Illegal Operation of Sweepstakes Cafes in Colorado According to State Attorney General
Sweepstakes Cafes in Colorado Operate in a Legal Gray Area
Sweepstakes cafes in Colorado find themselves in a complex legal landscape, as the state has not explicitly legalized or banned these establishments. While Colorado legalized sports betting in 2019, online casinos remain illegal, and charity organizations may only sponsor gambling events at licensed casinos within the state.
The Attorney General's office in Colorado believes that sweepstakes cafes are illegal due to their classification as a form of gambling. However, as of yet, there have been no moves to raid or shut down any sweepstakes cafes, leaving the fate of these establishments in the hands of local law enforcement officials.
Dan Corsentino, a consultant for Cyber GT Systems which owns seven of the businesses, believes that the cafes do not constitute gambling. Corsentino asserts that the games offered at the cafes have some level of skill, and he desires regulation instead of outright prohibition of sweepstakes cafes.
Approximately 40 sweepstakes cafes are currently operating in Colorado. State Representative Polly Lawrence, a sponsor of legislation aimed at eliminating sweepstakes cafes, asserts that the Attorney General's verdict on the illegality of sweepstakes cafes is clear.
Sweepstakes cafes use various methods to attempt to circumvent gambling laws, such as requiring the purchase of products like phone cards or Internet time for sweepstakes entries. This has led to criticism from Lawrence, who believes these establishments exploit the poor and elderly.
The Lakewood City Council passed a one-year moratorium on licensing sweepstakes cafes in 2014 to observe how the state would regulate them. Corsentino suggests that sweepstakes cafes might adapt their business models to comply with state laws, such as increasing the sale of goods and avoiding areas with casino gambling.
In other states, the legal status of sweepstakes cafes varies. California faces strong legal opposition due to existing laws such as the Internet Cafe Law, and sweepstakes casinos are effectively restricted or under significant legal threat in the state. Florida, like Colorado, does not have an explicit ban on sweepstakes cafes, but they are subject to scrutiny as elsewhere. Mississippi, on the other hand, likely operates sweepstakes cafes legally as part of the 46 states allowing sweepstakes casinos.
Corsentino hopes that Colorado officials will find a better way to handle the sweepstakes cafe industry compared to states like Florida, California, and Mississippi where operators have lost legal battles. However, the illegal gambling status of sweepstakes cafes in Colorado requires approval by voters through an amendment to the state's constitution to become legal.
- Despite Colorado's legal ambiguity towards sweepstakes cafes, the casino-and-gambling industry continues to flourish, offering casino-games like the ones found in traditional casinos, and even participating in lotteries, such as the purchase of products for sweepstakes entries.
- As the trend of gambling evolves, with other states dealing with sweepstakes cafes differently, proponents of these businesses, like Dan Corsentino, advocate for regulation, aiming for a more lenient approach like that seen in Mississippi, rather than the strict prohibition faced in states like California.
