The City of Lakewood has shut down three secret gaming arcades city leaders say were violating state laws, following a Denver7 Investigates undercover investigation. Read more from Investigative Reporter JennKovaleski:
That undercover investigation revealed that Lakewood had several of these arcades, or gray casinos, operating within the city while state officials and local leaders in other cities looked to crack down on these businesses.
Lakewood officials had previously declined interview requests, and Paul said that was to protect an active police investigation. Gray casinos are somewhat common in strip malls across the state. Denver7 Investigates’ hidden camera investigation found that the businesses tried several different ways to get around Colorado’s gaming law, which only permits gambling operations in the towns of Blackhawk, Central City and Cripple Creek.
While other municipalities, such as Montrose and Aurora, have taken steps at the municipal level to deter these gray casinos, Paul said Lakewood took action under existing state law that makes it illegal for “games of skill” to payout monetary rewards. However, he feels the state could do more to shutter these businesses so they don’t pop up in other areas.
“We’ll be working to get this gray market out of Colorado,” Division of Gaming Director Dan Hartman said to Denver7 Investigates shortly after the law was passed.
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