BASIS AND PURPOSE FOR RULE 1
The purpose of Rule 1 is to present definitions of various terms used throughout the rules of the Colorado Limited Gaming Control Commission so that the rules can be uniformly applied and understood. The statutory basis for Rule 1 is found in sections 12-47.1-102 C.R.S., 12-47.1-103, C.R.S., 12-47.1-104, C.R.S., 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., and 12-47.1-302, C.R.S. Amended 2/14/14
RULE 1 GENERAL RULES AND REGULATIONS
47.1-101 Purpose and statutory authority.
These Rules and Regulations are adopted by the Colorado Limited Gaming Control Commission governing the establishment and operation of limited gaming in Colorado pursuant to the authority provided by article 47.1, title 12, C.R.S. The Commission will, from time to time, promulgate, amend and repeal such regulations, consistent with the policy, objects and purposes of the Colorado Limited Gaming Act, as it may deem necessary or desirable in carrying out the policy and provisions of that Act.
47.1-105 Unauthorized gambling.
47.1-106 Definitions.
(1) "Agent or Employee of the Commission" shall include all employees of the Division.
(2) "Association" means two or more persons united and acting together without a corporate charter.
(3) “Background investigation” means the personal history, character, reputation, associations, record, criminal history, and financial check of an applicant for a license to establish the suitability of such applicant to become a licensee.
(4) "Building" means a common structure that is built or constructed or any piece of constructed work artificially built up or composed of parts joined together in some definite manner.
(5)
(6) "Chip" means a nonmetal or partly metal representative of value issued and/or sold by a licensee for use at gaming. Amended 11/30/2012
(a) Cashable chips are issued and/or sold by the licensee for gaming and are redeemable for cash.
(b) Non-cashable chips are issued by the licensee for gaming and are not redeemable for cash.
(7) "Convicted of a Crime" shall include any ultimate finding of fact in a criminal proceeding that an individual is guilty of a crime, whether the judgment rests on a verdict of guilty, a plea of guilty, or of nolo contendere, and irrespective of whether entry of judgment or imposition of sentence is suspended or deferred by the court.
(8) "Costs" means sums of money to be paid to the Commission.
(8.5)
(a) "Credit" means allowing any person any length of time in which to make payment or otherwise honor a financial obligation, whether express or implied and includes lending of cash or cash equivalent.
(c) "Credit" does not include:
(i) Transactions in the ordinary course of business which are both disclosed to the Division and approved by the Commission as authorized interests, pursuant to sections 12-47.1-808, 835, C.R.S, or regulations 47.1-308, 309, 310, 405, 420;
(ii) Lawful transactions in the ordinary course of business in which licensees share resources with each other for business purposes and in which licensees have no ability to attempt to exert control over the affairs of other licensees; and
(iii) Pre-paid magnetized strip cards used in lieu of cash, chips, or tokens.
(9) “Drop" means the total amount of money, chips, tickets, coupons, Mobile ATM Receipts and tokens removed from the drop boxes. Amended 7/1/13
(10) "Drop box" means a locked container permanently marked with the game and a number corresponding to a permanent number on the table for blackjack, poker, craps, and roulette tables. For slot machines, a container in a locked portion of the machine or its cabinet used to collect the money and tokens retained by the machine that is not used to make automatic payouts from the machine.
(11) "Financial institution" means a bank, savings and loan association, credit union, trust company, or other similar entity chartered by the United States, a state, or a territory or commonwealth of the United States.
(12) [Free play - Repealed eff. 05/15/2014]
(13) "Gaming contract" means an agreement in which a person does business with or on the premises of an entity licensed under article 47.1 of title 12, C.R.S.
(13.5) "Gaming device" or "gaming equipment" includes, in addition to the definition set forth in section 12-47.1-103(10), C.R.S., any progressive system, slot monitoring or control system, ticket redemption kiosk, or cashless system, and also includes any "physical or electronic versions," pursuant to section 12-47.1-103(10), (19), C.R.S., to the extent such physical or electronic versions function in the manner of: Eff 04/30/2007, Amended 2/14/14
(a) Slot machines;
(b) The games of blackjack, craps, poker, or roulette as defined in section 12-47.1-103(4), (5.7), (22), (25.5), (26), C.R.S.;
(c) Tables used for blackjack, craps, poker, and roulette;
(d) Cards used to play blackjack or poker; or
(e) Dice used to play craps.
(14) "Gaming employee" means, in addition to the definition set forth in section 12-47.1-103(11):
(15) "Imprest bank" means a predetermined dollar amount of chips, tokens, or cash kept by the licensee.
(16) "Jackpot verification mode" means the period of time between the progressive jackpot activation of a progressive slot machine and the resetting of the device which caused its activation.
(17) "Lammer" or "lammer button" means a chip-like implement with a numeral.
(19) "Link" means one or more progressive slot machines that are connected to a progressive controller and that may be played in order to achieve the stated progressive amount.
(20) "Matched play" means the use of a coupon at table games that is issued to a patron by an establishment for play that must be accompanied by a bet. Eff 11/30/2006
(21) "Moral turpitude" means an act done contrary to honesty and good morals; it is an act of baseness, vileness, or depravity in the private and social duties which a person owes to a fellowperson or to society in general.
(22) "Normal mode" means the mode of a progressive slot machine at all times other than when it is in the jackpot verification mode.
(22.2) "Physical skill" means an individual’s physical coordination, agility, or nimbleness, or lack thereof. Eff 11/30/2007
(24) "Proposition player" means a person in a poker game paid a fixed sum by the licensee for the specific purpose of playing in a card game, who uses personal funds and who retains the winnings and absorbs the losses.
(24.7) "Slot Coupon" means an encoded credit certificate which, when inserted into a slot machine, is validated by a computerized system which causes redeemable credits on the face amount to be placed on the machine. A slot coupon has no value unless inserted into a slot machine or redeemed by the casino in another approved manner.
(26) "Substantial interest" means the lesser of: as large an interest in a corporation, partnership, or association as that of any other shareholder, partner, or principal; or any financial or equity interest equal to or greater than five percent.
(27) "Support licensee" means a gaming employee licensed by the Commission, but does not include licensed key employees.
(27.3) "Ticket" means an encoded credit ticket produced by a slot machine ticket printer system when cashing out redeemable credits. (47.1-106(8.3) added perm. 10/30/99)
(30) "Wireless" means a wireless handheld validation unit used with a supporting Wireless Local Area Network (WLAN) as part of an approved gaming system.
BASIS AND PURPOSE FOR RULE 2
The purpose of Rule 2 is 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 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-301, C.R.S., 12-47.1-302, C.R.S., 12-47.1-501, C.R.S., 12-47.1-503, C.R.S., 12-47.1-508, C.R.S., 12-47.1-1103, C.R.S., and 24-4-105, C.R.S.
RULE 2 POWERS AND DUTIES OF COMMISSION AND DIRECTOR
47.1-201 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.
47.1-205 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.
47.1-207 Authority of Director.
(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 five percent ownership equity in the licensee.
(6) The director may approve ownership changes in a licensee, without necessity for commission approval, when:
(b) When no person will attain a total effective ownership equity of five percent or greater, when such person previously held less than five percent equity.
(8) The Director may authorize a retail gaming license applicant to own, possess, or own and possess slot machines in this state before obtaining a retail gaming license. In order for a retail applicant to own, possess, or own and possess slot machines before licensure, the following conditions must be met:
(a) The retail gaming license applicant will submit a request to own, possess, or own and possess slot machines to the Director; and
(b) The Director determines if significant progress has been made in the background investigation, and is satisfied that the investigation of the applicant conducted thus far, and the application in its entirety, indicate that the applicant and its gaming business: meet all the requirements of article 47.1 of title 12, C.R.S.; do not present any danger to the public or to the reputation of limited gaming in this state; and that further investigation most likely will not uncover any derogatory information about the applicant; and
(c) All other requirements to possess slot machines have been met.
47.1-210 Enforcement powers.
(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 47.1 of title 12, 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.
47.1-211 Filing or notice.
47.1-214 Death of a gaming patron.
All coins, chips, tokens, gaming coupons, or tickets in the possession of a gaming patron who dies before such coins, chips, tokens, gaming coupons, or tickets are surrendered by such patron, shall be paid by the licensee by check drawn upon a financial institution, chartered by the State of Colorado or any other 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.
BASIS AND PURPOSE FOR RULE 3
The purpose of Rule 3 is to establish and provide the specific information required on license applications; to establish yearly license fees for each type of license; to establish nonrefundable application fees; 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, temporary, and duplicate licenses. The statutory basis for Rule 3 is found in sections 12-47.1-102 C.R.S., 12-47.1-103, C.R.S., 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-302, C.R.S., and part 5 of article 47.1 of title 12, C.R.S.
RULE 3 APPLICATIONS, INVESTIGATIONS AND LICENSURE
47.1-301 Qualifications for licensure.
(4) Comply with all specific laws, rules and regulations regulating limited gaming in Colorado, and any other regulatory or taxing authority.
47.1-302 Applications.
(2) Renewal applications for manufacturer-distributor, associated equipment supplier, operator, and retail license 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 24-4-104(7) C.R.S. (47.1-302(2) Perm. 10/30/96) Amended 2/14/14
47.1-303 License fees.
47.1-305 Investigation fees.
(2) Before any such investigations are conducted, each applicant shall pay a deposit by check made out to the Colorado Division of Gaming to the gaming fund as follows: Eff 04/01/2007
(a) For each Type 1 original applicant, the deposit shall be $5,000.00. For purposes of the deposit requirement, a Type 1 Applicant consists of either a single person, or an organization where the total number of all officers, directors, general partners, and five percent or more stockholders or equity owners totals 6 or less. In addition, all the aforementioned persons must reside in Colorado. Eff 04/01/2007
(c) For each person who applies for a key employee license, and who is not an officer, director, general partner or five percent equity owner of an applicant, the deposit shall be $1,000.00. Eff 04/01/2007
(d) For each officer, director, general partner or five percent equity owner of an applicant who applies for suitability separate from the original application or a change of ownership application, the deposit shall be $1,000.00. Eff 04/01/2007
(e) For each change of ownership application involving more than an aggregate five percent effective ownership change, the deposit shall be $2,500.00. (47.1-305 amended perm. 10/30/99) Eff 04/01/2007
(f) For each variation game applicant and table game with electronic betting terminal (EBT) applicant, the deposit shall be $2000.00. The Director may waive the background investigation and accompanying deposit for an applicant who has already been found suitable by the Commission or by the Division.
(6) 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. Eff 04/01/2007