Here’s the Ticket
Recently a bill to ban video sweepstakes cafes has passed the Colorado House and will be taken up by the Senate committee when the legislature begins its next session. Illegal gambling is defined as offering a prize by ‘offering or providing the use of a simulated gaming device in exchange for any type of consideration, whether the consideration is technically classified as the price of using the device, the price of admission to premises, …or the purchase price of an associated product or service.” A simulated gaming device is defined as a mechanically or electronically operated machine.
What This Could Mean
Once again a state in its attempt to shut down sweepstakes cafes has used language that may have adverse effects on amusement games. Defining a simulated gaming device is not easy. It would make more sense to define what is permitted and what is prohibited. Courts in several states have interpreted that if the product or service being purchased has no value to the customer, then receiving a try in a sweepstakes game is gambling. Colorado has attempted to narrow the language so that it would not be necessary to prove what products are of no value, which opens up loopholes and makes it easier for sweepstakes cafes to survive. A better approach may be to concentrate on defining all of the types of products and services that are not permitted and not having to worry if they have an incidental value or not but that they are measurable. A few legal sources suggested adding language that covered prohibiting devices with internet access and prohibiting any purchase of credits or free points of anything measurable for an opportunity to win additional credits or points or other measurable units that are redeemable. Note that this language would be needed to not only protect amusement games but also to protect cell phones, tablets or computers which might be illegal under the definition of a gambling device as they can be used to access sweepstakes websites.
Hopefully, members of the amusement industry will be successful in having the Colorado Senate language improved and perhaps state what types of amusement games are permitted. All of the states need to avoid what has happened in Florida and what may happen in Maryland and California.
