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Can I offer contests that involve chance-based games in Colorado? What are the requirements?

Based on the documents provided, offering contests that involve chance-based games in Colorado is generally prohibited, except as permitted by Article XVIII, Section 2 of the Colorado Constitution [1.1]. However, there are specific requirements that must be met for games of chance to be operated legally in Colorado.

Requirements for Operating Games of Chance in Colorado

  • Games of chance may only be operated if skill is the dominant factor in winning the game [1.1][1.2].
  • The operator of the game or their designee must be capable of demonstrating that a questionable game can be won through practice or skill. If the operator or their designee is unable to do so, the game will be deemed to be one of chance [1.1][1.2].
  • Prior to the operation of any carnival game, the operator must notify the Colorado State Fair Public Safety Officer Command Staff in writing of the carnival location, the names and addresses of the owners, operators, and agents of each carnival game, and the nature of the game [1.4].
  • Colorado State Fair Public Safety Officers or their designees may pre-inspect any game, booth, premises upon which the game or booth sits, or prizes to determine their nature and acceptability. Operators of games and booths consent to further inspections of any game, booth, premises, or prize, without prior notice [1.4].

Additional Regulations for Sweepstakes and Contests

In addition to the requirements for operating games of chance, there are also regulations specific to sweepstakes and contests in Colorado. These regulations are intended to prevent deceptive practices and ensure that consumers are provided with all relevant information necessary to make an informed decision concerning sweepstakes and contests [5.1].

  • Sweepstakes and contests must provide complete disclosure of rules and operation, and may not engage in misleading or deceptive prize promotions [5.1].
  • The terms of sweepstakes and contests regulations shall be construed liberally in order to achieve the purpose of preventing deceptive promotions [5.1].
  • No cash prizes are allowed for games of chance [1.2].
  • No game may be played where the outcome depends upon the word of the operator against the word of the player [1.2].
  • No game may be conducted where the game operator controls or affects the outcome of the game by enforcing rules, selectively or randomly during actual pay-to-play, when such rules are not enforced during free plays by the player or demonstrations by the operator [1.2].
  • No merchandise may be displayed in any carnival game that is not one of the prizes possible to be won [1.2].
  • While in operation, there must be a sign stating the rules of the game, the cost to play, how the game is played, and exactly what is required of the player in order to win each prize offered. Signs must be of a sturdy material and the lettering must be plain and clearly posted and of sufficient height to be readable by all players [1.2].

Conclusion

In summary, offering contests that involve chance-based games in Colorado is generally prohibited, except as permitted by Article XVIII, Section 2 of the Colorado Constitution. However, there are specific requirements that must be met for games of chance to be operated legally in Colorado. Additionally, there are regulations specific to sweepstakes and contests that must be followed to prevent deceptive practices and ensure that consumers are provided with all relevant information necessary to make an informed decision. No cash prizes are allowed for games of chance, and there are additional regulations for the operation of games of chance, such as the requirement that skill is the dominant factor in winning the game, and that no game may be played where the outcome depends upon the word of the operator against the word of the player.

Source(s):
Jurisdiction

Colorado