SB 23-259

Senate Bill 23-259, which was vetoed by the governor but is currently in a "signed" status (likely due to an error or confusion), would allow casinos licensed under Colorado’s Limited Gaming Act of 1991 to extend credit to customers for gambling purposes if certain conditions are met. These conditions include evaluating and confirming the customer's creditworthiness, ensuring they have no outstanding child support or state debts, and setting a minimum credit amount of $1,000. The bill also requires casinos to inform borrowers about repayment deadlines and outlines procedures for recovering unpaid debts. This affects licensed gambling establishments and their customers in Colorado. However, since it was vetoed, the bill is not currently enforceable unless there are further legislative actions taken to override the veto.

Official Summary

The act eliminates the prohibition on persons licensed by the "Limited Gaming Act of 1991" (licensee) from extending credit to another person for participation in limited gaming if: The licensee evaluates the person's credit and establishes the person as credit-worthy; The licensee does not have knowledge of a conviction of the person for committing specified unlawful acts; The licensee determines that the person has no outstanding child support debt or unpaid debt due to the state and does not owe restitution from a Colorado criminal case; and The amount of the extension of credit is at least $1,000. Additionally, the act specifies the documentation the licensee must maintain for any extension of credit and requires the licensee to inform every person to whom credit is extended, orally and in writing, that the financial obligations created must be fully paid to the licensee within 150 days. The act prohibits licensees from reducing their gaming tax burden through deducting unpaid credit from their gross proceeds. The act allows licensees to pursue all civil remedies at law to recover unpaid credit, as well as interest and reasonable recovery costs. Additionally, the act restricts licensees from settling or compromising the amount to be repaid until specific conditions are met. Finally, the act outlines record-keeping requirements for licensees that extend credit. VETOED by Governor May 23, 2023 (Note: This summary applies to this bill as enacted.)

Votes