(1) A person commits
unlawful offering of a simulated gambling device if the person offers, facilitates,
contracts for, or otherwise makes available to or for members of the public or
members of an organization or club any simulated gambling device where:
(a) The person receives, directly or indirectly, a payment or transfer of
consideration in connection with an entrant's use of the simulated gambling device,
admission to premises on which the simulated gambling device is located, or the
purchase of any product or service associated with access to or use of the
simulated gambling device, regardless of whether consideration in connection with
such use, admission, or purchase is monetary or nonmonetary and regardless of
whether it is paid or transferred before the simulated gambling device is used by an
entrant; and
(b) As a consequence of, in connection with, or after the play of the
simulated gambling device, an award of a prize is expressly or implicitly made to a
person using the device.
(2) Unlawful offering of a simulated gambling device is a class 2
misdemeanor.
(3) Without regard to any penalty imposed under subsection (2) of this
section, the attorney general and each district attorney may apply to the district
court of a district in which a person who violates subsection (1) of this section is
located, advertises for entrants, or does business for appropriate additional relief,
including:
(a) Injunctive relief, including a temporary restraining order or preliminary or
permanent injunction, to restrain and enjoin violations of this section;
(b) Damages, up to and including three times the total dollar amount of
business transacted or facilitated by any person who violates subsection (1) of this
section, payable to the local jurisdiction in which the person is located, advertises
for entrants, or does business; and
(c) Other relief the district court deems appropriate.
(4) A person who suffers any ascertainable loss of money or of any tangible
or intangible personal property as a result of a violation of this section and who also
holds a license to offer gambling services under Colorado law may apply to the
district court of any district where the person who violates subsection (1) of this
section is or was located, advertises for entrants, or does business for appropriate
additional relief, including:
(a) Injunctive relief, including a temporary restraining order or preliminary or
permanent injunction, to restrain and enjoin violations of this section;
(b) Damages up to and including three times the actual damages sustained
as a result of violations of this section;
(c) Reasonable attorney fees and costs; and
(d) Other relief the district court deems appropriate.
(5) The court may award reasonable attorney fees and costs to a defendant
for any action filed pursuant to subsection (4) of this section that was substantially
groundless, frivolous, or vexatious.
(6) A criminal conviction against a named defendant under subsection (2) of
this section is prima facie evidence of the liability of that named defendant in an
action brought under subsection (3) or (4) of this section.
(7) A civil action under this section must be filed within one year after the act
or transaction giving rise to the cause of action.
(8) Conducting or assisting in the conduct of gaming wagering activities and
live or simulcast racing and pari-mutuel wagering activities otherwise authorized by
Colorado law is not a violation of this section.
(9) Nothing in this section:
(a) Prohibits, limits, or otherwise affects any purchase, sale, exchange, or
other transaction related to stocks, bonds, futures, options, commodities, or other
similar instruments or transactions occurring on a stock or commodities exchange,
brokerage house, or similar entity; or
(b) Limits or alters the application of the requirements for sweepstakes,
contests, and similar activities that are otherwise established under the laws of this
state.
(10) The provision of internet or other online access, transmission, routing,
storage, or other communication-related services or website design, development,
storage, maintenance, billing, advertising, hypertext linking, transaction processing,
or other site-related services by a telephone company, internet service provider,
software developer or licensor, or other party providing similar services to
customers in the normal course of its business does not violate this section even if
those customers use the services to conduct a prohibited game, contest, lottery, or
other activity in violation of this article; except that this subsection (10) does not
exempt from criminal prosecution or civil liability a software developer, licensor, or
other party whose primary purpose in providing such service is to support the
offering of simulated gambling devices.
(11) This section does not apply to an owner, operator, employee, or customer
of a simulated gambling device, or of a business offering simulated gambling
devices, who:
(a) Ceased participating in such activity on or before July 1, 2018; and
(b) Provides clear documentation to the district attorney that:
(I) A lawful contract has been entered into for the sale or transfer of all
simulated gambling devices connected with the activity to a person by whom, or
into a jurisdiction where, the activity is lawful; and
(II) Consummates the contract by actually selling or transferring the
simulated gambling devices within one hundred eighty days after the contract was
entered into or after any simulated gambling devices that were seized, confiscated,
or forfeited by law enforcement authorities have been returned, whichever occurs later.