Colorado Springs police notify local businesses of potential illegal gaming devices

Mar. 22—The Colorado Springs Police Department is in the process of informing nearly three dozen local businesses that they may be in violation of state gambling statutes, according to a Wednesday news release.

This week, officers from the police department's Metro Division are making in-person visits to as many as 36 businesses across the city to inform owners and managers about Colorado's gambling statutes, how these businesses could be violating the laws and the potential penalties for noncompliance.

Metro Division Lt. Mark Chacon said this is the "education phase" of the division's anti-gambling operation, which includes analysis of about a year's worth of calls for service and citizen complaints about illegal electronic gaming devices in local establishments.

"Some of the businesses don't know (the gaming machines) are illegal. Some of them do," Chacon said. "But it's important for us to get the information out to everybody that's operating in these businesses to educate them on what the statutes say, to educate them on the legalities, and for them to understand what those are so they can become in compliance with state law."

At first glance, many gambling devices look like ordinary video arcade games. What sets them apart — and makes them illegal — is the potential for a monetary payout, officials said. A business that operates even one machine that offers a potential cash return — or issues coupons/tickets that can be redeemed for cash — is, according to Colorado Revised Statute 18-10-107, a gambling establishment.

"Basically, gambling in the state of Colorado is illegal, except for certain exemptions like Black Hawk or Cripple Creek," Chacon said.

According to the law, any "owner, lessee, agent, employee, operator, or occupant" that knowingly maintains "gambling premises" is committing a Class 2 misdemeanor. Repeating the offense is a Class 6 felony, punishable by up to $100,000 in fines and/or 18 months in prison.

A key word in the statute, police said, is "knowingly." That's why the Metro Division, which investigates allegations of illegal gambling activity in the city, is making sure the business operators know they might be breaking the law.

Some of the businesses house the simulated gaming machines as part of a larger business, like a bar, arcade or pool hall, officials said. But many of them utilize the devices as a primary source of income.

"There are businesses where (illegal gaming) is all they do," said police spokeswoman Pamela Castro.

Law enforcement analysts have determined that illegal gambling businesses have been related to "serious criminal activity," including money laundering, drug deals, shootings and the arrest of armed fugitives, Chacon said.

"At this time, the illegal gambling premises have become a community-based issue," he said. "We are receiving a lot of complaints from the community about these (businesses)."

After the informational period, police will allow time for business owners and managers to familiarize themselves with the gambling statutes, determine whether they are in compliance and make adjustments if necessary, officials said.

"CSPD will conduct additional evaluations and investigations if needed," the department said in the news release.

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