Current through Register Vol. 47, No. 5, March 10,
2024
The purpose of Rule 5 is to establish the types of sports
betting activities to be conducted by sports betting licensees, including to
establish and provide the specific information required to request the
authorization of new sports events; to establish the prohibited sports events;
to establish the sports events previously authorized; and to establish
procedures and fee requirements for sports betting licensees to offer betting
on sports events. The statutory basis for Rule 5 is found in sections
44-30-201, C.R.S., 44-30-202,
C.R.S., 44-30-203, C.R.S., 44-30-302, C.R.S., and part 15 of article
30 of title
44, C.R.S.
5.1
Approved sports events and
leagues.
(1) Persons licensed to offer
sports betting may accept wagers on those sports events and leagues approved by
the Commission, which shall be reflected on the Official Sports Betting Catalog
of Events and Wagers.
(2) Where a
sports league is authorized, persons licensed to offer sports betting may
accept wagers on all sports events conducted by such sports league, where the
sports event is of the kind generally conducted by that league.
(3) The Director or designee shall post the
Official Sports Betting Catalog of Events and Wagers on the Division website.
As new events and/or leagues are authorized, the Director or designee shall
update the Official Sports Betting Catalog of Events and Wagers, and inform the
Master, Sports Betting Operator and Internet Sports Betting Operator licensees
and applicable sports governing bodies of those changes. Unless otherwise
stated by these Rules, all approved sports events or wagers may be offered by
all Sports Betting Operators.
5.2
Requests to authorize new Sports
Events.
(1) Sports betting licensees
may request that the Division, through the authority delegated by the
Commission, authorize sports events, leagues or bets not already authorized and
included on the Official Sports Betting Catalog of Events and Wagers. The
request must be approved prior to any licensee offering the new event or wager
to the public. Requests made less than three (3) business days before a new
even for which the request is made may be denied at the Division's
discretion.
(2) The request shall
be in a form as specified by the Division, including:
(a) The name of the sports governing body;
and
(b) A description of its
policies and procedures regarding event integrity.
(3) Where a sports betting licensee wishes to
authorize a sports event conducted by an approved sports league of a type not
generally conducted by that sports league, the Division may contact the sport's
governing body for input.
(4) The
Director or Director's designee will consider the request, all provided
materials and any relevant input from the sport's governing body or conductor
of the sports event prior to authorizing a sports event, league or portion of a
sport or athletic event. The wager being requested must meet the following
criteria before the request may be approved:
(a) The outcome is not determined solely by
chance;
(b) The outcome can be
verified;
(c) The event generating
the outcome is conducted in a manner that ensures sufficient integrity controls
exist so the outcome can be trusted;
(d) The outcome is not affected by any bet
placed; and
(e) The event is
conducted in conformity with all applicable laws.
5.3
High School sports
events.
(1) Betting on high school
sports and equivalent level club or specialty sports events is prohibited and
shall not be authorized.
5.4
Fixed Odds or Price on Horse
Wagering.
(1) For the purposes of this
Rule 5.4 only:
(a) "The governing body" means
the racing commission, governmental or other organization that is entrusted
with the regulatory duty to ensure integrity of the outcome, from the racetrack
where the race is contested.
(b)
"The owner" means the owner(s) of the animal in the contest.
(2) Sports betting licensees may
request, under specific conditions, that the Commission authorize Horse Racing
as sports events and bets. Any approval of Horse Racing as sports events and
bets will be specific to the sports betting licensee requesting the event or
bet.
(3) On the application for
Horse Racing as sports events and bets, sports betting licensees must affirm
the licensees have received consent from the following parties:
(a) To offer in-state horse racing events as
a sports event, sports betting licensees must affirm on the application that
the licensee has received consent from the following parties:
(i) The Colorado Racing Commission;
(ii) The racetrack where the race is
conducted; and
(iii) The
association that represents the horse persons competing at all licensed class B
Colorado horse track(s). This consent may be a part of the consent provided by
the consent received in 5.4(3)(a)(ii).
(b) To offer horse racing events that occur
outside the state of Colorado, but inside the United States, as a sports event,
sports betting licensees must affirm the licensees have received consent from
the following parties:
(i) The host racing
commission, or if applicable Breed Specific Racing Commission, in the state
where the race is conducted;
(ii)
The Colorado Racing Commission;
(iii) All licensed class B Colorado horse
track(s);
(iv) The racetrack where
the race is conducted; and
(v) The
association that represents the horse persons competing at the racetrack where
the race is conducted. This consent may be a part of the consent provided by
the consent received in 5.4(3)(b)(iv).
(vi) For horse racing events, operators must
also obtain the consent of the association that represents the horse persons
competing at all licensed class B Colorado horse track(s). This consent may be
a part of the consent provided by the consent received in
5.4(3)(b)(iii).
(c) To
offer horse racing events that occur outside of the United States as a sports
event, sports betting licensees must affirm the licensees have received consent
from the following parties:
(i) The Colorado
Racing Commission;
(ii) All
licensed class B Colorado horse track(s);
(iii) The racetrack where the race is
conducted; and
(iv) For horse
racing events, the association that represents the horse persons competing at
all licensed class B Colorado horse track(s). This consent may be a part of the
consent provided by the consent received in 5.4(3)(c)(ii).
(4) To offer an Esport contest
that is based on the sport of racing horses, and has been approved by the
Director, sports betting licensees must affirm the licensees have received
consent from the following parties:
(a) All
licensed class B Colorado horse track(s);
(b) For horse racing events, the association
that represents the horse persons competing at all licensed class B Colorado
horse track(s). This consent may be a part of the consent provided by the
consent received in 5.4(4)(a).
(5) Licensees must submit the application at
least 72 hours prior to any new scheduled event requested. It shall be the
responsibility of the operator requesting the event to obtain all the consents
provided for in these rules.
(6)
The application shall be in a form as specified by the Division, including:
(a) The name of the horse meet, sport
event(s) or race;
(b) Host
track;
(c) A description of its
policies and procedures regarding event integrity; and
(d) Whether the outcome can be
verified.
(7) The
Director or Director's designee will consider the following factors prior to
determining whether to authorize Horse Racing as sports events:
(a) Whether all required consents have been
submitted;
(b) Whether the outcome
is determined solely by chance;
(c)
Whether the outcome can be verified;
(d) Whether the event generating the outcome
is conducted in a manner that ensures sufficient integrity controls exist so
the outcome can be trusted;
(e)
That the outcome is not affected by any bet placed; and
(f) Whether the event is conducted in
conformity with all applicable laws.
(8) The Commission has a duty to promulgate
rules to ensure that activities related to fixed odds racing are conducted
honestly and competitively. Where the holding, intermediary, or subsidiary
company of a sports betting operator, internet sports betting operator, or
master licensee is the holding, intermediary, or subsidiary company of the
host-track, the sports betting licensee must provide documentation of the
following conditions with the application for the racing sports event:
(a) That the consent given by the host-track
to the sports betting licensee must be given to all licensed Sports Betting
operations in Colorado;
(b) That
prior to commencing wagering on those events, any other consents given to the
sports betting licensee related to the racing sport event, as required by Rule
5.4(3), be given to all licensed Sports Betting operations in Colorado;
and
(c) That the host-track shall
make available to all licensed Sports Betting operations in Colorado, that
racing sport event, race or content on the usual and customary terms, including
price or commission, should they also wish to contract for that racing sport
event, race or content.
(9) A Content Provider that holds a sports
betting license, has exclusive rights to racing content, and, is not connected
to a licensed Sports Betting operator, Internet Sports Betting Operator or
Master License, shall make available to all licensed Sports Betting operations
in Colorado, that racing content on the usual and customary terms, including
price, commission or discounts. A Content Provider may secure the consents
required in this 5.4 (3) for a contracted Sports Betting Operator.
Additionally, where more than one licensed Content Provider is operating in the
state, those operators shall use their best efforts working together to provide
the best content experience to the Colorado Sports bettor.
(10) Payment on winning bets shall be made
based on the order of finish posted and declared "official" unless otherwise
stated in the house rules of the Sports Betting operation.
(11) The Director or Director's designee may
request the consent of the Colorado Racing Commission in advance for the
conduct of sports betting on Horse Racing as sports events and bets, for all
sports betting operations, to fulfill the requirements of the consent needed in
5.4(3).
(12) Nothing in these rules
shall usurp on the authority of the Colorado Racing Commission and its
regulation and conduct of Pari-Mutual Racing and wagering in
Colorado.
(13) This Rule 5.4 will
expire twenty-four (24) months from the approval date of this Rule 5.4, unless
otherwise repealed or extended by the Limited Gaming Control Commission prior
to the expiration date. Any hearing, investigation, accusation, or other matter
initiated by or pending before the Commission or the division of gaming prior
to the expiration date will continue until completion of such matter including
any associated administrative proceedings. Any and all authorizations for
sports events that are authorized pursuant to this Rule 5.4 are voided as of
the expiration date, twenty-four (24) months from the approval date of this
Rule 5.4, unless otherwise repealed or extended by the Commission prior to the
expiration date.