The Regology Regulatory Highlight is an addendum to the monthly Regulatory Report that takes a deep dive into a single subject/state.
For the month of July, there were 55 regulatory change alerts from 20 different jurisdictions. After reviewing these regulatory changes, we are highlighting the state of Colorado this month.
Code of Colorado Regulations
Rights and Duties of Licensees: There were significant changes to the sections within Rule 4 including requirements for licensees to provide a list of personnel prior to opening a business be sent to the Director. Licensees are also required to submit new reports or notices that are now required by the Colorado Limited Gaming Act. Another important change redefined the terms “dealing shoes” and “shuffling device” along with new rules on the value of cards for “blackjack”. Enforcement requirements for gaming businesses were changed to include “immediate” inspection of all gambling related records, equipment, and access to the property where gaming is conducted. [1 COCR 207-1 RULE 4 (30-401 thru 426)]
Grounds and Procedures for Disciplinary Actions: Rule 5 was amended to allow citizen complaints against a gaming business to be considered as grounds for disciplinary action by the Director. In addition, gaming operators can submit an assurance of voluntary compliance to the Director and may not be considered an admission of a violation. [1 COCR 207-1 RULE 5 (30-501 thru 513)]
Rules for Blackjack: New language was inserted into Section 30-801 that redefines the value of the cards contained in a deck of cards as follows: (a) A card from 2 to 10 has its face value; (b) A jack, queen, or king has a value of 10; and (c) An ace may have a value of either 1 or 11 unless a value of 11 would give a player or the dealer a score in excess of 21, in which case it has a value of one. (2) A standard blackjack deck shall contain 52 cards in four suits (hearts, diamonds, clubs, and spades) with each suit consisting of numerical cards from 2 to 10 and a jack, a queen, a king, and an ace. Two or more decks of cards may be combined for play at blackjack. (3) If permitted or required by the rules of a blackjack variation game, a joker may be added to make a 53 card deck, and two or more such decks may be combined for play of the game. One or more jokers may be added to a deck, or combination of decks, for short term promotional play with the advance approval of the Director or Director’s designee. When jokers are in use, the licensee must provide signage describing the card value(s) or usage of the jokers. (4) Upon written application of a retail licensee, the Director or Director’s designee may permit the licensee to use non standard decks of cards, or decks of cards of alternative card content, for short term promotional play. redefined rules for licensees and players. [1 COCR 207-1 RULE 8 (30-801)]
Minimum Procedures for Drop, Count, and Distribution for Drop, Count, and Distribution of Chips and Coins for Blackjack, Craps, and Roulette: New procedures for distribution and removal of chips to blackjack, craps and roulette tables were inserted into Rule 9 sections along with; individual and statistical game records requirements that must be maintained by the licensee. [1 COCR 207-1 RULE 9 (30-901 thru 904)]
Parimutuel and Simulcast Wagering: New language has been inserted into Chapter 12 stating, “Prior to any unclaimed pari-mutuel ticket information being purged from the totalisator system, the association must obtain and provide the Division with two outs books detailing all unclaimed pari-mutuel tickets through the last day of the period being purged. One book must detail only those outs generated by horse races. One book must detail only those outs generated by dog races.” Additional language was inserted to allow an association to “keep its unclaimed pari-mutuel ticket liability account in the tote system. Unclaimed pari-mutuel ticket information shall not be purged from the tote system until the proceeds revert from the bettor to another party pursuant to sections 44-32-702(1)(i) and 44-32-705(2). Information shall be purged by the following schedule: 1. Proceeds reverting between January 1 and March 31 are to be purged no later than April 10. 2. Proceeds reverting between April 1 and June 30 are to be purged no later than July 10. 3. Proceeds reverting between July 1 and September 30 are to be purged no later than October 10. 4. Proceeds reverting between October 1 and December 31 are to be purged no later than January 10 of the following year.” [CCR 208 Chapter 12]
Rules of the Race Horses: New language was inserted into Chapter 7.107 to allow “a breed association to require additional testing as a condition of eligibility at any in-state racetrack. A breed association may require specific eligibility conditions related to the frequency that a horse must produce a negative result, the specimen type to be tested, the substances to be tested for, reciprocity with other jurisdictions and any other requirements the governing board deems reasonable. The breed association must first vote on and pass the eligibility conditions and then must present the eligibility conditions to the Commission at an open meeting before the start of the race meet. The Commission shall make determinations concerning the reasonableness of the eligibility conditions and approve or deny the conditions. If the conditions are reasonable, the Commission shall adopt the eligibility requirements for the breed for the next race meet only. The Stewards shall scratch any horse that does not meet eligibility requirements as approved by the Commission. A trainer who enters a horse that is subsequently scratched for not meeting the eligibility requirements may be fined for failing to meet the eligibility requirements. If a horse which previously produced a negative test for eligibility subsequently produces a positive test for eligibility, the Division shall be notified immediately. The Division will investigate the circumstances and the trainer of the horse may be subject to administrative action.” [CCR 208 Chapter 7.107]
Colorado Horse Breeders and Owners Awards and Supplemental Purse Fund: New language has been added to Chapter 9 to stipulate where the Supplemental Purse Fund can be derived from, along with new rules for distribution of Colorado horse breeders and owners awards and supplemental purse funds. All money in the funds will be distributed to the breeder organizations for distribution and calculated by calendar year. These funds will be distributed annually to each breeder’s organization and distributed “according to the percentage of the actual handle, as calculated by the association, that each horse breed generated from all live and simulcast races conducted as part of all live race meets within that year. no breed shall receive more than eighty percent (80%). The handle on a mixed race will be considered generated proportionally by breed according to the number of starters in that race. The association shall report at least quarterly, or as requested by the Director, to the Division, the percentage of races each breed has participated in and total dollars accumulated in the owners and breeders fund. Proceeds from unclaimed pari-mutuel tickets that have reverted to the Fund will be distributed to breeder’s organizations using the distribution percentages calculated in Rule 9.316 for the calendar year the tickets were issued.. [CCR 208, Sections 9.300 through 9.326]
