Black Hawk, one of Colorado’s three gambling towns, has taken a proactive stance on online casinos, saying that they have no place in the state. In a unanimous vote, the city council joined the National Association Against iGaming (NAAiG), becoming the first municipality in the US to become a member.
There has never been a formal attempt to legalize online casinos in Colorado, though there were hints in 2023 that one might be coming. The council based its decision on a presentation from NAAiG Vice Chair Jason Gumer. According to him, legalizing online casinos could devastate Colorado’s economy, threaten local jobs, and create public health risks.
According to its website, NAAiG consists of casinos, local businesses, employees, unions, and advocacy groups that support local gambling but oppose online casinos, often referred to as iGaming.
Online casinos threaten public health
Gumer, who is also the Executive President and general counsel for Monarch Casino in Black Hawk, warned the city council that potential Colorado online casinos would be detrimental to public health. As reported by The Mountain-Ear, he said:
This is being able to kind of sit in your bed on your cell phone and spin the slot machine over and over.
As of now, there are only seven states in the United States that allow this, but Europe has had it for a while. We look at what’s happening in England, and they introduced [iGaming] as a savior for governments and for tax revenue… but nothing’s been further from the truth.
Black Hawk Mayor David Spellman echoed these concerns, highlighting the potential consequences of making gambling available anytime, anywhere:
Can you imagine when you can just gamble at work, even? I mean, this is a scourge. And so I think through the education that Jason’s talking about is the way to combat it.
Gumer argues Colorado’s economy would lose millions
Beyond public health concerns, Gumer warned about the potential negative impact of online casinos on the economy. He backed his claim by referencing a NAAiG-commissioned study by The Innovation Group. The study projects the following economic impact for Colorado:
- Losses of 2,050 jobs statewide, including 1,200 direct jobs in mountain towns like Black Hawk.
- Lost labor income of $129 million annually.
- Lost economic output of $520 million.
- Increase of $830 million for social costs due to gambling addiction, debt, and related problems.
Gumer also warned that legalizing iGaming would halt investment in new retail casinos. Companies like Monarch would no longer see a reason to expand or create jobs in Colorado. The Monarch executive added that Coloradans have historically rejected gaming expansion. He referenced a 2014 attempt where 70% of voters rejected adding slots at racetracks. Gumer also dismissed one of the main arguments for legalizing iGaming: people already gamble on illegal offshore casinos.
Online casinos in Colorado are unlikely in the near future
Gumer’s presentation was part of NAAiG’s effort to mobilize opposition to iGaming following rumors of a potential Colorado online casino legalization bill. However, if a proposal is to appear in the state’s legislative session, it would face an uphill battle. One major obstacle is Colorado’s Taxpayer Bill of Rights (TABOR). TABOR states that any new tax, tax rate increase, or change in tax policy must be approved by voters. Thus, legalizing and regulating online casinos would require a referendum.
Beyond TABOR, Colorado’s retail casino industry will likely be a prominent opponent, a trend seen elsewhere. However, unlike many other states, Colorado does not have major national casino operators that support iGaming, such as MGM Resorts or Caesars Entertainment. Instead, Colorado’s commercial casinos are independently operated and concentrated in three small mountain towns—Black Hawk, Central City, and Cripple Creek—where the economy is deeply tied to physical casino operations.
Since these towns rely heavily on casino-generated jobs and tax revenue, their leaders and business owners will likely resist iGaming. Given that, it wouldn’t be surprising if Central City and Cripple Creek follow Black Hawk in joining NAAiG.
While iGaming might not be an option soon, Coloradans can turn to sweepstakes casinos. As they operate under federal laws, these platforms have become an alternative to iGaming in many states without legal online casinos.
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