Internet gambling is illegal under state and federal laws. Colorado law prohibits the transmission or reception of gambling information by any means. The federal Unlawful Internet Gambling Enforcement Act, signed into law in October 2006, prohibits online gamblers from using credit cards, checks and electronic fund transfers to place and settle bets. Further, the federal 1961 Wire Act also prohibits the use of wire communications in interstate or foreign commerce for the placing of bets or wagers or information assisting in the placing of bets or wagers.
Unlike participants in legalized forms of gambling, persons who wager on online casinos have no recourse with any state agency should they not be paid for winning wagers or have any other dispute with the entity with which they are placing their bets. Furthermore, players are not guaranteed odds. By statute, slot and video machines in Colorado casinos must pay out between 80 percent and 100 percent. Online casinos are not required to have minimum payouts and are under no form of regulatory control to ensure compliance with any payout controls.
Many online sites advertise they are "legal" and "licensed" forms of wagering. They may be legal or licensed where the bets are received, but it remains illegal to place bets from Colorado with these businesses.
In addition, the Colorado Limited Gaming Control Commission prohibits persons and businesses licensed in the casino industry in Colorado from having any involvement with internet gaming sites that can be accessed by Colorado residents.