New Law Sets Colorado To Tackle Grey Casinos

  • A new law that allows the Colorado Division of Gaming to investigate “grey casinos” law was signed by Gov. Jared Polis back in June 2022.
  • The law grants the division power to conduct investigations in more towns.

DENVER – The Colorado Division of Gaming now has the jurisdiction to investigate outside of the three mountain towns that allow for casino gambling.

This comes from the signing of a new law by Gov. Jared Polis back in June. The law aims to give power to the division to investigate and take down “grey casinos.”

These casinos outside of the allowed regions and avoid paying taxes to the state. Many operations could be shut down in the coming months.

Colorado Division Of Gaming Crackdown

These grey casinos operate in locations like strip malls across Colorado. Patrons partake in gambling games like slot machines and are paid out in a multitude of ways.

Some pay cash directly, others payout with prizes, and in some instances, operators pay patrons with cryptocurrency prizes. This is believed to be an attempt to avoid taxation according to experts.

“We’ll be working to get this gray market out of Colorado,” said Dan Hartman, Colorado Division of Gaming Director.

These grey casinos do not advertise themselves as casinos. However, the similarities between these operations and legitimate land-based casinos make it clear that these grey casinos are targeting those looking to gamble.

“I guess for the online games, I guess you could say it’s kind of like casinos,” said unnamed cashier during Denver7’s investigation.

Local news station Denver7 investigated a grey casino, learning the process of the operation and seeing how much money is being exchanged.

At these adult gaming arcades, it was revealed that players win thousands of dollars from these slots, with one woman, in particular, winning $13,000 playing.

For crypto prizes, players can convert their crypto into cash at nearby crypto machines. This is another method used by these operators to lure in players.

“They make it legal by the crypto machine,” said an anonymous arcade customer. “What they give you then is crypto money and then you go to that machine, and it turns it into American money.”

With the new law passing, the division will crack down on many of these locations. The grey casino gambling market is likely on its last legs.