First Regular Session

Seventy-second General Assembly

STATE OF COLORADO
INTRODUCED

LLS NO. 19-0030.03 Duane Gall x4335 HOUSE BILL 19-1327

HOUSE SPONSORSHIP
Garnett and Neville, Roberts, Van Winkle

SENATE SPONSORSHIP
Donovan and Cooke, Priola

House Committees Senate Committees

Finance

A BILL FOR AN ACT

101 CONCERNING SPORTS BETTING, AND, IN CONNECTION THEREWITH,
102 SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF
103 COLORADO A BALLOT MEASURE AUTHORIZING THE COLLECTION
104 OF A TAX ON THE NET PROCEEDS OF SPORTS BETTING THROUGH
105 LICENSED CASINOS AND DIRECTING THE REVENUES GENERATED
106 THROUGH COLLECTION OF THE SPORTS BETTING TAX TO
107 SPECIFIED PUBLIC PURPOSES, INCLUDING THE STATE WATER
108 PLAN THROUGH CREATION OF THE WATER PLAN
109 IMPLEMENTATION CASH FUND.

Bill Summary

(Note: This summary applies to this bill as introduced and does

not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.
 applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)

In 2018, the United States supreme court held in Murphy v.

National Collegiate Athletic Association, 138 S. Ct. 1461, that a federal
law prohibiting states from authorizing sports betting violated the tenth
amendment of the United States constitution. States may now authorize
sports betting.
The bill decriminalizes sports betting in Colorado, effective May
1, 2020, under the following conditions:
! The collection of a tax on the net proceeds of sports betting
must be approved by the registered electors of Colorado at
the November 2019 general election;
! Sports betting will be regulated by the department of
revenue, subject to supervision by the existing limited
gaming control commission;
! A limited number of licenses will be issued. Persons or
entities currently licensed to conduct limited gaming (i.e.,
the owners of casinos in Central City, Black Hawk, and
Cripple Creek) are the only persons or entities eligible to
hold a "master license" to conduct sports betting upon
paying a license fee and submitting to background checks.
A master license entitles the licensee to contract with a
licensed "sports betting operator" or a licensed "internet
sports betting operator", or both, for the operation of sports
betting; and
! The state will collect a tax of 10% on the net proceeds of
sports betting activity to fund implementation of the state
water plan and other public purposes.

1 Be it enacted by the General Assembly of the State of Colorado:

2 SECTION 1. In Colorado Revised Statutes, 44-30-102, add (3)
3 as follows:
4 44-30-102. Legislative declaration. (3) THE GENERAL ASSEMBLY
5 FURTHER FINDS, DETERMINES, AND DECLARES THAT:

6 (a) WHEN, IN 2018, THE UNITED STATES SUPREME COURT HELD IN

7 MURPHY V. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, 138 S. CT.
8 1461, THAT THERE EXISTED NO CURRENT FEDERAL IMPEDIMENT TO AN

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 1 INDIVIDUAL STATE'S AUTHORITY TO LEGALIZE SPORTS BETTING, BUT THAT

2 SUCH AN EFFORT WAS SUBJECT ONLY TO THAT STATE'S OWN

3 CONSTITUTIONAL LIMITS ON THAT AUTHORITY, COLORADO HAD THE

4 OPTION TO EXPAND THE RESPONSIBILITIES OF THE LIMITED GAMING

5 CONTROL COMMISSION CREATED IN THIS ARTICLE 30 TO INCLUDE SPORTS

6 BETTING;

7 (b) EXPANSION OF THE COMMISSION'S ROLE IN THIS WAY IS

8 APPROPRIATE, GIVEN THE COMMISSION'S EXPERIENCE IN REGULATING

9 LIMITED GAMING SINCE 1992 AND ITS TRACK RECORD OF COMPETENT,

10 EVENHANDED, AND EFFICIENT DISCHARGE OF THE DUTIES ENTRUSTED TO

11 IT BY COLORADO'S VOTERS UNDER SECTION 9 OF ARTICLE XVIII OF THE

12 STATE CONSTITUTION;

13 (c) THE GENERAL ASSEMBLY INTENDS, THROUGH PASSAGE OF

14 HOUSE BILL 19-____, ENACTED IN 2019, TO INCORPORATE SPORTS

15 BETTING SEAMLESSLY INTO THE REGULATORY AND TAXING SYSTEM

16 ESTABLISHED FOR LIMITED GAMING UNDER THIS ARTICLE 30 IN A MANNER

17 THAT HONORS THE VOTERS' INTENT IN ADOPTING SECTION 9 OF ARTICLE

18 XVIII OF THE STATE CONSTITUTION AND HAS DONE SO THROUGH

19 ENACTMENT OF A REFERRED MEASURE REQUIRING STATEWIDE APPROVAL;

20 (d) IT IS APPROPRIATE, AND THE GENERAL ASSEMBLY INTENDS,

21 THAT AFTER THE INCORPORATION OF SPORTS BETTING INTO THIS ARTICLE

22 30 ON MAY 1, 2020, NO FURTHER EXPANSION OF SPORTS BETTING NOR

23 AUTHORIZATION OF ANY NEW OR EXPANDED CLASS OF LICENSEES BE MADE

24 EXCEPT WITH THE APPROVAL OF COLORADO VOTERS THROUGH

25 LEGISLATION OR CONSTITUTIONAL AMENDMENTS THAT ARE SUBMITTED TO

26 A STATEWIDE VOTE; AND

27 (e) THE SUCCESS OF SPORTS BETTING IS DEPENDENT UPON PUBLIC

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 1 CONFIDENCE AND TRUST THAT ACTIVITIES RELATED TO SPORTS BETTING

2 ARE CONDUCTED HONESTLY AND COMPETITIVELY; THAT THE RIGHTS OF

3 THE CREDITORS OF LICENSEES ARE PROTECTED; AND THAT SPORTS BETTING

4 IS FREE FROM CRIMINAL AND CORRUPTIVE ELEMENTS. PUBLIC CONFIDENCE

5 AND TRUST CAN BE MAINTAINED ONLY BY STRICT REGULATION OF SPORTS

6 BETTING.

7 SECTION 2. In Colorado Revised Statutes, 44-30-103, amend

8 (5) and (17); and add (32.5) as follows:
9 44-30-103. Definitions. As used in this article 30, unless the
10 context otherwise requires:
11 (5) "Bet" means an amount placed as a wager in a game of chance
12 OR ON A SPORTS EVENT, AS DEFINED IN SECTION 44-30-1501 (12).

13 (17) "Key employee" means any executive, employee, or agent of

14 a gaming licensee OR SPORTS BETTING LICENSEE having the power to
15 exercise a significant influence over decisions concerning any part of the
16 operation of a THE gaming licensee OR SPORTS BETTING LICENSEE.
17 (32.5) "SPORTS BETTING" MEANS PLACING ONE OR MORE BETS IN
18 A SPORTS BETTING OPERATION, AS DEFINED IN SECTION 44-30-1501 (10).

19 SECTION 3. In Colorado Revised Statutes, amend 44-30-104 as

20 follows:
21 44-30-104. Limited gaming - sports betting - authorization -
22 regulation. Limited gaming is AND SPORTS BETTING ARE hereby
23 authorized and may be operated and maintained subject to the provisions
24 of this article 30. All limited gaming AND SPORTS BETTING authorized by
25 this article 30 shall be regulated IS SUBJECT TO REGULATION by the
26 Colorado limited gaming control commission.
27 SECTION 4. In Colorado Revised Statutes, amend 44-30-201 as

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 1 follows:
2 44-30-201. Division of gaming - creation - repeal. (1) There is
3 hereby created, within the department, the division of gaming, the head
4 of which shall be IS the director of the division of gaming. The director
5 shall be IS appointed by, and shall be IS subject to removal by, the
6 executive director. The division of gaming, the Colorado limited gaming
7 control commission created in section 44-30-301, and the director of the
8 division of gaming shall exercise their respective powers and perform
9 their respective duties and functions as specified in this article 30 under
10 the department as if the same THEY were transferred to the department by
11 a type 2 transfer, as the transfer is defined in the "Administrative
12 Organization Act of 1968", article 1 of title 24; except that the
13 commission shall have HAS full and exclusive authority to promulgate
14 rules related to limited gaming AND SPORTS BETTING without any approval
15 by, or delegation of authority from, the department. NOTWITHSTANDING
16 ANY PROVISION OF THIS SUBSECTION (1) TO THE CONTRARY, SPORTS

17 BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT THE NOVEMBER

18 2019 STATEWIDE ELECTION APPROVE THE BALLOT QUESTION SUBMITTED
19 PURSUANT TO SECTION 44-30-1514, ENACTED IN 2019 IN HOUSE BILL
20 19-____.
21 (2) (a) THE COMMISSION MAY ADOPT TEMPORARY OR EMERGENCY
22 RULES, OR BOTH, AND MAY ACCEPT LICENSE APPLICATIONS, BEFORE MAY

23 1, 2020, IN ANTICIPATION OF THE AUTHORIZATION OF SPORTS BETTING

24 UNDER PART 15 OF THIS ARTICLE 30.

25 (b) THIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2020.

26 SECTION 5. In Colorado Revised Statutes, amend 44-30-202 as
27 follows:

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 1 44-30-202. Functions of division - repeal. (1) The function
2 FUNCTIONS of the division is ARE to license, implement, regulate, and
3 supervise the conduct IN THIS STATE of:
4 (a) Limited gaming in this state as authorized by section 9 of
5 article XVIII of the state constitution; AND
6 (b) (I) SPORTS BETTING AS AUTHORIZED BY PART 15 OF THIS

7 ARTICLE 30.

8 (II) THIS SUBSECTION (1)(b) IS REPEALED, EFFECTIVE SEPTEMBER

9 1, 2020, IF THE VOTERS AT THE NOVEMBER 2019 STATEWIDE ELECTION DO
10 NOT APPROVE THE QUESTION DESCRIBED IN SECTION 44-30-1514 AND THE

11 GOVERNOR ISSUES AN OFFICIAL DECLARATION OF THE VOTE THEREON.

12 (2) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

13 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

14 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

15 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

16 2019 IN HOUSE BILL 19-____.
17 SECTION 6. In Colorado Revised Statutes, 44-30-203, amend
18 (2) introductory portion, (2)(a), (2)(f), (2)(h), and (2)(k) as follows:
19 44-30-203. Director - qualification - powers and duties. (2) In
20 addition to the duties imposed upon the director elsewhere in this part 2
21 AND IN PART 15 OF THIS ARTICLE 30, the director shall:
22 (a) Supervise and administer the operation of the division, and
23 limited gaming, AND SPORTS BETTING in accordance with the provisions
24 of this article 30 and the rules of the commission;
25 (f) Advise the commission and recommend to the commission any
26 rules and other procedures as the director deems necessary and advisable
27 to improve the operation of the division and the conduct of limited

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 1 gaming OR SPORTS BETTING;
2 (h) Make a continuous study and investigation of the operation
3 and the administration of similar laws that may be in effect in other states
4 or countries; of any literature on gaming OR SPORTS BETTING that from
5 time to time may be published or available; and of any federal laws that
6 may affect the operation of the division, the conduction CONDUCT of
7 limited gaming OR SPORTS BETTING, or the reaction of Colorado citizens
8 to limited gaming OR SPORTS BETTING with a view to recommending or
9 effecting changes that would serve the purposes of this article 30;
10 (k) Take any action as may be determined by the commission to
11 be necessary to protect the security and integrity of limited gaming OR
12 SPORTS BETTING; and
13 SECTION 7. In Colorado Revised Statutes, 44-30-204, amend
14 (1) introductory portion, (1)(a), (1)(b), (1)(d), (1)(e), (1)(f), and (1)(g) as
15 follows:
16 44-30-204. Investigator - peace officers. (1) All investigators of
17 the division of gaming, and their supervisors, including the director and
18 the executive director, shall have all the powers of any peace officer to:
19 (a) Make arrests, with or without warrant, for any violation of the
20 provisions of this article 30, article 20 of title 18, or the rules promulgated
21 pursuant to this article 30, any other laws or rules pertaining to the
22 conducting CONDUCT of limited gaming OR SPORTS BETTING in this state,
23 or any criminal law of this state, if, during an officer's exercise of powers
24 or performance of duties under this section, probable cause is established
25 that a violation of any said law or rule has occurred;
26 (b) Inspect, examine, investigate, hold, or impound any premises
27 where limited gaming OR SPORTS BETTING is conducted, any devices or

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 1 equipment designed for or used in limited gaming OR SPORTS BETTING,
2 and any books and records in any way connected with any limited gaming
3 OR SPORTS BETTING activity;
4 (d) Serve all warrants, notices, summonses, or other processes
5 relating to the enforcement of laws regulating limited gaming OR SPORTS
6 BETTING;

7 (e) Serve distraint warrants issued by the department pertaining

8 to limited gaming OR SPORTS BETTING;
9 (f) Conduct investigations into the character, record, and
10 reputation of all applicants for limited gaming OR SPORTS BETTING

11 licenses, all licensees, and any other persons as the commission may
12 determine pertaining to limited gaming OR SPORTS BETTING;
13 (g) Investigate violations of all the laws pertaining to limited
14 gaming, SPORTS BETTING, and limited gaming activities RELATED TO

15 BOTH;

16 SECTION 8. In Colorado Revised Statutes, 44-30-302, amend

17 (1)(a), (1)(d), (1)(f), (1)(h), (1)(j), (1)(n)(I), (1)(p), (1)(s), (1)(u), (2)
18 introductory portion, (2)(a), (2)(b), (2)(c), (2)(d), (2)(e), (2)(f), (2)(r), and
19 (2)(s); and add (3) as follows:
20 44-30-302. Commission - powers and duties - rules. (1) In
21 addition to any other powers and duties set forth in this part 3, and
22 notwithstanding the designation of the Colorado limited gaming control
23 commission under section 44-30-201 as a type 2 transfer, the commission
24 shall nonetheless have the following powers and duties:
25 (a) To promulgate the rules governing the licensing, conducting,
26 and operating of limited gaming AND SPORTS BETTING as it deems
27 necessary to carry out the purposes of this article 30. The director shall

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 1 prepare and submit to the commission written recommendations
2 concerning proposed rules for this purpose.
3 (d) To conduct a continuous study and investigation of limited
4 gaming AND SPORTS BETTING throughout the state for the purpose of
5 ascertaining any defects in this article 30 or in the rules promulgated
6 pursuant to this article 30 in order to discover any abuses in the
7 administration and operation of the division or any violation of this article
8 30 or any rule promulgated pursuant to this article 30;
9 (f) To report immediately to the governor, the attorney general,
10 the speaker of the house of representatives, the president of the senate, the
11 minority leaders of both houses, and any other state officers as the
12 commission deems appropriate concerning any laws that it determines
13 require immediate amendment to prevent abuses and violations of this
14 article 30 or any rule promulgated pursuant to this article 30 or to remedy
15 undesirable conditions in connection with the administration or the
16 operation of the division, or limited gaming, OR SPORTS BETTING;
17 (h) To issue temporary or permanent licenses to those involved in
18 the ownership, participation, or conduct of limited gaming OR SPORTS

19 BETTING;

20 (j) To establish and collect fees and taxes upon persons, licenses,
21 and gaming devices used in, or participating in, limited gaming OR

22 SPORTS BETTING;

23 (n) (I) Except as otherwise provided in subsection (1)(n)(II) of this

24 section, to inspect and examine without notice all premises wherein IN
25 WHICH limited gaming OR SPORTS BETTING is conducted or WHERE

26 devices or equipment used in limited gaming THOSE ACTIVITIES are

27 located, manufactured, sold, or distributed, and to summarily seize,

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 1 remove, and impound, without notice or hearing, from the premises any
2 equipment, devices, supplies, books, or records for the purpose of
3 examination or inspection.
4 (p) To exercise any other incidental powers as may be necessary
5 to ensure the safe and orderly regulation of limited gaming AND SPORTS
6 BETTING and the secure collection of all revenues, taxes, and license fees;

7 (s) To establish and collect fees for performing, or having

8 performed, tests on equipment and devices to be used in limited gaming
9 OR SPORTS BETTING;

10 (u) To demand, at any time when business is being conducted,

11 access to and inspection, examination, photocopying, and auditing of all
12 papers, books, and records of applicants and licensees, on their premises
13 or elsewhere as practicable and in the presence of the licensee or his or
14 her THE LICENSEE'S agent, pertaining to the gross income produced by any
15 licensed gaming establishment and OR ACTIVITY LICENSED UNDER THIS
16 ARTICLE 30; to require verification of income, and all other matters
17 affecting the enforcement of the policies of the commission or any
18 provision of this article 30; and to impound or remove all papers, books,
19 and records of applicants and licensees, without hearing, for inspection
20 or examination; and
21 (2) Rules promulgated pursuant to subsection (1) of this section
22 shall MUST include, but shall not be limited to AT A MINIMUM, the
23 following:
24 (a) The types of limited gaming AND SPORTS BETTING activities to
25 be conducted and the rules for those activities;
26 (b) The requirements, qualifications, and grounds for the issuance,
27 revocation, suspension, and summary suspension of all types of

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 1 permanent and temporary licenses required for the conduct of limited
2 gaming OR SPORTS BETTING;
3 (c) Qualifications of persons to hold limited gaming OR SPORTS
4 BETTING licenses;
5 (d) Restrictions upon the times, places, and structures where
6 limited gaming shall be OR SPORTS BETTING ARE authorized;
7 (e) The ongoing operation of limited gaming OR SPORTS BETTING
8 activities, INCLUDING THE TESTING AND APPROVAL OF SOFTWARE OR

9 ACCOUNTING SYSTEMS USED IN CONNECTION WITH LIMITED GAMING OR

10 SPORTS BETTING;

11 (f) The scope and conditions for investigations and inspections

12 into the conduct of limited gaming OR SPORTS BETTING, the background
13 of licensees and applicants for licenses, the premises where limited
14 gaming is OR SPORTS BETTING ARE authorized, all premises where gaming
15 devices are located, the books and records of licensees, and the sources
16 and maintenance of limited gaming OR SPORTS BETTING devices and
17 equipment;
18 (r) The conditions and circumstances that constitute suitability of
19 persons, locations, and equipment for gaming OR SPORTS BETTING;
20 (s) The types and specifications of all equipment and devices used
21 in or with limited gaming OR SPORTS BETTING; and
22 (3) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
23 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

24 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

25 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

26 2019 IN HOUSE BILL 19-____.
27 SECTION 9. In Colorado Revised Statutes, 44-30-701, amend

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 1 (1)(a), (1)(b)(I), and (1)(b)(II); and add (3) as follows:
2 44-30-701. Limited gaming fund - created. (1) There is hereby
3 created in the office of the state treasurer the limited gaming fund. The
4 fund shall be maintained and operated as follows:
5 (a) EXCEPT AS SPECIFIED IN PART 15 OF THIS ARTICLE 30, all
6 revenues of the division shall be paid into the limited gaming fund.
7 EXCEPT FOR THOSE EXPENSES RELATED TO SPORTS BETTING AS SPECIFIED
8 IN PART 15 OF THIS ARTICLE 30, all expenses of the division and the
9 commission, including the expenses of investigation and prosecution
10 relating to limited gaming, shall be paid from the fund.
11 (b) (I) All money paid into the limited gaming fund shall be
12 available immediately, without further appropriation, for the purposes of
13 the fund. From the money in the limited gaming fund, the state treasurer
14 is hereby authorized to pay all ongoing expenses of the commission, the
15 department, the division, and any other state agency from whom
16 assistance related to the administration of this article 30 is requested by
17 the commission, director, or executive director, EXCEPT THOSE EXPENSES
18 RELATED TO SPORTS BETTING, AS SPECIFIED IN PART 15 OF THIS ARTICLE

19 30. The payment shall be made upon proper presentation of a voucher

20 prepared by the commission in accordance with other statutes governing
21 payments of liabilities incurred on behalf of the state. The payment shall
22 not be conditioned on any appropriation by the general assembly. Receipt
23 of the payment shall constitute spending authority by the division of
24 gaming in the department.
25 (II) EXCEPT AS SPECIFIED IN PART 15 OF THIS ARTICLE 30:
26 (A) No claim for the payment of any expense of the commission,
27 department, division, or other state agency shall be made unless it is

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 1 against the limited gaming fund; AND
2 (B) No other money of the state shall be used or obligated to pay
3 the expenses of the division or commission.
4 (3) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
5 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

6 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

7 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

8 2019 IN HOUSE BILL 19-____.
9 SECTION 10. In Colorado Revised Statutes, 44-30-705, amend
10 (3) as follows:
11 44-30-705. Attorney general - duties. (3) Expenses of the
12 attorney general incurred in the performance of the responsibilities under
13 this section shall be paid from the limited gaming fund; EXCEPT THAT ANY
14 SUCH EXPENSES RELATED TO SPORTS BETTING UNDER PART 15 OF THIS
15 ARTICLE 30 SHALL BE PAID FROM THE SPORTS BETTING FUND.

16 NOTWITHSTANDING ANY PROVISION OF THIS SUBSECTION (3) TO THE

17 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

18 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

19 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

20 2019 IN HOUSE BILL 19-____.
21 SECTION 11. In Colorado Revised Statutes, add part 15 to
22 article 30 of title 44 as follows:
23 PART 15
24 SPORTS BETTING
25 44-30-1501. Definitions - rules. DEFINITIONS APPLICABLE TO THIS
26 PART 15 ALSO APPEAR IN SECTION 44-30-103 AND ARTICLE 1 OF THIS TITLE

27 44. AS USED IN THIS PART 15, UNLESS THE CONTEXT OTHERWISE REQUIRES:

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 1 (1) "CASINO" MEANS A LICENSED GAMING ESTABLISHMENT AS

2 DEFINED IN SECTION 44-30-103 (18).

3 (2) "COLLEGIATE SPORTS EVENT" MEANS A SPORTS EVENT

4 OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR

5 PRIVATE INSTITUTION THAT OFFERS EDUCATIONAL SERVICES BEYOND THE

6 SECONDARY LEVEL.

7 (3) "FANTASY SPORTS ACTIVITY" MEANS THE CONDUCT OF, OR

8 PARTICIPATION IN, A FANTASY CONTEST AS DEFINED IN SECTION

9 12-15.5-102 (4).
10 (4) "INTERNET SPORTS BETTING OPERATION" MEANS A SPORTS

11 BETTING OPERATION IN WHICH WAGERS ON SPORTS EVENTS ARE MADE

12 THROUGH A COMPUTER OR MOBILE OR INTERACTIVE DEVICE AND

13 ACCEPTED BY AN INTERNET SPORTS BETTING OPERATOR.

14 (5) "INTERNET SPORTS BETTING OPERATOR" MEANS A PERSON

15 LICENSED BY THE COMMISSION TO OPERATE AN INTERNET SPORTS BETTING

16 OPERATION.

17 (6) "MASTER LICENSE" MEANS A SPORTS BETTING LICENSE, ISSUED

18 BY THE COMMISSION PURSUANT TO SECTION 44-30-1505 (1)(a), THAT

19 AUTHORIZES THE LICENSEE TO EITHER CONDUCT SPORTS BETTING AND

20 INTERNET SPORTS BETTING ITSELF OR CONTRACT WITH A SPORTS BETTING

21 OPERATOR, AN INTERNET SPORTS BETTING OPERATOR, OR BOTH, TO

22 CONDUCT SPORTS BETTING.

23 (7) "NET SPORTS BETTING PROCEEDS" MEANS THE TOTAL AMOUNT

24 OF ALL BETS PLACED BY PLAYERS IN A SPORTS BETTING OPERATION OR

25 INTERNET SPORTS BETTING OPERATION, EXCLUDING FREE BETS, LESS ALL

26 PAYMENTS TO PLAYERS AND LESS ALL EXCISE TAXES PAID PURSUANT TO

27 FEDERAL LAW. PAYMENTS TO PLAYERS INCLUDE ALL PAYMENTS OF CASH

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 1 PREMIUMS, MERCHANDISE, OR ANY OTHER THING OF VALUE.

2 (8) "PROHIBITED SPORTS EVENT" MEANS:

3 (a) A HIGH SCHOOL SPORTS EVENT;
4 (b) A VIDEO GAME THAT IS NOT SANCTIONED BY A SPORTS

5 GOVERNING BODY AS AN ELECTRONIC COMPETITION; AND

6 (c) ONLY WITH RESPECT TO PROPOSITION BETS, A COLLEGIATE

7 SPORTS EVENT.

8 (9) "SPORTS BETTING LICENSE" MEANS ANY OF THE LICENSES

9 SPECIFIED IN SECTION 44-30-1505 (1).

10 (10) "SPORTS BETTING OPERATION" MEANS A LICENSED WAGERING

11 OPERATION IN WHICH BETS ARE PLACED ON SPORTS EVENTS THROUGH ANY

12 SYSTEM OR METHOD OF WAGERING, INCLUDING SINGLE-GAME BETS,

13 TEASER BETS, PARLAYS, OVER-UNDER, MONEYLINE, POOLS, EXCHANGE

14 WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS OTHER

15 THAN THOSE RELATING TO COLLEGIATE SPORTS EVENTS, OR STRAIGHT

16 BETS.

17 (11) "SPORTS BETTING OPERATOR" MEANS A PERSON THAT IS

18 LICENSED TO OPERATE A SPORTS BETTING OPERATION IN WHICH

19 CUSTOMERS PLACE BETS IN PERSON AT A DESIGNATED PHYSICAL

20 LOCATION.

21 (12) (a) "SPORTS EVENT" MEANS:

22 (I) ANY INDIVIDUAL OR TEAM SPORT OR ATHLETIC EVENT IN WHICH
23 THE OUTCOME IS NOT DETERMINED SOLELY BY CHANCE, WHETHER

24 AMATEUR OR PROFESSIONAL, INCLUDING AN OLYMPIC OR INTERNATIONAL

25 SPORT OR ATHLETIC EVENT AND ANY COLLEGIATE SPORTS EVENT;

26 (II) ANY PORTION OF A SPORT OR ATHLETIC EVENT LISTED IN

27 SUBSECTION (12)(a)(I) OF THIS SECTION, INCLUDING THE INDIVIDUAL

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 1 PERFORMANCE STATISTICS OF ATHLETES IN A SPORTS EVENT OR

2 COMBINATION OF SPORTS EVENTS;

3 (III) A SANCTIONED MOTOR SPORT, AS AUTHORIZED BY THE

4 COMMISSION BY RULE; AND

5 (IV) ANY OTHER SPORTS EVENT OR COMBINATION OF SPORTS

6 EVENTS AS AUTHORIZED BY THE COMMISSION BY RULE.

7 (b) "SPORTS EVENT" DOES NOT INCLUDE A PROHIBITED SPORTS

8 EVENT OR A FANTASY SPORTS ACTIVITY.

9 (13) "SPORTS GOVERNING BODY" MEANS AN ORGANIZATION THAT

10 PERFORMS A REGULATORY OR SANCTIONING FUNCTION OVER THE

11 CONDUCT OF A SPORTS EVENT.

12 44-30-1502. Conflict of interest - participants in sports or

13 athletic events. (1) THE FOLLOWING PERSONS SHALL NOT HAVE ANY

14 OWNERSHIP INTEREST IN, CONTROL OF, OR OTHERWISE BE EMPLOYED BY

15 A SPORTS BETTING OPERATOR, A LICENSEE, OR A FACILITY IN WHICH

16 SPORTS BETTING TAKES PLACE OR PLACE A WAGER ON A SPORTS EVENT

17 THAT IS OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY BASED ON

18 PUBLICLY AVAILABLE INFORMATION:

19 (a) AN ATHLETE, COACH, REFEREE, EMPLOYEE, OR DIRECTOR OF:

20 (I) A SPORTS GOVERNING BODY THAT SANCTIONS OR GOVERNS A
21 SPORTS EVENT ON WHICH BETS ARE PLACED; OR

22 (II) ANY TEAM THAT IS A MEMBER TEAM IN A SPORTS GOVERNING

23 BODY DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION.
24 (b) A SPORTS GOVERNING BODY OR ANY OF ITS MEMBER TEAMS;
25 (c) AN AGENT, UNION, OR UNION REPRESENTATIVE THAT

26 ADVOCATES FOR PLAYERS, REFEREES, OR OTHER PERSONNEL INVOLVED

27 WITH THE CONDUCT OF A SPORTS EVENT;

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 1 (d) A PERSON WHO HOLDS A POSITION OF AUTHORITY OR

2 INFLUENCE SUFFICIENT TO EXERT INFLUENCE OVER THE PARTICIPANTS IN

3 A SPORTS EVENT, INCLUDING COACHES, MANAGERS, AND ATHLETIC

4 TRAINERS;

5 (e) A PERSON WITH ACCESS TO NONPUBLIC INFORMATION ON ANY

6 SPORTS EVENT OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY,

7 WHICH INFORMATION PERTAINS TO OR COULD AFFECT OR INFLUENCE THE

8 PERFORMANCE OF ANY TEAM, COACH, OR PARTICIPANT IN THE SPORTS

9 EVENT; OR

10 (f) A PERSON IDENTIFIED BY THE SPORTS GOVERNING BODY TO THE

11 DIVISION OR THE COMMISSION FOR PURPOSES OF ESTABLISHING ACTUAL OR

12 POTENTIAL CONFLICTS OF INTEREST.

13 (2) THE DIRECT OR INDIRECT LEGAL OR BENEFICIAL OWNER OF TEN

14 PERCENT OR MORE OF A SPORTS GOVERNING BODY OR ANY OF ITS MEMBER

15 TEAMS SHALL NOT PLACE OR ACCEPT ANY WAGER ON A SPORTS EVENT IN

16 WHICH ANY MEMBER TEAM OF THAT SPORTS GOVERNING BODY

17 PARTICIPATES.

18 (3) THE PROHIBITIONS SET FORTH IN THIS SECTION DO NOT APPLY

19 TO A SPORTS GOVERNING BODY, A MEMBER TEAM OF A SPORTS GOVERNING

20 BODY, OR A PERSON WHO IS A DIRECTOR OR A DIRECT OR INDIRECT OWNER

21 OF A SPORTS GOVERNING BODY OR MEMBER TEAM OF A SPORTS

22 GOVERNING BODY:

23 (a) WHO HOLDS LESS THAN TEN PERCENT DIRECT OR INDIRECT

24 OWNERSHIP INTEREST IN A CASINO OR SPORTS BETTING OPERATION; OR

25 (b) WHOSE SPORTS BETTING OPERATION PROHIBITS ANY WAGERING

26 ON THE OWNER'S TEAM OR PLAYERS OR THE SPORTS GOVERNING BODY'S

27 SPORTS EVENTS.

-17- HB19-1327
 1 44-30-1503. Licenses - rules. (1) (a) THE COMMISSION SHALL
2 ISSUE, SUSPEND, REVOKE, AND RENEW SPORTS BETTING LICENSES

3 PURSUANT TO SUBSECTION (3) OF THIS SECTION AND RULES ADOPTED BY

4 THE COMMISSION. THE COMMISSION'S LICENSING RULES MUST INCLUDE

5 REQUIREMENTS RELATING TO THE FINANCIAL RESPONSIBILITY OF THE

6 LICENSEE, THE LICENSEE'S SOURCE OF REVENUE FOR ITS SPORTS BETTING

7 OPERATIONS, THE CHARACTER OF THE LICENSEE, THE TRUSTWORTHY

8 OPERATION OF THE SPORTS BETTING ACTIVITY SOUGHT TO BE LICENSED,

9 AND OTHER MATTERS NECESSARY TO PROTECT THE PUBLIC INTEREST AND

10 TRUST IN SPORTS BETTING. SUSPENSION IS LIMITED TO CIRCUMSTANCES IN

11 WHICH THE LICENSEE'S ACTIONS APPEAR CONTRARY TO THE PUBLIC

12 INTEREST OR TEND TO UNDERMINE PUBLIC TRUST IN THE INTEGRITY OF

13 SPORTS BETTING.

14 (b) THE COMMISSION'S RULES MUST REQUIRE THAT LICENSES BE

15 PROMINENTLY DISPLAYED IN AREAS VISIBLE TO THE PUBLIC.

16 (2) (a) A LICENSE SHALL BE REVOKED UPON A FINDING THAT THE

17 LICENSEE HAS:

18 (I) PROVIDED MISLEADING INFORMATION TO THE DIVISION OR

19 COMMISSION;

20 (II) BEEN CONVICTED OF A FELONY OR ANY GAMBLING-RELATED

21 OFFENSE;

22 (III) BECOME A PERSON WHOSE CHARACTER IS NO LONGER

23 CONSISTENT WITH THE PROTECTION OF THE PUBLIC INTEREST AND TRUST

24 IN SPORTS BETTING; OR

25 (IV) INTENTIONALLY REFUSED TO PAY A PRIZE IN THE LICENSEE'S

26 POSSESSION TO A PERSON ENTITLED TO RECEIVE THE PRIZE UNDER THIS

27 PART 15.

-18- HB19-1327
 1 (b) A LICENSE MAY BE SUSPENDED, REVOKED, OR NOT RENEWED
2 FOR ANY OF THE FOLLOWING CAUSES:

3 (I) A DELINQUENCY IN REMITTING MONEY RIGHTFULLY OWED TO

4 PLAYERS, CONTRACTORS, OR OTHERS INVOLVED IN SPORTS BETTING;

5 (II) FAILURE TO ENSURE THE TRUSTWORTHY OPERATION OF SPORTS

6 BETTING; OR

7 (III) ANY INTENTIONAL VIOLATION OF THIS PART 15 OR ANY RULE

8 ADOPTED PURSUANT TO THIS PART 15.

9 (3) PROCEDURES FOR ISSUANCE, SUSPENSION, REVOCATION, AND

10 RENEWAL OF LICENSES MUST BE IN ACCORDANCE WITH ARTICLE 4 OF TITLE

11 24, AND THE COMMISSION HAS ALL THE POWERS AND IS SUBJECT TO ALL
12 THE REQUIREMENTS OF ARTICLE 4 OF TITLE 24 IN CONDUCTING ANY

13 HEARINGS RELATING TO GRANTING, SUSPENDING, REVOKING, OR

14 RENEWING LICENSES.

15 (4) LICENSEES MAY INCLUDE INDIVIDUALS, FIRMS, ASSOCIATIONS,

16 OR CORPORATIONS, WHETHER FOR PROFIT OR NONPROFIT, BUT THE

17 FOLLOWING ARE INELIGIBLE FOR A LICENSE UNDER THIS PART 15:

18 (a) A PERSON WHO HAS BEEN CONVICTED OF A

19 GAMBLING-RELATED OFFENSE, NOTWITHSTANDING SECTION 24-5-101;

20 (b) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR

21 GAMBLING PROMOTER;

22 (c) A PERSON WHO HAS ENGAGED IN BOOKMAKING OR ANY OTHER

23 FORM OF ILLEGAL GAMBLING, INCLUDING ANY SPORTS BETTING OPERATION

24 WHOSE WAGERING ACTIVITIES DID NOT RESULT IN PROSECUTION BUT THAT

25 THE COMMISSION FINDS VIOLATED STATE OR FEDERAL LAW;

26 (d) A PERSON WHO IS NOT OF GOOD CHARACTER AND REPUTATION,

27 NOTWITHSTANDING SECTION 24-5-101, IN THE COMMUNITY WHERE THE

-19- HB19-1327
 1 PERSON RESIDES;

2 (e) A PERSON WHO HAS BEEN CONVICTED OF A CRIME INVOLVING

3 MISREPRESENTATION, NOTWITHSTANDING SECTION 24-5-101;

4 (f) A FIRM OR CORPORATION IN WHICH A PERSON DESCRIBED IN

5 SUBSECTIONS (4)(b) TO (4)(e) OF THIS SECTION HAS A PROPRIETARY,

6 EQUITABLE, OR CREDIT INTEREST OF TEN PERCENT OR MORE;

7 (g) AN ORGANIZATION IN WHICH A PERSON DESCRIBED IN

8 SUBSECTIONS (4)(b) TO (4)(e) OF THIS SECTION IS AN OFFICER, DIRECTOR,

9 OR MANAGING AGENT, WHETHER COMPENSATED OR NOT; OR

10 (h) AN ORGANIZATION IN WHICH A PERSON DESCRIBED IN

11 SUBSECTIONS (4)(b) TO (4)(e) OF THIS SECTION IS TO PARTICIPATE IN THE

12 MANAGEMENT OR PROMOTION OF SPORTS BETTING.

13 (5) IN ADDITION TO THE PERSONS SPECIFIED IN SUBSECTION (4) OF

14 THIS SECTION AS INELIGIBLE FOR A LICENSE, THE COMMISSION MAY

15 DETERMINE THE FOLLOWING TO BE INELIGIBLE FOR A LICENSE UNDER THIS

16 PART 15:

17 (a) A PERSON WHO HAS BEEN CONVICTED OF A FELONY OR A CRIME

18 INVOLVING FRAUD, NOTWITHSTANDING SECTION 24-5-101;

19 (b) A FIRM OR CORPORATION IN WHICH A PERSON DESCRIBED IN

20 SUBSECTION (5)(a) OF THIS SECTION HAS A PROPRIETARY, EQUITABLE, OR

21 CREDIT INTEREST OF TEN PERCENT OR MORE;

22 (c) AN ORGANIZATION IN WHICH A PERSON DESCRIBED IN

23 SUBSECTION (5)(a) OF THIS SECTION IS AN OFFICER, DIRECTOR, OR

24 MANAGING AGENT, WHETHER COMPENSATED OR NOT; OR

25 (d) AN ORGANIZATION IN WHICH A PERSON DESCRIBED IN

26 SUBSECTION (5)(a) OF THIS SECTION IS TO PARTICIPATE IN THE

27 MANAGEMENT OR PROMOTION OF SPORTS BETTING.

-20- HB19-1327
 1 (6) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE
2 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

3 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

4 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

5 2019 IN HOUSE BILL 19-____.
6 44-30-1504. Disclosure of information by corporate applicants
7 - license required - investigation - criminal history record check -
8 rules - definition. (1) CORPORATE APPLICANTS FOR A SPORTS BETTING
9 LICENSE AND LICENSEES SHALL DISCLOSE TO THE COMMISSION, IN A FORM

10 AND MANNER DETERMINED BY THE COMMISSION, THE IDENTITY OF:

11 (a) EACH BOARD-APPOINTED OFFICER OF THE APPLICANT OR

12 LICENSEE;

13 (b) EACH DIRECTOR OF THE APPLICANT OR LICENSEE;

14 (c) EACH PERSON WHO DIRECTLY HOLDS ANY VOTING OR

15 CONTROLLING INTEREST OF TEN PERCENT OR MORE, IN THE CASE OF A

16 SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS BETTING

17 OPERATOR LICENSE, OR OF ANY PERCENTAGE, IN THE CASE OF A MASTER

18 LICENSE, OF THE SECURITIES ISSUED BY THE APPLICANT OR LICENSEE;

19 (d) EACH PERSON WHO DIRECTLY HOLDS ANY NONVOTING OR

20 PASSIVE OWNERSHIP INTEREST OF TWENTY-FIVE PERCENT OR MORE OF THE

21 SECURITIES ISSUED BY THE APPLICANT OR LICENSEE;

22 (e) EACH HOLDING, INTERMEDIARY, OR SUBSIDIARY COMPANY OF

23 THE APPLICANT OR LICENSEE; AND

24 (f) EACH LENDER FROM WHICH THE APPLICANT OR LICENSEE

25 CURRENTLY HAS AN OUTSTANDING LOAN.

26 (2) AS TO EACH HOLDING, INTERMEDIARY, OR SUBSIDIARY

27 COMPANY OF AN APPLICANT FOR A SPORTS BETTING LICENSE OR A

-21- HB19-1327
 1 LICENSEE, THE APPLICANT OR LICENSEE SHALL ESTABLISH AND MAINTAIN

2 THE QUALIFICATIONS OF:

3 (a) EACH BOARD-APPOINTED OFFICER OF THE HOLDING,

4 INTERMEDIARY, OR SUBSIDIARY COMPANY;

5 (b) EACH DIRECTOR OF THE HOLDING, INTERMEDIARY, OR

6 SUBSIDIARY COMPANY;

7 (c) EACH PERSON WHO DIRECTLY HOLDS ANY VOTING OR

8 CONTROLLING INTEREST OF TEN PERCENT OR MORE, IN THE CASE OF A

9 SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS BETTING

10 OPERATOR LICENSE, OR OF ANY PERCENTAGE, IN THE CASE OF A MASTER

11 LICENSE, OF THE SECURITIES ISSUED BY THE HOLDING, INTERMEDIARY, OR

12 SUBSIDIARY COMPANY;

13 (d) EACH PERSON WHO DIRECTLY HOLDS ANY NONVOTING OR

14 PASSIVE OWNERSHIP INTEREST OF TWENTY-FIVE PERCENT OR MORE IN THE

15 HOLDING, INTERMEDIARY, OR SUBSIDIARY COMPANY; AND

16 (e) EACH LENDER FROM WHICH THE HOLDING, INTERMEDIARY, OR

17 SUBSIDIARY COMPANY CURRENTLY HAS AN OUTSTANDING LOAN.

18 (3) THE COMMISSION OR THE DIVISION MAY WAIVE ANY OR ALL OF

19 THE QUALIFICATION REQUIREMENTS FOR ANY PERSON LISTED IN

20 SUBSECTION (1) OR (2) OF THIS SECTION.

21 (4) ALL PERSONS EMPLOYED DIRECTLY IN GAMBLING-RELATED

22 ACTIVITIES CONDUCTED BY A LICENSEE OR APPLICANT FOR A SPORTS

23 BETTING LICENSE, WHETHER IN A CASINO, IN A SPORTS BETTING OPERATION

24 OR INTERNET SPORTS BETTING OPERATION, OR IN ANY OTHER CAPACITY,

25 MUST BE LICENSED UNDER THIS PART 15. OTHER EMPLOYEES OF A

26 LICENSEE MAY BE REQUIRED TO HOLD SUPPORT LICENSES, IF APPROPRIATE,

27 IN ACCORDANCE WITH RULES OF THE COMMISSION PROMULGATED IN

-22- HB19-1327
 1 CONSULTATION WITH THE DIVISION.

2 (5) A MASTER LICENSEE SHALL DESIGNATE ONE OR MORE KEY

3 EMPLOYEES TO BE RESPONSIBLE FOR THE OPERATION OF THE SPORTS

4 BETTING OPERATION. AT LEAST ONE SUCH KEY EMPLOYEE SHALL BE ON

5 THE PREMISES WHENEVER SPORTS BETTING IS CONDUCTED.

6 (6) THE APPLICANT FOR A SPORTS BETTING LICENSE MUST SUBMIT

7 TO AND PAY THE COSTS OF ANY INVESTIGATION INTO THE BACKGROUND OF

8 AN APPLICANT. THE DIVISION MAY CONDUCT THE INVESTIGATION

9 PURSUANT TO SECTION 44-30-204.

10 (7) (a) EACH APPLICANT FOR A SPORTS BETTING LICENSE, WITH THE
11 SUBMISSION OF THE APPLICATION, SHALL SUBMIT A SET OF FINGERPRINTS

12 TO THE DIVISION. THE DIVISION SHALL FORWARD THE FINGERPRINTS TO

13 THE COLORADO BUREAU OF INVESTIGATION FOR THE PURPOSE OF

14 CONDUCTING A STATE AND NATIONAL FINGERPRINT-BASED CRIMINAL

15 HISTORY RECORD CHECK UTILIZING RECORDS OF THE COLORADO BUREAU

16 OF INVESTIGATION AND THE FEDERAL BUREAU OF INVESTIGATION. ONLY

17 THE ACTUAL COSTS OF THE RECORD CHECK SHALL BE BORNE BY THE

18 APPLICANT. NOTHING IN THIS SUBSECTION (7) PRECLUDES THE DIVISION

19 FROM MAKING FURTHER INQUIRIES INTO THE BACKGROUND OF THE

20 APPLICANT.

21 (b) FOR PURPOSES OF THIS SUBSECTION (7), "APPLICANT" MEANS

22 AN INDIVIDUAL OR EACH OFFICER OR DIRECTOR OF A FIRM, ASSOCIATION,

23 OR CORPORATION THAT IS APPLYING FOR A SPORTS BETTING LICENSE

24 PURSUANT TO THIS SECTION.

25 (8) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

26 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

27 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

-23- HB19-1327
 1 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN
2 2019 IN HOUSE BILL 19-____.
3 44-30-1505. License classifications - number of licenses -
4 designated sports betting operators - qualifications - rules. (1) THE
5 COMMISSION SHALL ISSUE AT LEAST THE FOLLOWING THREE

6 CLASSIFICATIONS OF SPORTS BETTING LICENSES IN ADDITION TO ANY

7 LICENSE CLASSIFICATIONS THE COMMISSION CHOOSES TO AUTHORIZE IN

8 ACCORDANCE WITH SECTION 44-30-1504 (4):

9 (a) MASTER LICENSE;

10 (b) SPORTS BETTING OPERATOR; AND
11 (c) INTERNET SPORTS BETTING OPERATOR.
12 (2) (a) (I) THE COMMISSION MAY ISSUE A MASTER LICENSE, UPON
13 THE APPLICANT'S PAYMENT OF ANY REQUIRED FEES AND COMPLIANCE

14 WITH ALL OTHER REQUIREMENTS OF THIS PART 15, TO A PERSON THAT:

15 (A) HOLDS AND, ON OR BEFORE MAY 1, 2020, HELD A RETAIL

16 GAMING LICENSE AS DESCRIBED IN SECTION 44-30-501 (1)(c); OR

17 (B) HAS OBTAINED A RETAIL GAMING LICENSE THROUGH THE

18 PURCHASE, APPROVED BY THE COMMISSION, OF AN OWNERSHIP INTEREST

19 IN ONE OR MORE CASINOS THAT WERE OPERATING ON MAY 1, 2020. EACH

20 OWNER OF AN INTEREST SO ACQUIRED, OR, IN THE CASE OF MULTIPLE

21 OWNERS OR ENTITIES, THE REPRESENTATIVE ENTITY FOR THE OWNERS OR

22 ENTITIES, IS NOT ELIGIBLE FOR MORE THAN ONE MASTER LICENSE.

23 (II) THE PURCHASE OF AN EXISTING OWNERSHIP INTEREST IN A

24 CASINO REQUIRING THE ISSUANCE OF A NEW RETAIL GAMING LICENSE DOES

25 NOT PROHIBIT THE TRANSFER OF AN EXISTING MASTER LICENSE WITH THE

26 OWNERSHIP INTEREST.

27 (III) A MASTER LICENSEE IS REQUIRED TO CONDUCT SPORTS

-24- HB19-1327
 1 BETTING ON ITS PREMISES IN ACCORDANCE WITH THIS PART 15.

2 (IV) A MASTER LICENSE EXPIRES TWO YEARS AFTER THE DATE OF

3 ISSUANCE.

4 (b) (I) A SPORTS BETTING OPERATOR LICENSE OR INTERNET SPORTS

5 BETTING OPERATOR LICENSE ENTITLES THE LICENSEE TO CONTRACT WITH

6 A MASTER LICENSEE FOR THE PURPOSE OF OPERATING A SPORTS BETTING

7 OPERATION OR INTERNET SPORTS BETTING OPERATION, AS APPLICABLE.

8 EACH MASTER LICENSEE SHALL CONTRACT WITH NO MORE THAN ONE

9 SPORTS BETTING OPERATOR AND ONE INTERNET SPORTS BETTING

10 OPERATOR AT THE SAME TIME. A MASTER LICENSEE MAY CONTRACT WITH

11 THE SAME ENTITY TO PROVIDE THE SERVICES OF A SPORTS BETTING

12 OPERATOR AND AN INTERNET SPORTS BETTING OPERATOR.

13 (II) AN INTERNET SPORTS BETTING OPERATOR MAY PROVIDE ONLY

14 ONE INDIVIDUALLY BRANDED WEBSITE, WHICH MAY HAVE AN

15 ACCOMPANYING MOBILE APPLICATION THAT MUST BEAR THE SAME UNIQUE

16 BRAND AS THE WEBSITE FOR AN INTERNET SPORTS BETTING OPERATION.

17 AN INTERNET SPORTS BETTING OPERATION SHALL NOT BE OPENED TO THE

18 PUBLIC, AND, EXCEPT FOR TEST PURPOSES, SPORTS BETTING SHALL NOT BE

19 CONDUCTED IN THE INTERNET SPORTS BETTING OPERATION UNTIL THE

20 INTERNET SPORTS BETTING OPERATOR RECEIVES ITS LICENSE AND THE

21 COMMISSION APPROVES ITS CONTRACT WITH THE MASTER LICENSEE IN

22 ACCORDANCE WITH SUBSECTION (3) OF THIS SECTION.

23 (c) A PERSON MAY HOLD BOTH A SPORTS BETTING OPERATOR

24 LICENSE AND AN INTERNET SPORTS BETTING OPERATOR LICENSE. THE

25 COMMISSION SHALL DETERMINE BY RULE THE DISTINCTIONS AND SPECIFIC

26 QUALIFICATIONS APPLICABLE TO THESE LICENSES , INCLUDING

27 QUALIFICATIONS AS TO THE TIME, PLACE, AND MANNER OF ACCEPTING

-25- HB19-1327
 1 WAGERS AND OF VERIFYING THE IDENTITY OF PERSONS SEEKING TO PLACE

2 WAGERS.

3 (3) A CONTRACT BETWEEN TWO OR MORE LICENSEES LISTED IN

4 SUBSECTION (1) OF THIS SECTION MUST BE SUBMITTED IN ADVANCE TO,
5 AND IS SUBJECT TO APPROVAL BY, THE DIVISION IN ACCORDANCE WITH

6 RULES OF THE COMMISSION.

7 (4) THE FEE FOR ISSUANCE OR RENEWAL OF A LICENSE LISTED IN

8 SUBSECTION (1) OF THIS SECTION IS AS SPECIFIED BY THE COMMISSION BY

9 RULE IN AN AMOUNT SUFFICIENT TO RECOVER THE COMMISSION'S DIRECT

10 AND INDIRECT COSTS OF PROCESSING THE APPLICATION AND CONDUCTING

11 BACKGROUND INVESTIGATIONS, NOT TO EXCEED ONE HUNDRED

12 TWENTY-FIVE THOUSAND DOLLARS.

13 (5) (a) A SPORTS BETTING OPERATION OTHER THAN AN INTERNET

14 SPORTS BETTING OPERATION MUST BE OPERATED IN A DESIGNATED AREA

15 WITHIN A CASINO, SUBJECT TO ALL REQUIREMENTS CONCERNING DESIGN,

16 EQUIPMENT, SECURITY MEASURES, AND RELATED MATTERS ESTABLISHED

17 BY THE COMMISSION BY RULE, AND MAY OFFER SPORTS BETTING ON ANY

18 SPORTS EVENT AUTHORIZED UNDER RULES OF THE COMMISSION.

19 (b) ALL SPORTS BETTING LICENSES MUST SPECIFY THE PORTION OF

20 THE LICENSEE'S PREMISES LOCATED WITHIN THE CITY OF CENTRAL, THE
21 CITY OF BLACK HAWK, OR THE CITY OF CRIPPLE CREEK WHERE SPORTS
22 BETTING WILL TAKE PLACE. THE COMMISSION SHALL NOT REQUIRE SPORTS

23 BETTING TO BE CONDUCTED WITHIN A CASINO'S DESIGNATED GAMING

24 AREA AS AUTHORIZED BY THE COMMISSION BY RULE, BUT ANY SPORTS

25 BETTING CONDUCTED OUTSIDE OF A CASINO'S DESIGNATED GAMING AREA

26 MUST BE CONDUCTED ONLY BY A LICENSED INTERNET SPORTS BETTING

27 OPERATOR, AND BETS MUST BE PLACED ONLY THROUGH A CUSTOMER'S

-26- HB19-1327
 1 OWN COMPUTER OR MOBILE OR INTERACTIVE DEVICE.

2 (c) A CASINO'S SUPPORT SERVICES FOR SPORTS BETTING,

3 INCLUDING DATA AGGREGATION, RISK MANAGEMENT, COMPUTER

4 SERVICES, SETTING OF ODDS, AND BANKING MAY BE SITED OUTSIDE OF A

5 CASINO'S DESIGNATED GAMING AREA.

6 (d) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE

7 30, SPORTS BETTING SHALL NOT BE CONDUCTED ANYWHERE IN THE CITY
8 OF CENTRAL, THE CITY OF BLACK HAWK, OR THE CITY OF CRIPPLE CREEK

9 UNLESS SPORTS BETTING IS AUTHORIZED BY THE LOCAL VOTERS OF THE

10 RESPECTIVE CITY IN A MUNICIPAL OR COORDINATED ELECTION HELD IN

11 NOVEMBER 2019, CONCURRENTLY WITH THE STATEWIDE ELECTION

12 DESCRIBED IN SECTION 44-30-1514.

13 (6) EACH LICENSEE SHALL KEEP A COMPLETE SET OF BOOKS OF

14 ACCOUNT, CORRESPONDENCE, AND ALL OTHER RECORDS NECESSARY TO

15 FULLY SHOW THE SPORTS BETTING TRANSACTIONS OF THE LICENSEE, ALL

16 OF WHICH MUST BE OPEN AT ALL TIMES DURING BUSINESS HOURS FOR

17 INSPECTION AND EXAMINATION BY THE DIVISION OR ITS DULY AUTHORIZED

18 REPRESENTATIVES. THE DIVISION MAY REQUIRE ANY LICENSEE TO FURNISH

19 THE INFORMATION THAT THE DIVISION CONSIDERS NECESSARY FOR THE

20 PROPER ADMINISTRATION OF THIS PART 15 AND MAY REQUIRE AN AUDIT TO

21 BE MADE OF THE BOOKS OF ACCOUNT AND RECORDS WHEN THE DIVISION

22 CONSIDERS IT NECESSARY BY AN AUDITOR, SELECTED BY THE DIRECTOR,

23 WHO SHALL LIKEWISE HAVE ACCESS TO ALL THE BOOKS AND RECORDS OF

24 THE LICENSEE, AND THE LICENSEE MAY BE REQUIRED TO PAY THE EXPENSE

25 OF THE AUDIT.

26 (7) A SPORTS GOVERNING BODY MAY PETITION THE COMMISSION

27 TO RESTRICT, LIMIT, OR EXCLUDE A TYPE OF WAGER THE OUTCOME OF

-27- HB19-1327
1 WHICH IS SOLELY DETERMINED BY THE ACTIONS OF A SINGLE PLAYER.

2 UPON RECEIVING SUCH A PETITION, THE COMMISSION SHALL REVIEW THE

3 REQUEST IN GOOD FAITH, SEEK INPUT FROM THE SPORTS BETTING

4 OPERATORS ON THE PETITION, AND, IF THE COMMISSION DEEMS IT

5 APPROPRIATE, ADOPT RULES TO RESTRICT, LIMIT, OR EXCLUDE THAT TYPE

6 OF WAGER.

7 (8) NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE

8 CONTRARY, SPORTS BETTING IS NOT AUTHORIZED UNLESS THE VOTERS AT

9 THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE BALLOT

10 QUESTION SUBMITTED PURSUANT TO SECTION 44-30-1514, ENACTED IN

11 2019 IN HOUSE BILL 19-____.
12 44-30-1506. Operations - eligibility to place bets -
13 record-keeping - information sharing. (1) A PERSON MUST BE AT LEAST
14 TWENTY-ONE YEARS OF AGE TO PLACE A BET.

15 (2) (a) A SPORTS BETTING OPERATOR SHALL ADOPT PROCEDURES

16 TO PREVENT PERSONS WHO ARE PROHIBITED FROM WAGERING ON SPORTS

17 EVENTS FROM DOING SO.

18 (b) A SPORTS BETTING OPERATOR SHALL NOT ACCEPT A BET FROM

19 ANY PERSON WHOSE IDENTITY IS KNOWN TO THE SPORTS BETTING

20 OPERATOR AND:

21 (I) WHOSE NAME APPEARS ON THE EXCLUSION LIST MAINTAINED

22 BY THE MASTER LICENSEE WITH WHOM THE SPORTS BETTING OPERATOR

23 HAS A CONTRACTUAL RELATIONSHIP; EXCEPT THAT A PERSON MAY NOT

24 INVALIDATE OR RETRACT A BET ALREADY PLACED AT THE TIME THE

25 PERSON'S NAME IS PLACED ON THE EXCLUSION LIST;

26 (II) WHO IS THE SPORTS BETTING OPERATOR, A DIRECTOR, OFFICER,

27 OWNER, OR EMPLOYEE OF THE SPORTS BETTING OPERATOR, OR ANY

-28- HB19-1327
 1 RELATIVE OF THE SPORTS BETTING OPERATOR LIVING IN THE SAME

2 HOUSEHOLD AS THE SPORTS BETTING OPERATOR;

3 (III) WHO HAS ACCESS TO NONPUBLIC, CONFIDENTIAL

4 INFORMATION HELD BY THE SPORTS BETTING OPERATOR; OR

5 (IV) WHO IS AN AGENT OR PROXY FOR ANY OTHER PERSON FOR

6 THE PURPOSE OF PLACING THE BET.

7 (3) A SPORTS BETTING OPERATOR SHALL ESTABLISH OR DISPLAY

8 THE ODDS AT WHICH WAGERS MAY BE PLACED ON SPORTS EVENTS.

9 (4) A SPORTS BETTING OPERATOR SHALL ADOPT PROCEDURES TO

10 OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL

11 WHO PLACES ANY SINGLE BET IN AN AMOUNT OF TEN THOUSAND DOLLARS

12 OR MORE ON A SPORTS EVENT WHILE PHYSICALLY PRESENT IN A CASINO,

13 AND ALL DISCLOSURE AND REPORTING REQUIREMENTS OTHERWISE

14 APPLICABLE TO WAGERS UNDER THIS ARTICLE 30 APPLY TO THE CONDUCT

15 OF SPORTS BETTING UNDER THIS PART 15.

16 (5) (a) A SPORTS BETTING OPERATOR SHALL PROMPTLY REPORT TO

17 THE DIVISION:

18 (I) ANY CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED

19 AGAINST THE SPORTS BETTING OPERATOR OR ITS EMPLOYEES IN

20 CONNECTION WITH THE OPERATIONS OF THE SPORTS BETTING OPERATION

21 OR INTERNET SPORTS BETTING OPERATION;

22 (II) ANY ABNORMAL BETTING ACTIVITY OR DISCERNIBLE PATTERNS

23 THAT MAY INDICATE A CONCERN ABOUT THE INTEGRITY OF A SPORTS

24 EVENT OR EVENTS;

25 (III) ANY OTHER CONDUCT WITH THE POTENTIAL TO CORRUPT A

26 BETTING OUTCOME OF A SPORTS EVENT FOR PURPOSES OF FINANCIAL GAIN,

27 INCLUDING MATCH FIXING OR THE USE OF MATERIAL, NONPUBLIC

-29- HB19-1327
 1 INFORMATION TO PLACE BETS OR FACILITATE ANOTHER PERSON'S SPORTS

2 BETTING ACTIVITY; AND

3 (IV) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING

4 THE USE OF FUNDS DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO

5 CONCEAL OR LAUNDER FUNDS DERIVED FROM ILLEGAL ACTIVITY, USE OF

6 AGENTS TO PLACE BETS, OR USE OF FALSE IDENTIFICATION.

7 (b) IN ADDITION TO REPORTING TO THE DIVISION AS REQUIRED BY

8 SUBSECTION (5)(a) OF THIS SECTION, A SPORTS BETTING OPERATOR SHALL

9 MAINTAIN RECORDS OF ALL BETS PLACED, INCLUDING PERSONALLY

10 IDENTIFIABLE INFORMATION OF THE BETTOR WHEN AVAILABLE, AMOUNT

11 AND TYPE OF BET, TIME THE BET WAS PLACED, LOCATION OF THE BET,

12 INCLUDING INTERNET PROTOCOL ADDRESS IF APPLICABLE, THE OUTCOME

13 OF THE BET, AND RECORDS OF ABNORMAL BETTING ACTIVITY. A SPORTS

14 BETTING OPERATOR SHALL MAINTAIN THESE RECORDS FOR AT LEAST

15 THREE YEARS AFTER THE SPORTS EVENT OCCURS AND SHALL MAKE THE

16 RECORDS AVAILABLE FOR INSPECTION UPON REQUEST OF THE DIVISION OR

17 AS REQUIRED BY COURT ORDER.

18 (c) THE DIVISION SHALL, GIVEN GOOD AND SUFFICIENT REASON,

19 COOPERATE WITH A SPORTS GOVERNING BODY AND SPORTS BETTING

20 OPERATORS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING

21 OF INFORMATION FOR THE SOLE PURPOSE OF ENSURING THE INTEGRITY OF

22 THEIR SPORT.

23 (d) THE DIVISION AND SPORTS BETTING OPERATORS SHALL, GIVEN

24 GOOD AND SUFFICIENT REASON, COOPERATE WITH INVESTIGATIONS

25 CONDUCTED BY SPORTS GOVERNING BODIES AND SHALL COOPERATE WITH

26 LAW ENFORCEMENT AGENCIES, INCLUDING PROVIDING OR FACILITATING

27 THE PROVISION OF ACCOUNT-LEVEL BETTING INFORMATION AND ANY

-30- HB19-1327
1 AVAILABLE AUDIO OR VIDEO FILES RELATING TO PERSONS PLACING BETS.

2 (e) THE DIVISION MAY SHARE ANY INFORMATION OBTAINED UNDER

3 THIS SECTION WITH ANY LAW ENFORCEMENT ENTITY, TEAM, SPORTS

4 GOVERNING BODY, OR REGULATORY AGENCY THAT REQUESTS

5 INFORMATION FROM THE DIVISION IN CONNECTION WITH AN

6 INVESTIGATION CONDUCTED BY THAT ENTITY, TEAM, SPORTS GOVERNING

7 BODY, OR REGULATORY AGENCY. THE DIVISION MAY REDACT OR

8 AGGREGATE INFORMATION TO PROTECT THE PRIVACY OF PERSONS WHO

9 ARE NOT SUBJECTS OR TARGETS OF THE INVESTIGATION.

10 (6) ALL BETS AUTHORIZED UNDER THIS PART 15 MUST BE

11 INITIATED, RECEIVED, AND OTHERWISE MADE WITHIN COLORADO UNLESS

12 OTHERWISE DETERMINED BY THE DIVISION IN ACCORDANCE WITH

13 APPLICABLE FEDERAL AND STATE LAWS. CONSISTENT WITH THE INTENT OF

14 THE UNITED STATES CONGRESS AS ARTICULATED IN THE FEDERAL

15 "UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT OF 2006", 31

16 U.S.C. SEC. 5361-5367, THE INTERMEDIATE ROUTING OF ELECTRONIC

17 DATA RELATING TO A LAWFUL INTRASTATE WAGER AUTHORIZED UNDER

18 THIS PROVISION DOES NOT DETERMINE THE LOCATION OR LOCATIONS IN

19 WHICH THE WAGER IS INITIATED, RECEIVED, OR OTHERWISE MADE.

20 (7) EACH SPORTS BETTING OPERATOR MAY SET SUCH BET LIMITS
21 AS IT SEES FIT, IN ITS SOLE DISCRETION, AND MAY MAKE THOSE LIMITS

22 SPECIFIC TO A FORM OR CLASS OF SPORTS BETTING, A SPECIFIC SPORTS

23 EVENT, OR A PERSON PLACING A BET, BASED ON INDIVIDUAL OR

24 AGGREGATE DATA CONCERNING BETS TO BE PLACED OR THAT HAVE BEEN

25 PLACED HISTORICALLY BY THAT INDIVIDUAL OR ON THAT FORM OR CLASS

26 OF SPORTS BETTING OR ON THAT SPORTS EVENT.

27 (8) AN INTERNET SPORTS BETTING OPERATOR SHALL ACCEPT BETS

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 1 ONLY FROM PERSONS PHYSICALLY LOCATED WITHIN THE STATE OF

2 COLORADO. AN INTERNET SPORTS BETTING OPERATOR MAY ESTABLISH

3 AND FUND SPORTS WAGERING ACCOUNTS ELECTRONICALLY THROUGH

4 COMMISSION-APPROVED MOBILE APPLICATIONS AND DIGITAL PLATFORMS.

5 44-30-1507. Records - confidentiality - exceptions. (1) EXCEPT

6 AS SPECIFIED IN SUBSECTIONS (2) AND (3) OF THIS SECTION, INFORMATION

7 AND RECORDS OF THE COMMISSION ENUMERATED BY THIS SECTION ARE

8 CONFIDENTIAL AND MAY NOT BE DISCLOSED EXCEPT PURSUANT TO A

9 COURT ORDER. NO PERSON MAY BY SUBPOENA, DISCOVERY, OR

10 STATUTORY AUTHORITY OBTAIN SUCH INFORMATION OR RECORDS.

11 INFORMATION AND RECORDS CONSIDERED CONFIDENTIAL INCLUDE:

12 (a) TAX RETURNS OF INDIVIDUAL LICENSEES;
13 (b) CREDIT REPORTS AND SECURITY REPORTS AND PROCEDURES OF
14 APPLICANTS AND OTHER PERSONS SEEKING TO DO BUSINESS OR DOING

15 BUSINESS WITH THE COMMISSION;

16 (c) AUDIT WORK PAPERS, WORKSHEETS, AND AUDITING

17 PROCEDURES USED BY THE COMMISSION, ITS AGENTS, OR EMPLOYEES; AND

18 (d) INVESTIGATIVE REPORTS CONCERNING VIOLATIONS OF LAW OR

19 CONCERNING THE BACKGROUNDS OF LICENSEES, APPLICANTS, OR OTHER

20 PERSONS PREPARED BY DIVISION INVESTIGATORS OR INVESTIGATORS FROM

21 OTHER AGENCIES WORKING WITH THE COMMISSION AND ANY WORK PAPERS

22 RELATED TO THE REPORTS; EXCEPT THAT THE COMMISSION MAY, IN ITS

23 SOLE DISCRETION, DISCLOSE SO MUCH OF THE REPORTS OR WORK PAPERS

24 AS IT DEEMS NECESSARY AND PRUDENT.

25 (2) SUBSECTION (1) OF THIS SECTION DOES NOT APPLY TO

26 REQUESTS FOR INFORMATION OR RECORDS DESCRIBED IN SUBSECTION (1)

27 OF THIS SECTION FROM THE GOVERNOR, ATTORNEY GENERAL, STATE

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1 AUDITOR, ANY OF THE RESPECTIVE DISTRICT ATTORNEYS OF THIS STATE,

2 OR ANY FEDERAL OR STATE LAW ENFORCEMENT AGENCY, OR FOR THE USE

3 OF THE INFORMATION OR RECORDS BY THE EXECUTIVE DIRECTOR,

4 DIRECTOR, OR COMMISSION FOR OFFICIAL PURPOSES, OR BY EMPLOYEES OF

5 THE DIVISION OR THE DEPARTMENT IN THE PERFORMANCE OF THEIR

6 AUTHORIZED AND OFFICIAL DUTIES.

7 (3) THIS SECTION DOES NOT MAKE CONFIDENTIAL THE AGGREGATE

8 TAX COLLECTIONS DURING ANY REPORTING PERIOD, THE NAMES AND

9 BUSINESSES OF LICENSEES, OR FIGURES SHOWING THE AGGREGATE

10 AMOUNT OF MONEY BET DURING ANY REPORTING PERIOD.

11 (4) (a) A PERSON WHO DISCLOSES CONFIDENTIAL RECORDS OR

12 INFORMATION IN VIOLATION OF THIS SECTION COMMITS A CLASS 1

13 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION

14 18-1.3-501. A CRIMINAL PROSECUTION PURSUANT TO THIS SECTION MUST

15 BE BROUGHT WITHIN FIVE YEARS AFTER THE DATE THE VIOLATION

16 OCCURRED.

17 (b) IF A PERSON VIOLATING THIS SECTION IS AN OFFICER OR

18 EMPLOYEE OF THE STATE, IN ADDITION TO ANY OTHER PENALTIES OR

19 SANCTIONS, THE PERSON IS SUBJECT TO DISMISSAL IF THE PROCEDURES IN

20 SECTION 24-50-125 ARE FOLLOWED.

21 (c) A PERSON IS LIABLE FOR TREBLE DAMAGES TO AN INJURED

22 PARTY IN A CIVIL ACTION THE SUBJECT OF WHICH INCLUDES THE RELEASE

23 OF CONFIDENTIAL RECORDS OR INFORMATION, IF THE PERSON VIOLATING

24 THIS SECTION IS A CURRENT EMPLOYEE OR OFFICER OF THE STATE WHO

25 OBTAINED THE CONFIDENTIAL RECORDS OR INFORMATION SPECIFIED IN

26 SUBSECTION (1) OF THIS SECTION DURING HIS OR HER EMPLOYMENT.

27 (d) A FORMER EMPLOYEE OR OFFICER IS LIABLE FOR TREBLE

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 1 DAMAGES TO AN INJURED PARTY IN A CIVIL ACTION THE SUBJECT OF WHICH

2 INCLUDES THE RELEASE OF RECORDS OR INFORMATION AFTER LEAVING

3 STATE EMPLOYMENT IF THE PERSON VIOLATING THIS SECTION IS A FORMER

4 EMPLOYEE OR OFFICER OF THE STATE WHO OBTAINED THE CONFIDENTIAL

5 RECORDS OR INFORMATION DURING HIS OR HER EMPLOYMENT AND THE

6 PERSON EXECUTED A WRITTEN STATEMENT WITH THE STATE AGREEING TO

7 BE HELD TO THE CONFIDENTIALITY STANDARDS EXPRESSED IN THIS

8 SUBSECTION (4).

9 44-30-1508. Sports betting tax - rules. (1) THERE IS HEREBY

10 IMPOSED A TAX ON SPORTS BETTING ACTIVITY, AT THE RATE OF TEN

11 PERCENT OF NET SPORTS BETTING PROCEEDS. THE COMMISSION SHALL

12 ESTABLISH BY RULE THE FORM AND MANNER IN WHICH THE TAX IS

13 COLLECTED.

14 (2) ALL PROCEEDS OF THE SPORTS BETTING TAX SHALL BE

15 FORWARDED TO THE STATE TREASURER, WHO SHALL CREDIT THEM TO THE

16 SPORTS BETTING FUND CREATED IN SECTION 44-30-1509.

17 44-30-1509. Sports betting fund - creation - rules - definitions.

18 (1) (a) THERE IS HEREBY CREATED, IN THE STATE TREASURY, THE SPORTS
19 BETTING FUND, REFERRED TO IN THIS SECTION AS THE "FUND". THE INITIAL

20 APPROPRIATION TO THE DIVISION FOR SPORTS BETTING REGULATION AND

21 ALL SUBSEQUENT REVENUES OF THE DIVISION DERIVED FROM SPORTS

22 BETTING ACTIVITY, INCLUDING LICENSE FEES, FINES AND PENALTIES, AND

23 COLLECTION OF THE SPORTS BETTING TAX, SHALL BE DEPOSITED INTO THE

24 FUND. ALL EXPENSES OF THE DIVISION RELATED TO SPORTS BETTING

25 REGULATION, INCLUDING THE EXPENSES OF INVESTIGATION AND

26 PROSECUTION RELATING TO SPORTS BETTING, SHALL BE PAID FROM THE

27 FUND.

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 1 (b) ALL MONEY PAID INTO THE FUND IS CONTINUOUSLY

2 APPROPRIATED FOR THE PURPOSES OF IMPLEMENTING THIS PART 15.

3 PAYMENT SHALL BE MADE UPON PROPER PRESENTATION OF A VOUCHER
4 PREPARED BY THE COMMISSION IN ACCORDANCE WITH OTHER STATUTES

5 GOVERNING PAYMENTS OF LIABILITIES INCURRED ON BEHALF OF THE STATE

6 AND SHALL NOT BE CONDITIONED ON ANY APPROPRIATION BY THE

7 GENERAL ASSEMBLY. RECEIPT OF THE PAYMENT CONSTITUTES SPENDING

8 AUTHORITY BY THE DIVISION.

9 (2) FROM THE MONEY IN THE SPORTS BETTING FUND, THE STATE
10 TREASURER SHALL:

11 (a) FIRST, TRANSFER AN AMOUNT TO THE GENERAL FUND TO REPAY

12 ANY APPROPRIATION MADE FROM THE GENERAL FUND FOR THE

13 COMMISSION'S AND DIVISION'S STARTUP COSTS, INCLUDING INITIAL

14 LICENSING AND RULE-MAKING, RELATED TO SPORTS BETTING.

15 (b) SECOND, PAY ALL ONGOING EXPENSES RELATED TO

16 ADMINISTERING THIS PART 15 INCURRED BY THE COMMISSION, THE

17 DEPARTMENT, THE DIVISION, AND ANY OTHER STATE AGENCY FROM WHOM

18 ASSISTANCE RELATED TO THE ADMINISTRATION OF THIS PART 15 IS

19 REQUESTED BY THE COMMISSION OR THE DIRECTOR, AS DETERMINED IN

20 ACCORDANCE WITH RULES OF THE COMMISSION. WHEN MAKING

21 DISTRIBUTIONS FROM THE FUND AS DESCRIBED IN THIS SUBSECTION (2),

22 THE STATE TREASURER MAY WITHHOLD AN AMOUNT REASONABLY

23 ANTICIPATED TO BE SUFFICIENT TO PAY THE EXPENSES UNTIL THE NEXT

24 ANNUAL DISTRIBUTION.

25 (c) THIRD, TRANSFER AN AMOUNT EQUAL TO TWO PERCENT OF THE

26 FULL FISCAL YEAR SPORTS BETTING TAX REVENUES TO THE STATE

27 HISTORICAL FUND CREATED BY SECTION 9 (5)(b)(II) OF ARTICLE XVIII OF

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 1 THE STATE CONSTITUTION AND THE COLLEGES DESCRIBED IN SECTION

2 44-30-702 (4)(a), IN PROPORTION TO THE PRIOR FISCAL YEAR'S LIMITED

3 AND EXTENDED GAMING REVENUE TO EACH AS DETERMINED UNDER

4 SECTIONS 44-30-701 AND 44-30-702, PLUS AN ANNUAL ADJUSTMENT

5 CALCULATED AS FOLLOWS:

6 (I) FOR REVENUES COLLECTED IN FISCAL YEAR 2020-21, THE

7 PAYMENT MUST EQUAL TWO PERCENT OF THE FIRST YEAR'S REVENUES

8 ATTRIBUTABLE TO SPORTS BETTING.

9 (II) FOR EACH FISCAL YEAR AFTER THE 2020-21 FISCAL YEAR, THE
10 STATE TREASURER SHALL ADJUST THE ANNUAL PAYMENT AS FOLLOWS:

11 (A) FOR ANY FISCAL YEAR IN WHICH THE ANNUAL GROWTH OF

12 REVENUES ATTRIBUTABLE TO SPORTS BETTING EQUALS OR EXCEEDS TWO

13 PERCENT, ADD AN AMOUNT TO THE PAYMENT MADE FOR THE PRIOR FISCAL

14 YEAR EQUAL TO TWO PERCENT OF SAID REVENUES;

15 (B) FOR ANY FISCAL YEAR IN WHICH THE ANNUAL GROWTH IN

16 REVENUES ATTRIBUTABLE TO SPORTS BETTING EQUALS OR EXCEEDS ZERO

17 BUT IS LESS THAN TWO PERCENT, ADD AN AMOUNT TO THE PAYMENT MADE

18 FOR THE PRIOR FISCAL YEAR EQUAL TO THE ACTUAL PERCENTAGE GROWTH

19 OF SAID REVENUES;

20 (C) FOR ANY FISCAL YEAR IN WHICH REVENUES ATTRIBUTABLE TO

21 SPORTS BETTING EXPERIENCE A DECLINE, REDUCE THE PAYMENT BY AN

22 AMOUNT EQUAL TO THE ACTUAL PERCENTAGE DECLINE OF SAID REVENUES.

23 (d) FOURTH, TRANSFER ONE HUNDRED THIRTY THOUSAND

24 DOLLARS ANNUALLY TO THE OFFICE OF BEHAVIORAL HEALTH IN THE

25 DEPARTMENT OF HUMAN SERVICES, TO BE USED AS FOLLOWS:

26 (I) THIRTY THOUSAND DOLLARS FOR THE OPERATION OF A CRISIS

27 HOTLINE FOR GAMBLERS BY ROCKY MOUNTAIN CRISIS PARTNERS OR ITS

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 1 SUCCESSOR ORGANIZATION; AND

2 (II) ONE HUNDRED THOUSAND DOLLARS FOR PREVENTION,

3 EDUCATION, TREATMENT, AND WORKFORCE DEVELOPMENT BY, AND

4 INCLUDING THE PAYMENT OF SALARIES OF, COUNSELORS CERTIFIED IN THE

5 TREATMENT OF GAMBLING DISORDERS.

6 (e) FIFTH, TRANSFER ALL REMAINING UNEXPENDED AND

7 UNENCUMBERED MONEY IN THE FUND TO THE WATER PLAN

8 IMPLEMENTATION CASH FUND CREATED IN SECTION 37-60-123.3.

9 (3) NOTHING IN THIS SECTION PERMITS COMPOUNDING OR

10 ACCUMULATION OF THE ANNUAL ADJUSTMENT.

11 (4) UPON REQUEST, THE STATE TREASURER SHALL REPORT TO THE

12 DIRECTOR OR THE COMMISSION THE AMOUNT OF MONEY AVAILABLE IN THE

13 FUND. THE DIRECTOR SHALL CERTIFY ALL ACCOUNTS AND EXPENDITURES

14 FROM THE FUND. THE STATE TREASURER SHALL PAY UPON WARRANTS

15 DRAWN BY THE CONTROLLER. THE CONTROLLER IS AUTHORIZED AS

16 DIRECTED TO DRAW WARRANTS PAYABLE OUT OF THE FUND UPON

17 VOUCHERS PROPERLY CERTIFIED.

18 (5) THE STATE TREASURER SHALL INVEST THE MONEY IN THE FUND
19 SO LONG AS THE MONEY IS TIMELY AVAILABLE TO PAY THE EXPENSES OF

20 THE DIVISION. INVESTMENTS MUST BE THOSE OTHERWISE PERMITTED BY

21 STATE LAW, AND INTEREST OR ANY OTHER RETURN ON THE INVESTMENTS

22 SHALL BE PAID INTO THE FUND.

23 (6) THE DIVISION SHALL BE OPERATED SO THAT, AFTER THE INITIAL

24 STATE APPROPRIATION, ITS ADMINISTRATION OF THIS PART 15 IS

25 FINANCIALLY SELF-SUSTAINING.

26 (7) NO CLAIM FOR THE PAYMENT OF ANY EXPENSE OF THE DIVISION

27 RELATING TO ADMINISTERING THIS PART 15 CAN BE MADE UNLESS IT IS

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 1 AGAINST THE FUND. NO OTHER MONEY OF THE STATE SHALL BE USED OR

2 OBLIGATED TO PAY THE EXPENSES OF THE DIVISION OR COMMISSION

3 RELATED TO SPORTS BETTING.

4 44-30-1510. Audits. THE SPORTS BETTING FUND SHALL BE

5 AUDITED AT LEAST ONCE BEFORE MAY 1, 2022, AND AT LEAST ONCE

6 EVERY FIVE YEARS THEREAFTER, BY OR UNDER THE DIRECTION OF THE

7 STATE AUDITOR, WHO, NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I),

8 SHALL SUBMIT A REPORT OF THE AUDIT TO THE LEGISLATIVE AUDIT

9 COMMITTEE. THE EXPENSES OF THE AUDIT SHALL BE PAID FROM THE

10 SPORTS BETTING FUND.

11 44-30-1511. Unlawful acts. (1) IN ADDITION TO THE

12 PROHIBITIONS IN SECTION 44-30-801, IT IS UNLAWFUL FOR ANY PERSON:

13 (a) TO CHARGE, IN CONNECTION WITH THE PLACEMENT OR

14 ACCEPTANCE OF A BET, A COMMISSION OR FEE GREATER THAN OR LESS

15 THAN THAT FIXED BY THE COMMISSION;

16 (b) TO ACCEPT A BET BY ANY PERSON UNDER TWENTY-ONE YEARS

17 OF AGE; OR

18 (c) TO ACCEPT A BET AT ANY PLACE OR IN ANY MANNER OTHER

19 THAN A PLACE OR MANNER AUTHORIZED AND SPECIFIED IN A SPORTS

20 BETTING LICENSE.

21 44-30-1512. Penalties. (1) IN ADDITION TO ANY OTHER PENALTIES

22 THAT MAY APPLY, A PERSON VIOLATING SECTION 44-30-1511 COMMITS A

23 CLASS 2 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION

24 18-1.3-501.
25 (2) A PERSON VIOLATING THE ACCEPTANCE OF BETS RESTRICTIONS
26 OF SECTION 44-30-1511 (1)(b) MAY ALSO BE PROSECUTED PURSUANT TO
27 SECTION 18-6-701 FOR CONTRIBUTING TO THE DELINQUENCY OF A MINOR.

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 1 (3) A PERSON PURPORTING TO ISSUE, SUSPEND, REVOKE, OR RENEW
2 LICENSES PURSUANT TO THIS PART 15 OR TO PROCURE OR INFLUENCE THE

3 ISSUANCE, SUSPENSION, REVOCATION, OR RENEWAL OF A LICENSE FOR ANY

4 PERSONAL PECUNIARY GAIN OR ANY THING OF VALUE, AS DEFINED IN

5 SECTION 18-1-901 (3)(r), OR A PERSON VIOLATING SECTION 44-30-1502

6 COMMITS A CLASS 3 FELONY AND SHALL BE PUNISHED AS PROVIDED IN
7 SECTION 18-1.3-401.

8 (4) A PERSON VIOLATING ANY PROVISION OF THIS PART 15

9 RELATING TO DISCLOSURE BY PROVIDING FALSE OR MISLEADING

10 INFORMATION COMMITS A CLASS 6 FELONY AND SHALL BE PUNISHED AS

11 PROVIDED IN SECTION 18-1.3-401.

12 44-30-1513. Other laws inapplicable. ANY OTHER STATE OR

13 LOCAL LAW IN CONFLICT WITH THIS PART 15 IS INAPPLICABLE, BUT THIS

14 SECTION DOES NOT SUPERSEDE OR AFFECT PART 6 OF ARTICLE 21 OF TITLE

15 24.
16 44-30-1514. Approval by electors - repeal. (1) THE SECRETARY
17 OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF THE STATE FOR

18 THEIR APPROVAL OR REJECTION AT THE STATEWIDE ELECTION HELD IN

19 NOVEMBER 2019 THE FOLLOWING BALLOT ISSUE: "SHALL STATE TAXES BE

20 INCREASED BY __________ DOLLARS ANNUALLY TO FUND STATE WATER

21 PROJECTS AND COMMITMENTS AND TO PAY FOR THE REGULATION OF

22 SPORTS BETTING THROUGH LICENSED CASINOS BY AUTHORIZING A TAX ON

23 SPORTS BETTING OF TEN PERCENT OF NET SPORTS BETTING PROCEEDS, AND

24 TO IMPOSE THE TAX ON PERSONS LICENSED TO CONDUCT SPORTS BETTING

25 OPERATIONS?".

26 (2) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2020.

27 44-30-1515. Repeal of part. (1) THIS PART 15 IS REPEALED,

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 1 EFFECTIVE MAY 1, 2020, IF THE VOTERS AT THE NOVEMBER 2019
2 STATEWIDE ELECTION DO NOT APPROVE THE QUESTION DESCRIBED IN

3 SECTION 44-30-1514 AND THE GOVERNOR ISSUES AN OFFICIAL

4 DECLARATION OF THE VOTE THEREON.

5 (2) THIS SECTION IS REPEALED, EFFECTIVE MAY 1, 2020, IF THE

6 VOTERS AT THE NOVEMBER 2019 STATEWIDE ELECTION APPROVE THE

7 QUESTION DESCRIBED IN SECTION 44-30-1514 AND THE GOVERNOR ISSUES

8 AN OFFICIAL DECLARATION OF THE VOTE THEREON.

9 SECTION 12. In Colorado Revised Statutes, 18-10-102, amend

10 (2)(d) and (2)(f); and add (2)(g) as follows:
11 18-10-102. Definitions. As used in this article 10, unless the
12 context otherwise requires:
13 (2) "Gambling" means risking any money, credit, deposit, or other
14 thing of value for gain contingent in whole or in part upon lot, chance, the
15 operation of a gambling device, or the happening or outcome of an event,
16 including a sporting event, over which the person taking a risk has no
17 control, but does not include:
18 (d) Any game, wager, or transaction which THAT is incidental to
19 a bona fide social relationship, is participated in by natural persons only,
20 and in which no person is participating, directly or indirectly, in
21 professional gambling; or
22 (f) Any use of or transaction involving a crane game, as defined
23 in section 44-30-103 (9); OR
24 (g) SPORTS BETTING CONDUCTED IN ACCORDANCE WITH PART 15
25 OF ARTICLE 30 OF TITLE 44 AND APPLICABLE RULES OF THE LIMITED

26 GAMING CONTROL COMMISSION.

27 SECTION 13. In Colorado Revised Statutes, add 37-60-123.3 as

-40- HB19-1327
 1 follows:
2 37-60-123.3. Water plan implementation cash fund - created.
3 (1) THERE IS HEREBY CREATED IN THE STATE TREASURY THE WATER PLAN
4 IMPLEMENTATION CASH FUND, REFERRED TO IN THIS SECTION AS THE

5 "FUND". THE FUND CONSISTS OF SPORTS BETTING REVENUES TRANSFERRED

6 FROM THE SPORTS BETTING FUND IN ACCORDANCE WITH SECTION

7 44-30-1509 AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY
8 APPROPRIATE OR TRANSFER TO THE FUND. THE STATE TREASURER SHALL

9 CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND

10 INVESTMENT OF MONEY IN THE FUND TO THE FUND.

11 (2) FROM THE FUND, THE BOARD MAY APPROVE OF:

12 (a) GRANTS PURSUANT TO SECTION 37-60-106.3 (6);
13 (b) EXPENDITURES TO ENSURE COMPLIANCE WITH INTERSTATE

14 WATER ALLOCATION COMPACTS, EQUITABLE APPORTIONMENT DECREES,

15 INTERNATIONAL TREATIES, AND FEDERAL LAWS RELATING TO INTERSTATE

16 STORAGE AND RELEASE, APPORTIONMENT, AND ALLOCATION OF WATER,

17 INCLUDING TO SUPPORT PROJECTS AND PROCESSES THAT MAY INCLUDE

18 COMPENSATION TO WATER USERS FOR TEMPORARY AND VOLUNTARY

19 REDUCTIONS IN CONSUMPTIVE USE THAT ARE REGIONALLY EQUITABLE AND

20 AVOID DISPROPORTIONATE, NEGATIVE ECONOMIC OR ENVIRONMENTAL

21 IMPACTS TO ANY SINGLE SUBBASIN OR REGION; AND

22 (c) EXPENDITURES THAT MAY BE NECESSARY FOR THE

23 ADMINISTRATION OF GRANTS AND COMPACT EXPENDITURES LISTED IN

24 SUBSECTIONS (2)(a) AND (2)(b) OF THIS SECTION.

25 SECTION 14. Act subject to petition - effective date.
26 (1) Except as specified in subsection (2) of this section, this act takes
27 effect at 12:01 a.m. on the day following the expiration of the ninety-day

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 1 period after final adjournment of the general assembly (August 2, 2019,
2 if adjournment sine die is on May 3, 2019); except that, if a referendum
3 petition is filed pursuant to section 1 (3) of article V of the state
4 constitution against this act or an item, section, or part of this act within
5 such period, then the act, item, section, or part will not take effect unless
6 approved by the people at the general election to be held in November
7 2020 and, in such case, will take effect on the date of the official
8 declaration of the vote thereon by the governor.
9 (2) (a) Sections 1 to 3, 6, 7, 12, and 13 of this act and sections
10 44-30-1501, 44-30-1502, and 44-30-1506 to 44-30-1514, Colorado
11 Revised Statutes, enacted by section 11 of this act, take effect only if, at
12 the November 2019 statewide election, a majority of voters approve the
13 ballot question submitted pursuant to section 44-30-1514, Colorado
14 Revised Statutes, enacted in section 11 of this act.
15 (b) If the voters at the November 2019 statewide election approve
16 the ballot question described in subsection (2)(a) of this section, then
17 sections 1 to 3, 6, 7, 12, and 13 of this act and sections 44-30-1501,
18 44-30-1502, and 44-30-1506 to 44-30-1514, Colorado Revised Statutes,
19 enacted by section 11 of this act, take effect May 1, 2020.
20 (c) Section 13 of this act takes effect only if Senate Bill 19-212
21 becomes law.

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