Colorado Is Cracking Down on Gray Casinos with New Regulations

New legislation allowing for more extensive investigation of the illegit casinos in Colorado, which are often called “gray casinos”, will assist the state’s efforts to bust these illegal gambling activities.

Cryptocurrency Helps Gray Casinos Get Around the Law

Colorado Governor Jared Polis has just passed new regulations, which give a wider authority to Colorado’s Division of Gaming. The new rules will let the Division investigate gambling activities outside of the three Colorado towns, Blackhawk, Cripple Creek, and Central City, where voters decided to make gambling legal. This is meant to support local communities in their quest to shut down such illegal gambling businesses.

The new law is a result of a Denver7 special investigation into gray casinos across the state. The TV station used a hidden camera to reveal illegal activities in the so-called “adult gaming arcades” or “gray casinos”, where something similar to slot machines is on offer. It was revealed that these venues often get around the strict Colorado gambling rules by using cryptocurrency to make the payouts to players. Gamblers then use a crypto machine, where they can exchange the currency for US dollars. However, some of these businesses are even bolder. They give players cash directly contrary to what is allowed by state regulations.

The director of Colorado’s Division of Gaming, Dan Hartman, has pledged to eradicate this gray gambling market completely and has noted that the way he sees it most of the arcade businesses are definitely not legal. The investigations that will be conducted as a result of the new legislation will help the state and local authorities to determine whether the venues abide by the law or not.

City of Aurora’s Own Crack Down

The City of Aurora, which is the third largest city in Colorado, is also taking steps in order to tackle this problem. Curtis Gardner, one of the city’s councilors, recently passed new rules that will ban the use of the arcades, which are popular at these venues. In addition, the ordinance is also going to ban the use of cryptocurrency for payouts. The new rules have been approved by the whole council and will become part of the city’s law in August. Gardner is also hoping to see more action in regard to state legislation tackling this issue.

Additionally, there are reports from the police force in another Colorado town, Montrose, where these illegal gambling businesses have brought in significant troubles with crimes such as shootings and robberies.   

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