HomeMy WebLinkAbout10703ORDINANCE NO. 10703
AN ORDINANCE CREATING ARTICLE IX OF CHAPTER 1 OF
TITLE XI WITHIN THE PUEBLO MUNICIPAL CODE, ADDING
SECTIONS 11-1-901 THROUGH 11-1-904 THERETO,
ENACTING PROVISIONS AND PROHIBITIONS WITH RESPECT
TO CERTAIN GAMING AND GAMBLING DEVICES, AND
PROVIDING PENALTIES FOR THE VIOLATION THEREOF
and authority vested under Colorado law; and
WHEREAS, the use of simulated gambling devices is prohibited by state law; and
WHEREAS, the State of Colorado has declared through the Legislature that there is a
close relationship between professional gambling and other crime; and
WHEREAS, City finds it is in the best to restrain all persons from seeking profit from
gambling activities; to safeguard the public against the evils induced by common gamblers and
common gambling houses; and at the same time to preserve the freedom of the press and to
avoid restricting participation by individuals in sport and social pastimes which are not for profit,
do not affect the public, and do not breach the peace; and
WHEREAS, the absence of regulation and ongoing governmental oversight presents a
danger to consumers within the City, putting at risk the financial resources of vulnerable persons
and customers who have no avenue of appeal when there are questionable practices by the
operators of these sites; and
WHEREAS, the Pueblo Police Department has investigated and determined that
simulated gambling devices are being used within the City and associated with other crimes;
NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Article IX of Chapter 1 of Title XI of the Pueblo Municipal Code is hereby created and
enacted to read as follows:
ARTICLE IX Gambling Devices
SECTION 2.
Section 11-1-901 of the Pueblo Municipal Code is hereby enacted to read as follows:
Sec. 11-1-901. Definitions.
As used in this Code, unless the context otherwise requires:
(a) Electronic gaming machine means an electrically or electronically operated
machine or device that is used by a sweepstakes entrant and that displays the results of
a game entry or game outcome to a participant on a screen or other mechanism at a
business location, including a private club, that is owned, leased, or otherwise
possessed, in whole or in part, by a person conducting the sweepstakes or by that
under this code if any part, program, game or the like qualify. The term includes a
machine or device that:
(1) Uses a simulated game terminal as a representation of the prizes
associated with the results of the sweepstakes entries;
(2) Uses software that simulates a game that influences or determines the
winning or value of the prize, or appears to influence or determine the winning or value
of the prize;
(3) Selects prizes from a predetermined, finite pool of entries;
(4) Uses a mechanism that reveals the content of a predetermined
sweepstakes entry;
(5) Predetermines the prize results and stores those results for delivery when
the sweepstakes entry is revealed;
(6) Uses software to create a game result;
(7) Requires a deposit of any currency or token or the use of any credit card,
debit card, prepaid card, or other method of payment to activate the machine or device;
(8) Requires direct payment into the machine or device or remote activation of
the machine or device upon payment to the person offering the sweepstakes game;
(9) Requires the purchase of a related product at additional cost in order to
participate in the sweepstakes game or makes a related product available for no cost but
under restrictive conditions;
(10) Reveals a sweepstakes prize incrementally even though the progress of the
images on the screen does not influence whether a prize is awarded, or the value of any
prize awarded; or
(11) Determines and associates the prize with an entry or entries at the time the
sweepstakes is entered.
(b) Enter or entry means the act or process by which a person becomes eligible to
receive a prize offered in a sweepstakes.
(c) Entrant means a person who is or seeks to become eligible to receive a prize
offered in a sweepstakes (as defined by this Code).
(d) Gain means the direct realization of winnings.
(e) Gambling, whether used alone or as part of the phrase simulated gambling or
simulated gambling device, means risking any money, credit, deposit, or other thing of
value for gain contingent in whole or in part upon lot, chance, the operation of a
gambling device, or the happening or outcome of an event, including a sporting event,
over which the person taking a risk has no control, but does not include:
(1) Bona fide contests of skill, speed, strength, or endurance in which awards
are made only to entrants or the owners of entries, in the case of electronic gaming this
Subsection 1 of Section e does not apply;
(2) Bona fide business transactions which are valid under the law of
contracts;
(3) Other acts or transactions now or hereafter expressly authorized by law;
(4) Any game, wager, or transaction that is incidental to a bona fide social
relationship, is participated in by natural persons only, and in which no person is
participating, directly or indirectly in professional gambling;
(5) Any use of or transition involving a crane game, as defined in section 44-
39-109(9) of the Colorado Revised Statutes, as revised;
(6) Sports Betting conducted in accordance with 44-30-1501 et. seq. of the
Colorado Revised Statutes and applicable rules of the limited gaming control
commission.
(f) Prize means a gift, award, gratuity, good, service, credit, or anything else of value,
including a thing of value for a gain, as defined in this section, that may be transferred to
an entrant, whether or not possession of the prize is actually transferred or placed on an
account or other record as evidence of the intent to transfer the prize. Prize does not
include:
(1) Free or additional play;
(2) Any intangible or virtual award that cannot be converted into money,
goods, or services; or
(3) A paper or electronic coupon, whether issued to a player as a single ticket
or token or as multiple tickets or tokens, that is won in return for a single play of a
device; has a value that does not exceed the equivalent of twenty-five dollars; cannot be
exchanged or returned for money, monetary credits, or any financial consideration; and
cannot be used to acquire or exchanged for any product that is, contains, or can be used
as a constituent part of or accessory for:
1. Alcohol beverages;
2. Tobacco, tobacco products, marijuana, or smoking; or
3. Firearms or ammunition.
(g) Gambling Premises means any building, room enclosure, vehicle, vessel, or other
place, whether open or enclosed, used or intended to be used for professional gambling.
In the application of this definition, any place where a gambling device is found is
presumed to be intended to be used for professional gambling.
(h) Gambling Proceeds means all money or other things of value at stake or
displayed in on in connection with professional gambling.
(i) Professional Gambling means:
(1) Aiding or inducing another to engage in gambling, with the intent to
derive a profit therefrom; or
(2) Participating in gambling and having, other than by virtue of skill or luck, a
lesser chance of losing or a greater chance of winning than one or more of the other
participants.
(j) Profit means any other realized or unrealized benefit, direct or indirect, including
without limitation benefits from proprietorship, management, or unequal advantage in a
series of transactions.
(k) Simulated gambling device means a mechanically or electronically operated
machine, network, system, program, or device that is used by an entrant and that
displays simulated gambling displays on a screen or other mechanism at a business
location, including a private club, that is owned, leased, or otherwise possessed, in
affiliates, subsidiaries, agents, or contractors; except that the term does not include
bona fide amusement devices, as authorized in Pueblo Municipal Code 9-6-1 et. seq.,
that pay nothing of value, cannot be adjusted to pay anything of value, and are not used
for gambling. Simulated gambling device includes:
(1) A video poker game or any other kind of video card game;
(2) A video bingo game;
(3) A video craps game;
(4) A video keno game;
(5) A video lotto game;
(6) A video roulette game;
(7) A pot-of-gold;
(8) An eight-liner;
(9) A video game based on or involving the random or chance matching of
different pictures, words, numbers, or symbols;
(10) An electronic gaming machine, including a personal computer of any size
or configuration that performs any of the functions of an electronic gaming machine;
(11) A slot machine, where results are determined by reason of the skill of the
player or the application of the element of chance, or both, as provided by Section 9
(4)(c) of Article XVIII of the Colorado constitution; and
(12) A device that functions as, or simulates the play of, a slot machine, where
results are determined by reason of the skill of the player or the application of the
element of chance, or both, as provided by Section 9 (4)(c) of Article XVIII of the
Colorado constitution.
(13) Simulated gambling device does not include any pari-mutuel totalisator
equipment that is used for pari-mutuel wagering on live or simulcast racing events and
that has been approved by the State of Colorado director of the division of racing events
for entities authorized and licensed under Article 32 of Title 44 of the Colorado Revised
Statutes.
(j) Slot Machine means any mechanical, electric, video, electronic, or other device,
contrivance, or machine which, after insertion of a coin, token, or similar object, or upon
payment of any required consideration whatsoever by a player, is available to be played
or operated, and that, whether by reason of the skill of the player or application of the
element of chance, or both may deliver or entitle the player operating the machine to
receive cash premiums, merchandise, tokens, or redeemable game credits, or any other
thing of value other than unredeemable free games, whether the payoff is made
automatically from the machines or in any other manner. Slot machine does not include:
(1) A vintage slot machine model that was introduced on the market before
1984, does not contain component parts manufactured in 1984 or thereafter, and is not
used for gambling purposes or in connection with limited gaming; or
(2) Crane games.
(j) Sweepstakes means any game, advertising scheme or plan, or other promotion
that, with or without payment of any consideration, allows a person to enter to win or
become eligible to receive a prize.
(k) Vintage Slot Machine means any model slot machine that was introduced on the
market prior to January 1, 1984.
SECTION 3.
Section 11-2-902 of the Pueblo Municipal Code is hereby enacted to read as follows:
Sec. 11-1-902. Gaming Prohibition penalties - exemptions.
(a) Gambling prohibited. It shall be unlawful for any person to engage in gambling,
or professional gambling as defined by this Code. Gambling is a Class 2 municipal
offense.
(b) Possession of a gambling device. It shall be unlawful for any person to own,
manufacture, sell, transport, possess or engage in any transaction designed to affect the
ownership, custody, or use of a gambling device, knowing that it is to be used in
professional gambling. Possession of a gambling device is a Class 1 municipal offense.
(c) Gambling premises. It shall be unlawful for any person, as owner, lessee, agent,
employee, operator or occupant, knowingly to maintain or aid or permit the maintaining
of a gambling premises. Violation of this subsection is a Class 1 municipal offense.
SECTION 4.
Section 11-2-903 of the Pueblo Municipal Code is hereby enacted to read as follows:
Sec. 11-1-903. Electronic Gaming Prohibition penalties - exemptions.
(a) 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:
(1) The person receives, directly or indirectly, a payment or transfer of
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
(2) 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.
(b) Unlawful offering of a simulated gambling device is a Class 1 municipal offense.
(c) Without regard to any penalty imposed under subsections (2) and (3) of this
section, the City Attorney may apply to a court of competent jurisdiction for appropriate
additional relief, including:
(1) Injunctive relief to restrain and enjoin violations of this article;
(2) Such other and further relief as is available at law or in equity.
(d) The remedies set forth in this article shall not be exclusive, shall be cumulative,
and shall be in addition to any other relief or penalty imposed upon the person in
violation. City may further abate, seize or declare a nuisance the devices, or proceeds,
or both. City may suspend or revoke any business license issued to those businesses
associated with a gaming premises whether they own the devices or not including, but
not limited to business, liquor, marijuana, and tobacco licenses.
(e) 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.
(f) Nothing in this section:
(1) 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
(2) Limits or alters the application of the requirements for sweepstakes,
contests, and similar activities that are otherwise established under the laws of this
state.
(g) 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 (8) 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.
SECTION 5.
Section 11-2-904 of the Pueblo Municipal Code is hereby enacted to read as follows:
Sec. 11-1-904. Seizure of gambling devices, proceeds.
(a) All gambling devices, instruments and things used for the purpose of gambling,
as well as gambling proceeds, are hereby declared to be contraband and shall be subject
to seizure by any peace officer and may be confiscated and destroyed by order of any
judge of the Municipal Court. All gambling proceeds shall be forfeited to the City and
transferred by court order to the general fund of the City.
(b) If a gambling device is a vintage slot machine and is not operated for gambling
purposes for profit or for business purposes, it shall not be confiscated or destroyed
pursuant to Subsection 1 of this section. If a gambling device is confiscated and the
owner shows the Municipal Court that such gambling device is a vintage slot machine
and is not sued for gambling purposes, the Court shall order such vintage slot machine
returned to the person from whom it was confiscated.
SECTION 6.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and to implement the policies and procedures described therein.
SECTION 7.
This Ordinance shall become effective 30 days after final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on April 22, 2024.
Final adoption of Ordinance by City Council on May 14, 2024.
____________________________
President of City Council
Action by the Mayor:
Approved on _______________.
Disapproved on ______________ based on the following objections:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
____________________________
Mayor
Action by City Council After Disapproval by the Mayor:
Council did not act to override the Mayor's veto.
Ordinance re-adopted on a vote of ____________, on _____________
____________________________
President of City Council
ATTEST
________________________________
City Clerk
City Clerk's Office Item # R6
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: May 13, 2024
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Chris Noeller, Chief of Police
SUBJECT: AN ORDINANCE CREATING ARTICLE IX OF CHAPTER 1 OF TITLE XI
WITHIN THE PUEBLO MUNICIPAL CODE, ADDING SECTIONS 11-1-
901 THROUGH 11-1-904 THERETO, ENACTING PROVISIONS AND
PROHIBITIONS WITH RESPECT TO CERTAIN GAMING AND
GAMBLING DEVICES, AND PROVIDING PENALTIES FOR THE
VIOLATION THEREOF
SUMMARY:
Attached for consideration is a set of new Code provisions with respect to certain
gaming and gambling devices. These provisions will allow for enforcement through the
Municipal Court.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
Limited gaming is authorized within the cities of Central, Black Hawk, and Cripple Creek
under Article XVIII, Section 9 of the Colorado Constitution. In 2015, the Colorado
Assembly determined there was a need for additional legislation with respect to
simulated gambling devices, and subsequently passed HB15-1047. Despite state law
prohibiting the offering of such simulated gambling devices, and through independent
investigation, the Pueblo Police Department has determined such devices are in use
within the City of Pueblo. This Ordinance seeks to give municipal enforcement
authority to the Pueblo Police Department and jurisdiction to the Pueblo Municipal
Court.
FINANCIAL IMPLICATIONS:
The financial implications are unknown at this time. Enforcement of these provisions
may result in criminal prosecutions being instituted in Municipal Court which may
increase costs to some degree. The provisions under consideration allow for the
confiscation of the devices and gambling proceeds. Any gambling proceeds forfeited
Additionally, it is anticipated that these ordinances will lead to a reduction in other
crimes associated with such activities.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
Council can choose to reject the proposed provisions and violations thereof will not be
enforceable in Municipal Court.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
None