’s
designee.
(2)
The Commission shall have access to the primary server location in Colorado
and the information contained therein. All information necessary for the Division
to conduct any investigation shall be provided to the Division immediately upon
request.
(3)
A Sports Betting Operation shall submit a surveillance plan for approval by the
Director or Director’s designee prior to accepting wagers in any approved sports
betting area or approved sports betting kiosk locations in the licensed facility.
7.5
Internal control procedures.
Prior to beginning sports betting activity, a Sports Betting Operation must submit for
approval internal controls for the following:
(1)
In the event of a failure of the sports betting system’s ability to pay winning
wagers, the Sports Betting Operation shall have internal controls detailing the
method of paying winning wagers. The Sports Betting Operation shall also file an
incident report for each system failure and document the date, time, and reason
for the failure along with the date and time the system is restored with the
Division;
(2)
User access controls for all sports betting personnel;
(3)
Segregation of duties;
(4)
Automated and manual risk management procedures;
(5)
Procedures for identifying and reporting fraud and suspicious conduct, including
identifying unusual betting activity and reporting such activity to an Independent
Integrity Monitoring Provider;
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(6)
Procedures to prevent betting by prohibited sports betting participants;
uties;
(4)
Automated and manual risk management procedures;
(5)
Procedures for identifying and reporting fraud and suspicious conduct, including
identifying unusual betting activity and reporting such activity to an Independent
Integrity Monitoring Provider;
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(6)
Procedures to prevent betting by prohibited sports betting participants;
(7)
Procedures for Sports Betting Operation-imposed exclusion of patrons, including
the following:
(a)
Providing a notification containing operator-imposed exclusion status and
general instructions for resolution;
(b)
Ensuring that immediately upon executing the operator-imposed exclusion
order, no new wagers or deposits are accepted from the patron, until such
time as the operator-imposed exclusion has been revoked; and
(c)
Ensuring that the patron is not prevented from withdrawing any or all of
their account balance, provided that the Sports Betting Operation
acknowledges that the funds have cleared, and that the reason(s) for
exclusion would not prohibit a withdrawal.
(8)
Description of anti-money laundering compliance standards, which shall include
limitations placed on anonymous betting at the sports betting kiosks;
(9)
Process for submitting or receiving approval of all types of wagers available to be
offered by the system;
(10)
Description of process for accepting wagers and issuing pay outs, plus any
additional controls for accepting wagers and issuing pay outs in excess of
$10,000;
(11)
Description of a process for accepting multiple wagers from one patron in a
twenty-four (24) hour cycle, including a process to identify patron structuring of
wagers to circumvent recording and reporting requirements;
(12)
Detail the procedure for reconciliation of assets and documents contained in a
sports betting wagering area cashier’s drawer, sports betting kiosks, and online
sports betting, which shall include the drop and count procedures for sports
betting kiosks;
twenty-four (24) hour cycle, including a process to identify patron structuring of
wagers to circumvent recording and reporting requirements;
(12)
Detail the procedure for reconciliation of assets and documents contained in a
sports betting wagering area cashier’s drawer, sports betting kiosks, and online
sports betting, which shall include the drop and count procedures for sports
betting kiosks;
(13)
Procedures for cashing winning tickets at the cage after the sports betting
wagering area has closed, if applicable;
(14)
Procedures for accepting value game chips for sports wagers, if applicable;
(15)
Procedures for issuance and acceptance of promotional funds and free bets for
sports betting;
(16)
Description of all integrated third-party systems;
(17)
Identifying and restricting prohibited sports betting participants;
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(18)
Instituting a process to close out dormant accounts;
(19)
Detail procedures for making adjustments to a patron’s account, providing a
method for a patron to close out an account, and detail how a patron will be
refunded after the closure of an account;
(20)
If the sports betting system allows online betting, a method for verifying
geolocation systems to establish patrons’ geographic locations;
(21)
Maintaining the security of identity and financial information of patrons;
(22)
Detailed problem gambling program procedures;
(23)
Secure method for implementing an online and on location responsible gaming
and self-exclusion program, including what account limits may be set by patrons;
(24)
Method for securely issuing, modifying, and resetting a patron’s account
password, Personal Identification Number (PIN), biometric login, or other
approved security feature, when applicable;
(25)
Methods of patron notification including any password or security modification via
electronic or regular mail, text message, or other manner approved by the
Director or Director’s designee. Such methods shall include at a minimum:
g, modifying, and resetting a patron’s account
password, Personal Identification Number (PIN), biometric login, or other
approved security feature, when applicable;
(25)
Methods of patron notification including any password or security modification via
electronic or regular mail, text message, or other manner approved by the
Director or Director’s designee. Such methods shall include at a minimum:
(a)
Proof of identity, if in person;
(b)
The correct response to two or more challenge questions;
(c)
Strong authentication; or
(d)
Two factor authentication.
(26)
Procedures for receiving, investigating and responding to all patron complaints
and submitting any unresolved patron complaint reports to the Division;
(27)
Detail the location of the sports betting servers, including any third party remote
location servers, and what controls will be in place to ensure security of the
sports betting servers;
(28)
Terms and conditions for sports betting shall be included as an appendix;
(29)
Description of the process for line setting and line moving;
(30)
If allowed, method of redeeming lost tickets;
(31)
Method by which the Sports Betting Operation will identify and cancel wagers in
accordance with Rule 7.6 (12), including defining “obvious error”;
(32)
A process for voiding wagers.
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(33)
A process for implementing the change management process detailed in these
Rules; and
(34)
Any other internal control deemed necessary by the Director or the Director’s
designee.
ting Operation will identify and cancel wagers in
accordance with Rule 7.6 (12), including defining “obvious error”;
(32)
A process for voiding wagers.
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(33)
A process for implementing the change management process detailed in these
Rules; and
(34)
Any other internal control deemed necessary by the Director or the Director’s
designee.
(35)
Beginning on July 1, 2023, Sport Betting Operations need procedures that
ensure that all Sports Betting Operations follow the current IRS standards before
making sports betting payments and perform a gaming intercept as required for
all sports betting payments as outlined in the Limited Gaming Internal Control
Minimum Procedures Section 1 H.
The Sports Betting Operation shall stamp or otherwise mark each page of the internal
control procedures submitted to the Commission with the word “CONFIDENTIAL” if the
material submitted is not subject to disclosure under 44-30-1507, C.R.S., and this Rule
7.
7.6
Sport betting system requirements.
(1)
Certification testing.
(a)
Prior to conducting sports betting, the entire sports betting system used in
conjunction with the Sports Betting Operation shall be submitted to a
Colorado approved independent testing laboratory for certification testing.
(b)
A Colorado approved independent testing laboratory shall certify that the
sports betting system used in conjunction with the Sports Betting
Operation meets or exceeds the standards approved by the Commission,
and the standards established by this document. Sports Betting
Operations are prohibited from offering sports betting in Colorado without
such certification.
ry for certification testing.
(b)
A Colorado approved independent testing laboratory shall certify that the
sports betting system used in conjunction with the Sports Betting
Operation meets or exceeds the standards approved by the Commission,
and the standards established by this document. Sports Betting
Operations are prohibited from offering sports betting in Colorado without
such certification.
(c)
All wagers shall be initiated, received, and otherwise made within the
State of Colorado unless otherwise permitted by the Commission in
accordance with applicable federal and state laws. Consistent with the
intent of the United States Congress as articulated in the Unlawful Internet
Gambling Enforcement Act of 2006 (31 U.S.C. §§5361 et seq.), the
intermediate routing of electronic data relating to a lawful intrastate wager
authorized under this provision shall not determine the location or
locations in which such wager is initiated, received, or otherwise made.
(d)
A Sports Betting Operation shall document and maintain any system
malfunction or deviation from the sports betting system and maintain that
data for a minimum period of three (3) years.
(e)
A Sports Betting Operation shall provide the Director or Director’s
designee, with betting transactions and related data as deemed necessary
and in a manner approved by the Director or the Director’s designee.
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(2)
Server location.
(a)
A Sports Betting Operation must locate the primary server in the state of
Colorado. The primary server shall be the server responsible for the
acceptance and storage of patron wagers. The location selected must
have adequate security, including twenty-four (24) hour surveillance, and
be licensed and approved by the Director or Director’s designee.
(b)
Third party data storage facilities or data storage managers must obtain a
vendor minor license.
(3)
Cloud storage of duplicate data.
primary server shall be the server responsible for the
acceptance and storage of patron wagers. The location selected must
have adequate security, including twenty-four (24) hour surveillance, and
be licensed and approved by the Director or Director’s designee.
(b)
Third party data storage facilities or data storage managers must obtain a
vendor minor license.
(3)
Cloud storage of duplicate data.
(a)
The Director or Director’s designee may approve the use of cloud storage
for duplicate data, or data not related to transactional wagering data upon
written request by a Sports Betting Operation.
(4)
Sports betting system requirements; logging.
(a)
All online sports betting systems authorized by the Division and these
Rules shall be designed to ensure the integrity and confidentiality of all
patron communications and ensure the proper identification of the sender
and receiver of all communications. If communications are performed
across a public or third-party network, the system shall either encrypt the
data packets or utilize a secure communications protocol to ensure the
integrity and confidentiality of the transmission.
(b)
Sports betting systems shall employ a mechanism capable of maintaining
a separate copy of all of the information required to be logged in this
section on a separate and independent logging device capable of being
administered by an employee with no incompatible function. If the online
sports betting system can be configured such that any logged data is
contained in a secure transaction file, a separate logging device is not
required.
(c)
Sports betting systems shall provide promptly upon request, in a format
required by the Commission, all online sports betting system data. Sports
betting system data includes, but is not limited to, employee data and logs,
geofence logs, player activity and betting information, and event logs
related to Colorado Sports Betting Operations.
action file, a separate logging device is not
required.
(c)
Sports betting systems shall provide promptly upon request, in a format
required by the Commission, all online sports betting system data. Sports
betting system data includes, but is not limited to, employee data and logs,
geofence logs, player activity and betting information, and event logs
related to Colorado Sports Betting Operations.
(d)
Requirements for system specifications and sports betting system logging
shall be detailed by the Commission. Master, Sports Betting Operators,
Internet Sports Betting Operators and sports betting Vendors shall
address all such requirements in the internal controls submitted to the
Commission for approval.
(5)
Bets.
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Patron wagers placed in a Sports Betting Operation, self-service betting device
or other approved area within a licensed facility shall be made with:
(a)
Cash;
(b)
Cash equivalent;
(c)
Credit or debit card;
(d)
Free bets;
(e)
Sports betting vouchers;
(f)
Value gaming chips; and
(g)
Any other means approved by the Director or Director’s designee.
(6)
Patron sports betting via credit or debit card.
(a)
A patron may place a wager via credit or debit card, whether the patron
places the wager at a casino in the sports betting wagering area, sports
betting kiosk, online, or by a mobile device.
(b)
Funding of an account may be made online, in person, or through an
online account with an Internet Sports Betting Operator, on a bettor’s own
personal computer or mobile device. Other methods of funding may be
approved by the Director.
(7)
Wager displays.
When displaying wagers to the public through the Sports Betting Operation’s
close circuit television system, the display shall include, but is not limited to, the
following:
(a)
The odds; and
rson, or through an
online account with an Internet Sports Betting Operator, on a bettor’s own
personal computer or mobile device. Other methods of funding may be
approved by the Director.
(7)
Wager displays.
When displaying wagers to the public through the Sports Betting Operation’s
close circuit television system, the display shall include, but is not limited to, the
following:
(a)
The odds; and
(b)
A brief description of the event.
(8)
Ticket contents.
Upon completion of a betting transaction, the patron shall receive an unalterable
virtual or printed wager record which shall contain at a minimum the following
information:
(a)
The date and time the wager was placed;
(b)
The date and time the event is expected to occur;
(c)
Any patron choices involved in the wager:
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(i)
Wager selection;
(ii)
Type of wager and line postings;
(iii)
Any special condition(s) applying to the wager; and
(iv)
Pay out, applicable at the time the wager is placed.
(d)
Total amount wagered, including any promotional/bonus credits, if
applicable;
(e)
Event and market identifiers, if applicable; and,
(f)
Unique identification number of the wager record.
(g)
For printed wager records, the following must also be included:
(i)
Sports Betting Operation name;
(ii)
Unique sports betting device ID which issued the wager record; and
(iii)
Expiration period, if applicable.
(9)
Currency transaction reports and multiple transaction logs. Wagers and pay outs
made under these rules shall be subject to the requirements of the Division.
ber of the wager record.
(g)
For printed wager records, the following must also be included:
(i)
Sports Betting Operation name;
(ii)
Unique sports betting device ID which issued the wager record; and
(iii)
Expiration period, if applicable.
(9)
Currency transaction reports and multiple transaction logs. Wagers and pay outs
made under these rules shall be subject to the requirements of the Division.
(10)
Cancelled events and markets. The house rules and information available to the
patron through the sports betting device, or upon request at a licensed facility,
must clearly state what is to occur when an event or market is cancelled,
including the handling of wagers with multiple events, such as parlays, where
one or more of these legs are cancelled. If a single event or market is cancelled
for any reason, all wagers are to be refunded in full as soon as reasonably
possible.
(11)
Cancellation of wagers; prohibited sports betting participants. A Sports Betting
Operation shall cancel a wager made by a prohibited sports betting participant
and refund the amount wagered. A Sports Betting Operation must cancel a
wager under this rule at the time the Sports Betting Operation becomes aware or
should have been aware that the patron is a prohibited sports betting participant.
(12)
Cancellation of wagers. A Sports Betting Operation may, in its discretion, cancel
an accepted wager for obvious error or in the case of a change in circumstance
that makes grading the wager an impossibility. Obvious error shall be defined in
the Sports Betting Operator’s house rules. Any cancellation of wagers shall be
reported to the Division.
(13)
Cashier cancelled wagers. A cashier may not cancel a wager for which the
cashier wrote the ticket and must instead call a supervisor to cancel the wager.
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(14)
Prohibiting wagers for good cause.
vious error shall be defined in
the Sports Betting Operator’s house rules. Any cancellation of wagers shall be
reported to the Division.
(13)
Cashier cancelled wagers. A cashier may not cancel a wager for which the
cashier wrote the ticket and must instead call a supervisor to cancel the wager.
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(14)
Prohibiting wagers for good cause.
(a)
Pursuant to 44-30-1505 (7), C.R.S., a sports governing body may request
that the Commission restrict, limit or exclude a type of wager based solely
upon the actions of a single player.
(b)
A sports governing body may submit to the Director or Director’s designee
in writing (by providing notice in such form and manner as the Director or
Director’s designee may require) a request to restrict, limit or exclude a
certain type of wager based solely upon the actions of a single player with
respect to sporting events of such body, if the sports governing body
believes that such type, form, or category of sports wagering with respect
to sporting events of such body is contrary to public policy, unfair to
consumers, may undermine the perceived integrity of such body or
sporting events of such body, or affects the integrity of such body or
sporting events of such body.
(c)
The Director or Director’s designee shall request comment from Sports
Betting Operations on all such sports governing body requests. The
Director or Director’s designee may also request comment from
independent monitoring providers and other jurisdictions.
he perceived integrity of such body or
sporting events of such body, or affects the integrity of such body or
sporting events of such body.
(c)
The Director or Director’s designee shall request comment from Sports
Betting Operations on all such sports governing body requests. The
Director or Director’s designee may also request comment from
independent monitoring providers and other jurisdictions.
(d)
After giving due consideration to all comments received, the Director or
Director’s designee shall, upon a demonstration of good cause from the
requesting sports governing body, grant the request. The Director or
Director’s designee shall respond to a request concerning a particular
event before the start of the event, or if it is not feasible to respond before
the start of the event, no later than 7 days after the request is made. If the
Director or Director’s designee determines that the requesting sports
governing body is more likely than not to prevail in successfully
demonstrating good cause for its request, the Director or Director’s
designee may provisionally grant the request of the sports governing body
until the Director or Director’s designee makes a final determination as to
whether the requesting sports governing body has demonstrated good
cause. Absent such a provisional grant by the Director or Director’s
designee, Sports Betting Operations may continue to offer sports
wagering on sporting events that are the subject of such a request during
the pendency of the Director or Director’s designee’s consideration of the
applicable request.
(15)
Entity wagering.
Entity wagering is not permitted. Internet Sports Betting Operators and Sports
Betting Operators shall only accept wagers from individuals, not including
individuals acting on behalf of entities.
(16)
Promotions.
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uring
the pendency of the Director or Director’s designee’s consideration of the
applicable request.
(15)
Entity wagering.
Entity wagering is not permitted. Internet Sports Betting Operators and Sports
Betting Operators shall only accept wagers from individuals, not including
individuals acting on behalf of entities.
(16)
Promotions.
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(a)
Patrons must be able to access information pertaining to any promotions
or bonuses available to them. This information must be clear and
unambiguous, especially where promotions or bonuses are limited to
certain events, markets, or when other specific conditions apply.
(b)
A Sports Betting Operation shall comply with Commission rules regarding
complimentary play or any promotional event related to the conduct of
sports betting.
7.7
Sports betting kiosks.
(1)
In general.
(a)
A Sports Betting Operator may utilize Self-service betting devices(kiosks)
located in a licensed facility for betting transactions in conjunction with a
sports betting system in a location approved by the Director or Director’s
designee.
(b)
Self-service sports betting devices (kiosks) shall be subject to the
approvals and other requirements of the Commission.
(2)
Testing and certification. Before being deployed for use at a licensed facility, all
sports betting kiosks must be submitted to a Colorado approved independent
testing laboratory for testing and receive the required certification. The Colorado
approved independent testing laboratories shall certify that the sports betting
kiosk meets or exceeds the most current Division approved version of standards
for Kiosks, or equivalent standards as approved by the Commission, and the
standards established by the Division.
ubmitted to a Colorado approved independent
testing laboratory for testing and receive the required certification. The Colorado
approved independent testing laboratories shall certify that the sports betting
kiosk meets or exceeds the most current Division approved version of standards
for Kiosks, or equivalent standards as approved by the Commission, and the
standards established by the Division.
(3)
Reconciliation. The Sports Betting Operation’s accounting department shall
reconcile self-service sports betting devices (kiosks) at minimum every seven
days, pursuant to internal controls. Any variance of $500.00 or more shall be
documented by the accounting department and reported in writing to the
Commission’s audit department within 5 business days after drop and count of
kiosks. The report shall indicate the cause of the variance and shall contain any
documentation required to support the stated explanation.
(4)
Transaction reports. Each self-service sports betting device (kiosk) or
corresponding system shall be capable of generating a “Transaction Report,”
which documents each attempted and completed transaction. Unless otherwise
approved by the Commission, the report shall include, at a minimum:
(a)
The date and time;
(b)
A description of the transaction;
(c)
The value of credit card and debit card transactions;
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(d)
The value of currency dispensed and inserted;
(e)
The value of all sports betting vouchers dispensed and inserted; and
(f)
The value of all sports betting tickets dispensed and inserted.
(5)
Connection to sports betting system.
(a)
When used to redeem sports betting tickets or vouchers, sports betting
kiosks shall work in conjunction with an approved sports betting system
and shall be designed to:
The value of currency dispensed and inserted;
(e)
The value of all sports betting vouchers dispensed and inserted; and
(f)
The value of all sports betting tickets dispensed and inserted.
(5)
Connection to sports betting system.
(a)
When used to redeem sports betting tickets or vouchers, sports betting
kiosks shall work in conjunction with an approved sports betting system
and shall be designed to:
(i)
Accurately obtain the unique identification number of the item
presented for redemption and cause such information to be
accurately and securely relayed to the sports betting system for the
purpose of redemption;
(ii)
Issue currency or a sports wager voucher or both in exchange for
the item presented only if the sports betting system has authorized
and recorded the transaction; and
(iii)
Return a sports wager ticket and voucher to the patron when it
cannot be validated by the sports betting system or is otherwise
unredeemable.
(b)
When used to redeem sports wager vouchers, the sports betting kiosk or
sports betting kiosk computer system shall be capable of generating a
voucher redemption report for each gaming day. The report shall include
the voucher’s unique identifier, the date and time of redemption and the
value of the voucher.
(c)
When used to redeem sports wager tickets, the sports betting kiosk or
sports betting kiosk computer system shall be capable of generating a
ticket redemption report for each gaming day. The report shall include the
ticket’s unique identifier, the date and time of redemption and the value of
the ticket.
(d)
When used to issue sports wager vouchers, the sports betting kiosk or
sports betting kiosk computer system shall be capable of generating a
voucher issuance report for each gaming day. The report shall include the
voucher’s unique identifier, the date and time of issuance and the value of
the voucher.
the
ticket’s unique identifier, the date and time of redemption and the value of
the ticket.
(d)
When used to issue sports wager vouchers, the sports betting kiosk or
sports betting kiosk computer system shall be capable of generating a
voucher issuance report for each gaming day. The report shall include the
voucher’s unique identifier, the date and time of issuance and the value of
the voucher.
(e)
When used for credit card and debit card transactions, the sports betting
kiosk or sports betting kiosk computer system shall be capable of
generating a credit card and debit card transaction report for each gaming
day. The report shall include the transaction’s unique identifier, the date
and time of transaction and the value of the transaction.
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7.8
Sports betting reports; betting revenue; computation of taxes;
reconciliation.
(1)
Reports required.
(a)
The sports betting system shall be required to generate those reports
necessary to record the adjusted gross receipts, patron liability, ticket
redemption, and such other information relating to sports betting as
deemed necessary by the Director or as required by internal controls.
Such reporting shall be done using cash basis accounting.
(b)
To determine the daily win amount, the Sports Betting Operation’s
accounting department shall compare a win report from the sports betting
system to the reconciliation of the sports betting drawers. The operator
shall be required to calculate and report adjusted gross sports betting
receipts using the higher amount identified in such comparison, unless
otherwise authorized in its internal controls.
(c)
The Sports Betting Operation shall permit duly authorized representatives
of the Commission’s audit department to examine the operator’s accounts
and records for the purpose of certifying total gross revenue receipts and
adjusted gross revenue receipts.
(d)
Such information shall be provided as prescribed by the division.
(2)
Calculation of taxes.
otherwise authorized in its internal controls.
(c)
The Sports Betting Operation shall permit duly authorized representatives
of the Commission’s audit department to examine the operator’s accounts
and records for the purpose of certifying total gross revenue receipts and
adjusted gross revenue receipts.
(d)
Such information shall be provided as prescribed by the division.
(2)
Calculation of taxes.
(a)
Remittance of betting taxes shall be the sole responsibility of the licensee
that accepts, calculates, and is responsible for settlement of the sports
wager. Such responsibility shall be included in the operating agreements
between parties.
(b)
In determining sports betting tax liability for a reporting period, a sports
betting operator shall take the sum of taxable proceeds for all gaming
days in the period and multiply by the decimal representation of the sports
betting tax percentage.
Taxable proceeds for a gaming day are the net sports betting proceeds for
the gaming day minus the absolute value of any carry over loss from the
previous gaming day. If the taxable proceeds for a gaming day result in a
negative number, the taxable proceeds for that gaming day is zero and the
resulting negative number is the carry over loss applied to the next gaming
day.
(c)
Sports Betting Free Bets Reduction.
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(i)
Until January 1, 2023, when calculating “net sports betting
proceeds” each month, a Sports Betting Operator or Internet Sports
Betting Operator may:
(A)
Include all free bets placed by players with the Sports
Betting Operator or; and
(B)
Carry forward any unused free bet credits accumulated on or
before November 30, 2022.
uction.
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(i)
Until January 1, 2023, when calculating “net sports betting
proceeds” each month, a Sports Betting Operator or Internet Sports
Betting Operator may:
(A)
Include all free bets placed by players with the Sports
Betting Operator or; and
(B)
Carry forward any unused free bet credits accumulated on or
before November 30, 2022.
(ii)
On and after January 1, 2023, when calculating “net sports betting
proceeds” each month, a sports betting operator or Internet Sports
Betting Operator shall include only a portion of the total free bets
placed by players with the sports betting operator or Internet Sports
Betting Operator, as follows:
(A)
On and after January 1, 2023, through June 30, 2024, no
more than two and one-half percent of the total amount of all
bets placed by players with that sports betting operator or
Internet Sports Betting Operator each month;
(B)
On and after July 1, 2024, through June 30, 2025, no more
than two and one-fourth percent of the total amount of all
bets placed by players with that sports betting operator or
Internet Sports Betting Operator each month;
(C)
On and after July 1, 2025, through June 30, 2026, no more
than two percent of the total amount of all bets placed by
players with that sports betting operator or Internet Sports
Betting Operator each month; and
(D)
On and after July 1, 2026, no more than one and three-
quarters percent of the total amount of all bets placed by
players with that sports betting operator or Internet Sports
Betting Operator each month.
(iii)
On or after January 1, 2023, a sports betting operator or Internet
Sports Betting Operator shall not:
(A)
Carry over to the next month any free bets placed in excess
of the deduction allowed for any month; or
(B)
Carry forward any unused free bet credits accumulated
before January 1, 2023.
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7.9
Accounting controls for the casino onsite Sports Betting Operation.
, a sports betting operator or Internet
Sports Betting Operator shall not:
(A)
Carry over to the next month any free bets placed in excess
of the deduction allowed for any month; or
(B)
Carry forward any unused free bet credits accumulated
before January 1, 2023.
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7.9
Accounting controls for the casino onsite Sports Betting Operation.
(1)
Internal audit procedures. The procedures and requirements outlined in this Rule
shall apply to Sports Betting Operators and Sports Betting Operations.
(2)
Observation and testing of cashiering.
(a)
The Sports Betting Operator shall establish procedures for the observation
and testing of the compliance with the system of internal controls for
sports betting cashiering.
(b)
The internal auditor or equivalent shall observe and review, on a semi-
annual basis, the following procedures, at a minimum:
(i)
The countdown procedures;
(ii)
The casino cage accountability to the general ledger;
(iii)
The casino cage accountability to the main bank, vault, and change
banks;
(iv)
Check cashing procedures;
(v)
Shift and day procedures; and
(vi)
Any other procedures deemed necessary by the Director or the
Commission to ensure compliance with Limited Gaming ICMP.
(c)
The internal auditors or equivalent shall test, on a quarterly basis, the
following procedures, at a minimum:
(i)
Reconcile summary sheets to physical instruments on a sample
basis;
(ii)
Review processing of payments on returned checks; and
(iii)
If applicable, review procedures and controls over the primary,
secondary, and non-value chip inventory.
(d)
Any other procedures deemed necessary by the Director or the
Commission to ensure compliance with limited Gaming ICMP.
(3)
Accounting controls for the Sports Betting Operation.
(a)
A cashier shall begin a shift with an imprest amount sports betting
inventory, consisting of currency and coin. No funds shall be added to or
removed from the sports betting inventory during such shift except:
tory.
(d)
Any other procedures deemed necessary by the Director or the
Commission to ensure compliance with limited Gaming ICMP.
(3)
Accounting controls for the Sports Betting Operation.
(a)
A cashier shall begin a shift with an imprest amount sports betting
inventory, consisting of currency and coin. No funds shall be added to or
removed from the sports betting inventory during such shift except:
(i)
In collection of sports wagers;
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(ii)
In order to make change for a patron buying a sports betting ticket;
(iii)
In collection for the issuance of sports betting vouchers;
(iv)
In payment of winning or properly cancelled or refunded sports
betting tickets;
(v)
In payment of sports betting vouchers; or
(vi)
In exchanges with the cashier’s cage, a satellite cage, or Sports
Betting Operation booth vault supported by proper documentation
which documentation shall be sufficient for accounting
reconciliation purposes.
(b)
A “sports betting count sheet” shall be completed and signed by a
supervisor, and the following information, at a minimum, shall be recorded
thereon at the commencement of a shift:
(i)
The date, time, and shift of preparation;
(ii)
The denomination of currency and coin in the sports betting
inventory issued to the cashier;
(iii)
The total amount of each denomination of currency and coin in the
sports betting inventory issued to the cashier;
(iv)
The sports betting window number to which the cashier is assigned;
and
(v)
The signature of the sports betting shift supervisor.
(c)
A cashier assigned to a cashier window shall count and verify the sports
betting inventory at the sports betting vault, and shall agree the count to
the sports betting count sheet. The cashier shall sign the count sheet
attesting to the accuracy of the information recorded thereon. The sports
betting inventory shall be placed in a cashier’s drawer and transported
directly to the appropriate Sports Betting Operation booth window by the
cashier.
unt and verify the sports
betting inventory at the sports betting vault, and shall agree the count to
the sports betting count sheet. The cashier shall sign the count sheet
attesting to the accuracy of the information recorded thereon. The sports
betting inventory shall be placed in a cashier’s drawer and transported
directly to the appropriate Sports Betting Operation booth window by the
cashier.
(d)
If the sports betting window net receipts for the shift, as generated by the
system, does not agree with the sports betting count sheet total plus the
sports betting inventory, the shift supervisor shall record any overage or
shortage. If the count does not agree, the cashier and the shift supervisor
shall attempt to determine the cause of the discrepancy in the count. Any
discrepancy that cannot be resolved by the cashier and the shift
supervisor shall be reported in writing to the department supervisor in
charge at such time. Any discrepancy in excess of $500 shall be reported
to the Division. The report shall include the following:
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(i)
Date on which the discrepancy occurred;
(ii)
Shift during which the discrepancy occurred;
(iii)
Name of the cashier;
(iv)
Name of the supervisor;
(v)
Window number; and
(vi)
Amount of the discrepancy.
(e)
The Sports Betting Operation booth shift supervisor shall compare the
cashier window net for the shift as generated by the terminal and if it
agrees with the sports betting count sheet total plus the sports betting
inventory, shall agree the count to the sports betting count sheet and sign
the sports betting count sheet attesting to the accuracy.
(4)
Transactions.
The Sports Betting Operator shall establish policies and procedures to ensure
that all transactions that flow through the casino cage within the Sports Betting
Operation are accounted for. These policies and procedures shall include, but
are not limited to, the following:
he count to the sports betting count sheet and sign
the sports betting count sheet attesting to the accuracy.
(4)
Transactions.
The Sports Betting Operator shall establish policies and procedures to ensure
that all transactions that flow through the casino cage within the Sports Betting
Operation are accounted for. These policies and procedures shall include, but
are not limited to, the following:
(a)
All transactions shall be recorded on a main bank or vault accountability
form or its equivalent on a per shift basis.
(i)
All increases or decreases to the main bank or vault shall be
supported by the appropriate documentation.
(ii)
At the end of a shift, the cashiers assigned to the outgoing shift
shall:
(1)
Record on a main bank or vault accountability form, or its
equivalent, the face value of each cage inventory item
counted and the total of the opening and closing cage
inventories; and
(2)
Reconcile the total closing inventory with the total opening
inventory.
(b)
At the conclusion of each gaming day, copies of the main bank or vault
accountability forms and all supporting documentation shall be forwarded
to the accounting department.
(c)
Signature requirements shall be established for outgoing and incoming
cashiers.
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(d)
Any other policies and procedures deemed necessary by the Director to
ensure compliance.
7.10 Geofence requirement.
(1)
Geofence requirement.
(a)
In order to prevent unauthorized use of the internet or a mobile device to
place a sports wager when a patron is not within the state of Colorado, the
Sports Betting Operation shall:
s.
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(d)
Any other policies and procedures deemed necessary by the Director to
ensure compliance.
7.10 Geofence requirement.
(1)
Geofence requirement.
(a)
In order to prevent unauthorized use of the internet or a mobile device to
place a sports wager when a patron is not within the state of Colorado, the
Sports Betting Operation shall:
(i)
Utilize a geofence system to reasonably detect the physical location
of a patron attempting to access the online sports betting system
and place a wager; and to monitor and block unauthorized attempts
to access the online sports betting system in order to place a
wager.
(ii)
The geofencing system shall ensure that any patron is located
within the permitted boundary when placing any wager, and shall
be equipped to dynamically monitor the patron’s location and block
unauthorized attempts to access the online sports betting system in
order to place a wager throughout the duration of the sports betting
patron session.
(2)
The Director shall approve technical specifications for geolocation systems and
any specific requirements related to geofence technology. The Director may
require additional system requirements to combat emerging threats to the
security of the geolocation system and verification of the patron’s or device
location.
7.11 Sports betting accounts.
(1)
Account required.
(a)
A Sports Betting Operation shall limit each patron to one (1) active and
continuously used sports betting account and username.
(b)
A Sports Betting Operation shall implement rules and publish procedures
to terminate all accounts of any sports betting account patron that
knowingly and intentionally establishes or seeks to establish multiple
active accounts, in contravention of this Rule, whether directly or by use of
another person as a proxy.
(2)
Age and identify verification.
A full identity check must be undertaken before a patron is allowed to place a
wager:
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any sports betting account patron that
knowingly and intentionally establishes or seeks to establish multiple
active accounts, in contravention of this Rule, whether directly or by use of
another person as a proxy.
(2)
Age and identify verification.
A full identity check must be undertaken before a patron is allowed to place a
wager:
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(a)
Only patrons twenty-one (21) years of age and older may deposit funds or
participate in betting. The Sports Betting Operation must deny the ability to
deposit funds or participate in betting to any person that submits a birth
date that indicates they are under the legal participation age.
(b)
Patron verification must use commercially reasonable standards in
conformity with Rule 6.11 to confirm that the patron is not a prohibited
sports betting participant.
(c)
Details of patron verification must be kept in a secure manner.
(d)
Third-party service providers may be used for age and identity verification
of patrons.
(e)
The operator must have a documented policy for the handling of patrons
discovered to be using an account in a fraudulent manner, including but
not limited to:
(i)
The maintenance of information about any patron’s activity, such
that if fraudulent activity is detected, the regulatory body has all of
the necessary information to take appropriate action;
(ii)
The suspension of any patron account discovered to be providing
access to fraudulent patrons; and
(iii)
The treatment of deposits, wagers, and wins associated with a
fraudulent patron’s account.
(3)
Patron account controls.
(a)
Patron protection information must be readily accessible to the patron.
The patron protection information must contain at a minimum:
mation to take appropriate action;
(ii)
The suspension of any patron account discovered to be providing
access to fraudulent patrons; and
(iii)
The treatment of deposits, wagers, and wins associated with a
fraudulent patron’s account.
(3)
Patron account controls.
(a)
Patron protection information must be readily accessible to the patron.
The patron protection information must contain at a minimum:
(i)
Information about potential risks associated with excessive
participation, and where to get help related to betting responsibly;
(ii)
The self-imposed limitations shall be available to the patron at both
the time of account registration and first deposit;
(iii)
A list of the available patron protection measures that can be
invoked by the patron, such as self-imposed limits, and information
on how to invoke those measures; and
(iv)
Mechanisms in place which detect unauthorized use of their
account, such as reviewing credit card statements against known
deposits.
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(b)
Patrons must be provided with an easy and obvious method to impose
limitations for betting parameters including, but not limited to, deposits,
wagers and time-based limitations. The self-imposed limitation method
must provide the following functionality:
(i)
Upon receiving any self-imposed limitation order, the Sports Betting
Operation must ensure that all specified limits are correctly
implemented immediately or at the point in time that was clearly
indicated to the patron;
(ii)
The self-imposed limitations set by a patron must not override more
restrictive operator imposed limitations. The more restrictive
limitations must take priority;
(iii)
Once established by a patron and implemented by the sports
betting system, it must only be possible to reduce the severity of
self-imposed limitations upon 24 hours’ notice, or as required by the
Commission; and
(iv)
Self-imposed limitations must not be compromised by internal
status events, such as self-imposed exclusion orders and
revocations.
re restrictive
limitations must take priority;
(iii)
Once established by a patron and implemented by the sports
betting system, it must only be possible to reduce the severity of
self-imposed limitations upon 24 hours’ notice, or as required by the
Commission; and
(iv)
Self-imposed limitations must not be compromised by internal
status events, such as self-imposed exclusion orders and
revocations.
(c)
A master licensee is not required to treat a patron’s self-imposed
limitations:
(i)
On limited gaming as applying to any sports betting activities that it
conducts or that are conducted by its affiliated or contracting
entities; or
(ii)
On sports betting as applying to any limited gaming activities it
conducts or its affiliated limited gaming licensees conduct.
(4)
Account requirements. In order to establish a sports betting account, a Sports
Betting Operation shall:
(a)
Create an electronic patron file, which shall include at a minimum:
(i)
The patron’s legal name;
(ii)
The patron’s date of birth;
(iii)
The patron’s Social Security number, or the last four digits thereof,
or an equivalent identification number for a noncitizen patron, such
as a passport or taxpayer identification number;
(iv)
The patron’s sports betting account number or username;
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(v)
The patron’s residential address; a post office box is not
acceptable;
(vi)
The patron’s electronic mail address;
(vii)
The patron’s telephone number;
(viii)
Any other information collected from the patron used to verify his or
her identity;
(ix)
The method used to verify the patron’s identity; and
(x)
The date of verification.
(b)
Encrypt all of the following information contained in an electronic patron
file:
(i)
Any portion of the patron’s Social Security number or equivalent
identification number for a noncitizen patron, such as a passport or
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