New law allowing for a more thorough examination of the illegitimate casinos in Colorado, sometimes known as “gray casinos,” would aid the state’s attempts to combat illicit online casinos and sports betting sites.

Cryptocurrency enables illegal casinos to circumvent the law

Colorado Governor Jared Polis has just enacted new rules that expand the Division of Gaming’s jurisdiction. Voters in Blackhawk, Cripple Creek, and Central City, Colorado, opted to legalize gambling. With the new guidelines, the Division will be able to investigate gaming outside of those three cities. This is intended to aid local communities in their efforts to shut down illicit gaming operations.

The new legislation is the outcome of a Denver7 special investigation into the state’s underground casinos. The television channel used a concealed camera to expose unlawful actions at so-called “adult gambling arcades” or “gray casinos” where slot machines are available. It was uncovered that these establishments circumvent Colorado’s stringent gambling regulations by paying gamers in bitcoin. The gamblers then use a crypto machine to swap the digital money for U.S. dollars. However, some of these companies are even more audacious. They provide gamers with cash directly in violation of state rules.

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The City of Aurora’s Crackdown

The third biggest city in Colorado, the City of Aurora, is also taking measures to address this issue. Curtis Gardner, one of the municipal councilors, recently established new regulations prohibiting the usage of the popular arcades at these establishments. In addition, the regulation would prohibit the use of cryptocurrencies as payment methods. The new regulations have been accepted by the whole council and will take effect in August. Additionally, Gardner wants to see additional state laws addressing this problem.

In addition, there are claims from the police department in Montrose, Colorado, that illicit gambling operations have caused considerable problems with crimes such as gunshots and robberies.

Dan Hartman, the head of Colorado’s Division of Gaming, has vowed to eliminate this gray gambling sector entirely and said that, in his opinion, the vast majority of arcade enterprises are illegal. The investigations that will be performed as a consequence of the new law will assist state and municipal authorities in determining whether or not the venues comply with the law.