HB 22-1402

HB 22-1402, also known as the Responsible Gaming Grant Program, is a Colorado law that establishes a grant program aimed at promoting responsible gaming and addressing problem gambling in the state. The grants will be awarded by the Colorado Limited Gaming Control Commission to eligible applicants like state agencies, local governments, or nonprofits for projects that help with these goals. The bill also requires gaming operators to report their efforts to promote responsible gaming and limits certain promotional practices. Signed into law, this act provides funding from lottery proceeds and gaming revenue to support initiatives that raise awareness about the risks of gambling addiction and provide resources to those in need.

Official Summary

The act creates the responsible gaming grant program (grant program) in the department of revenue to promote responsible gaming and address problem gaming in the state. The Colorado limited gaming control commission (gaming commission), in collaboration with the behavioral health administration, is required to administer the grant program and award grants to eligible applicants from money in the responsible gaming grant program cash fund (cash fund), which is also created in the act. An "eligible applicant" means an agency of the state government, a local government, or, with certain exceptions, a nonprofit organization. To receive a grant, an eligible applicant must submit an application that includes the following information: The amount of grant money requested by the eligible applicant; How the eligible applicant will spend the grant money to address problem gaming or increase awareness of responsible gaming; Information concerning any current or past projects in which the eligible applicant has participated and that addressed responsible gaming or problem gaming; and Any other information required by rules promulgated by the gaming commission. Grantees may use grant money only for the purposes for which the grant money is awarded. On or before September 1, 2023, and on or before September 1 each year thereafter, each grantee must submit a report to the gaming commission concerning the use of grant money. On or before December 1, 2023, and on or before December 1 each year thereafter, the gaming commission must submit a summarized report to the legislative committees of reference and to the behavioral health administration. The gaming commission, in collaboration with the behavioral health administration, is required to promulgate rules to implement the grant program. The grant program is repealed, effective September 1, 2032. Before the repeal, the grant program is scheduled for a sunset review by the department of regulatory agencies. The act also requires the division of gaming (gaming division), on and after January 1, 2023, to operate a program to exclude certain individuals from all or certain gaming activities in the state. The gaming division must operate the exclusion program in accordance with rules promulgated by the gaming commission. The act also requires retail gaming licensees, sports betting operators, and internet sports betting operators (licensees) to annually submit a report to the director of the gaming division, which report describes the efforts of the licensee in the preceding state fiscal year to promote responsible gaming via advertising and other promotional methods and the licensee's plans concerning such promotional efforts in the current state fiscal year. The act also requires that on December 31, 2023, and on December 31 each year thereafter, any money credited to the wagering revenue recipients hold-harmless fund and not distributed within 2 years after being credited to the hold-harmless fund be transferred, as authorized by the gaming commission, to the cash fund. The act also requires that, for the 2022-23 state fiscal year and each state fiscal year thereafter, $2.5 million be transferred from the state share of the limited gaming fund to the cash fund. The act also requires the general assembly, for the 2022-23 state fiscal year, and for each state fiscal year thereafter, to appropriate $200,000 from the lottery fund to the state lottery division (division) to be expended by the division to pay for efforts to promote responsible gaming in the state. The act also limits the total amount of free bets that may be deducted on and after January 1, 2023, for the purpose of calculating the net sports betting proceeds of a sports betting operator or internet sports betting operator. Under current law, the Colorado lottery commission is required to promulgate rules that include the method for selling tickets or shares and the method to be used for selling instant scratch game tickets. The act removes a requirement that such rules must require all such sales to be on a cash-only basis. The act also removes existing language concerning individuals who are required by the gaming commission to be excluded or ejected from any licensed gaming establishment, which language is rendered redundant by the act's new exclusion language. For the 2022-23 state fiscal year, the act appropriates: $200,000 from the lottery fund to the department of revenue for use by the lottery division; and $2,500,000 from the cash fund to the department of revenue for use by the specialized business group.(Note: This summary applies to this bill as enacted.)

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