Colorado Statewide Rule
Colorado Bingo-Raffle License Rules Under State Constitution
Key Facts
- Governing law
- Colo. Const. art. XVIII, § 2
- Licensing agency
- Colorado Secretary of State
- Eligibility
- Nonprofit, 5 years continuous existence
- License fee
- $100 new or renewal
- Net proceeds
- 100% to organization's lawful purposes
- Game staffing
- Unpaid bona fide members only
- Max fine
- $250 per violation (HB24-1326)
Summary
Colorado bars all lotteries and games of chance except licensed bingo and raffles run by charities. The Secretary of State issues bingo-raffle licenses only to religious, charitable, labor, fraternal, educational, firefighters', or veterans' organizations that have operated without profit and existed continuously in Colorado for five years. Net proceeds must go entirely to the organization's lawful purposes, and only unpaid members may run the games.
Section 2. Lotteries prohibited - exceptions. (2) No game of chance...shall be conducted...unless a license...has been issued... The secretary of state shall...issue a license...to any bona fide chartered branch or lodge or chapter of a national or state organization or to any bona fide religious, charitable, labor, fraternal, educational, voluntary firemen's, or veterans' organization which operates without profit to its members and which has been in existence continuously for a period of five years immediately prior to the making of said application for such license, and has had during the entire five-year period a dues-paying membership engaged in carrying out the objects of said corporation or organization... (4) Such games of chance shall be subject to the following restrictions: (a) The entire net proceeds of any game shall be exclusively devoted to the lawful purposes of organizations permitted to conduct such games. (b) No person except a bona fide member of an organization may participate in the management or operation of any such game. (c) No person may receive any remuneration or profit for participating in the management or operation of any such game.
Full Breakdown
Colorado's constitution flatly bans lotteries and games of chance, then carves out one exception: bingo and raffles run by nonprofit groups under a Secretary of State license. Colo. Const. art. XVIII, section 2(2) limits eligibility to a bona fide chartered branch, lodge, or chapter of a national or state organization, or a bona fide religious, charitable, labor, fraternal, educational, firefighters', or veterans' organization that has operated without profit to its members and existed continuously in Colorado for five years, with dues-paying members carrying out the organization's work throughout that period. The statutory companion, C.R.S. section 24-21-602(37), codifies the identical five-year test as the definition of "qualified organization" for licensing purposes under the Bingo and Raffles Law, C.R.S. section 24-21-601 et seq.
A qualified organization applies to the Secretary of State for a bingo-raffle license, which expires at the end of the calendar year issued and must be renewed annually. The current license fee is $100, and licensees also owe a quarterly administrative fee on total proceeds: none under $5,000, 0.45% online or 0.5% on paper for proceeds between $5,000 and $99,999, and 0.55% online or 0.6% on paper for proceeds of $100,000 or more, per the Secretary of State's published fee schedule.
Section 2(4) sets three hard limits on licensed games: the entire net proceeds must go exclusively to the organization's lawful purposes, only a bona fide member of the organization may manage or operate the game, and no one may receive remuneration or profit for doing so. Colorado voters have twice refused to loosen these limits, rejecting 2020's Amendment C and 2022's Amendment F, both of which would have let licensees hire paid managers, so the unpaid-member-only rule remains in force statewide.
Violations & Penalties
Operating bingo or raffles without a Secretary of State license, or breaking the license terms, exposes an organization to suspension, revocation, and fines. The Secretary of State can suspend a license for up to ten days pending investigation or a hearing, and can revoke it outright; a revoked licensee cannot reapply for up to one year. Under 2024's HB24-1326, the Secretary of State's maximum fine is $250 per violation, and fines can no longer substitute for suspension or revocation on serious violations.
Frequently Asked Questions
Who can get a bingo-raffle license in Colorado?
Can a charity pay someone to run its bingo or raffle games?
Where does the money from a licensed raffle or bingo game have to go?
How much does a Colorado bingo-raffle license cost?
What happens if a licensed organization breaks Colorado's bingo-raffle rules?
Sources
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