Colorado House says ‘game over’ to arcades offering cash prizes
DENVER – A bill that would effectively ban arcades that pay out cash prizes passed the Colorado House on a strong 47-14 vote Monday.
House Bill 1234 would define simulated gambling devices to include the pay-for-play games. That puts in peril the small businesses that offer the games, but opponents say they’re skirting the laws that limit gambling to Black Hawk, Central City and Cripple Creek.
The bill bounces to the state Senate.
The businesses argue their games aren’t luck, like slot machines; they’re skill.
“We are continuing to express to the General Assembly that this bill is the death knell for adult skill game arcades,” Chris Howes, the executive director of the Colorado Skill Games & Entertainment Association, told Colorado Politics Monday. “These are simply arcades that feature video games that are fun to play because the player is in control. Everyone knows that the big casinos feature games where the player has zero control over the dice, the wheel or the slot machine.
“This legislation pulls the rug out from under after our small business owners who have invested hundreds of thousands of dollars in a legal business operation and who have never lost in a court of law. Now the casino industry wants to shut them down and is using the strong arm of government to do so. We hope that the Senate will see through this injustice, and we were thankful to see the wide ideological range of opposition the bill received in the House.”
The bill is sponsored by House Majority Leader KC Becker of Boulder and Republican Rep. Paul Lundeen, a Republican from Monument. Sen. Bob Gardner, a Republican from Colorado Springs, will carry the legislation in the upper chamber.
Supporters said the bill gives law enforcement and local governments more control over simulated gambling devices that offer cash payouts. The legislature passed a law three years ago that resulted in a series of raids at such arcades, but only case has made it before a judge, and it was tossed out the because it was found too vague.
“We are grateful that our state representatives put the will of voters ahead of special interests like illegal gambling arcades,” Michelle Lyng with the casino-backed group Protect Our Neighborhoods said in a statement Monday. “The passage of HB18-1234 was the right choice for Colorado and a great milestone, but we have far more work to do. While we wait for this bill to pass in the Senate, illegal gambling arcades continue to take advantage of vulnerable communities-communities that have already voted against gambling expansion.
“There are no consumer protections at illegal gambling establishments and no guarantees that the games are fair. Coloradans who walk in their doors don’t know the risks.”
The organization provided a statement from former state Senate majority leader and Pueblo district attorney Bill Thiebaut.
“Arcade owners are lobbying against House Bill 1234 because this legislation promises to give cities and counties the tools to shut these illegal gambling arcades down once and for all,” he said. “Voters in Colorado have made their opinions about gambling abundantly clear. We don’t want gambling in our neighborhoods.”


