BASIS AND PURPOSE FOR RULE 1
The purpose of Rule 1 is to present definitions of various terms used throughout the rules of the Colorado Limited Gaming Control Commission so that the rules can be uniformly applied and understood. The statutory basis for Rule 1 is found in sections 12-47.1-103, C.R.S., 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., and 12-47.1-302, C.R.S.
RULE 1     GENERAL RULES AND REGULATIONS
47.1-106     Definitions.

(13.5)	“Gaming device” or “gaming equipment” includes, in addition to the definition set forth in section 12-47.1-103(10), C.R.S., any progressive system, slot monitoring or control system, ticket redemption kiosk, or cashless system., and also includes any “physical or electronic versions,” pursuant to section 12-47.1-103(10), (19), C.R.S., to the extent such physical or electronic versions function in the manner of:  Eff  04/30/2007

(a)	slot machines;

(b)	the games of blackjack, craps, poker, or roulette as defined in section 12-47.1-103(4), (5.7), (22), (25.5), (26), C.R.S.;

(c)	tables used for blackjack, craps, poker, and roulette;

(d)	cards used to play blackjack or poker; or

(e)	dice used to play craps.
(14)      “Gaming employee” means, in addition to the definition set forth in section 12-47.1-103(11),
(a)  	All persons employed by licensed manufacturers or distributors or associated equipment suppliers who install, repair or maintain gaming devices or equipment on the premises of licensed operators or retailers, either directly or by remote access; and Eff  12/30/2008

BASIS AND PURPOSE FOR RULE 3
The purpose of Rule 3 is to establish and provide the specific information required on license applications; to establish yearly license fees for each type of license; to establish nonrefundable application fees; to establish investigation fees for certain applicants and deposit procedures for investigation fees; to establish procedures for conducting background checks on applicants and other interested persons and assessing the costs of such background checks; to require certain information regarding the premises the applicant wishes to be licensed, and to provide a procedure for approval of modifications of such premises; and to provide for the issuance of conditional, temporary, and duplicate licenses. The statutory basis for Rule 3 is found in sections 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-302, C.R.S., and part 5 of article 47.1 of title 12, C.R.S.
RULE 3  APPLICATIONS, INVESTIGATIONS AND LICENSURE
47.1-302     Applications.
(2)    	Renewal applications for manufacturer-distributor, associated equipment supplier, operator, and retail license must be received by the Division 120 days before the expiration of the current license. Renewal applications for support employee and key employee licenses must be received by the Division 30 days before the expiration of the current license. Renewal applicants who fail to submit their completed applications when due shall not be considered to have made a timely and sufficient application for renewal, as such term is used in 24-4-104(7) C.R.S. (47.1-302(2) Perm. 10/30/96.
47.1-303  License Fees.
A non-refundable license fee for a two-year license must accompany an application for licensure in the following amounts:   Eff  08/06/2008

(1)	Original and renewal Type 1 slot machine manufacturer or distributor license	$3,000.00	
(2)	Original and renewal Type 2 slot machine manufacturer or distributor license	$6,000.00	
(3)	Original and renewal Type 1 associated equipment supplier license	$3,000.00	
(4)	Original and renewal Type 2 associated equipment supplier license	$6,000.00	
(3)(5)	Original and renewal Type 1 operator license	$3,000.00	
(4)(6)	Original and renewal Type 2 operator license	$6,000.00	
(5)(7)	Original and renewal Type 1 retail gaming license	$4,500.00	
(6)(8)	Original and renewal Type 2 retail gaming license	$6,500.00	
(7)(9)	Original key employee license	$250.00	
(8)(10)	Original support employee license	$100.00	
(9)(11)	Renewal key employee license	$200.00	
(10)(12)	Renewal support employee license	$60.00	
(47.1-303(6 & 7) temp. 06/21/95, perm. 10/30/95) (47.1-303 temp. 7/1/96 perm. September 30, 1996, 47.1-303 (5 & 7) amended temp 07/01/00 perm 07/30/00)  Eff  08/06/2008 Amended 11/30/2012
47.1-316     Notice of hearing.
Notice by letter will be given by the Division to all applicants for slot machine manufacturer or distributor licenses, associated equipment supplier licenses, operator licenses, or retail gaming licenses of the time and place when their applications for gaming licenses will come before the Commission for consideration. Such applicants may attend the meetings of the Commission. The Commission will notify each applicant of the disposition of the application. (47.1-316 temp. 9/30/91, perm. 11/30/91)

BASIS AND PURPOSE FOR RULE 4
The purpose of Rule 4 is to specify the rights, responsibilities, and duties of licensees; specify certain duties of licensees related to permitting access to the Division of information, records, and premises controlled by the licensee; require licensees to maintain sufficient financial reserves; establish restrictions on the use of shills and proposition players; grant permission to use lammers; require that certain information be publicly posted; direct the licensee to prohibit certain conduct; and establish procedures for patron disputes, dissolution of corporations, transfers of interests and terminations of licensee employment or licensure. The statutory basis for Rule 4 is found in sections 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-301, C.R.S., and 12-47.1-503, C.R.S.
RULE 4    RIGHTS AND DUTIES OF LICENSEES
47.1-405   Information to be furnished by licensee
(3)    	Each licensed retailer, operator, associated equipment supplier, manufacturer or distributor must immediately report to the Division the name, date of birth, and social security number of all persons who obtain an ownership, financial, or equity interest in the licensee of five percent or greater, or who have the ability to control the licensee, or who have the ability to exercise significant influence over the licensee, or who loan any money or other thing of value to the licensee. (47.1-405(3) perm. 10/30/99) 
(6)    	All licensed manufacturers, distributors, associated equipment suppliers, operators, and retailers must report to the Division any discovered or suspected plan, scheme, design, device or other methods of cheating that may compromise the integrity of any gaming device sold or offered for sale, offered for play, or used for any other gaming purpose within the state of Colorado by such licensee. A report shall be made as soon as possible after the discovery of such cheating plan, scheme, design, device or method, but not later than 14 calendar days if the reporting licensee is a manufacturer, or distributor, or associated equipment supplier, and not later than 7 days, if the reporting licensee is an operator or retailer. (47.1-405(6) perm. 10/30/99)  Amended 11/30/2012 
47.1-406   Inspections.
A retail licensee, licensed manufacturer or distributor, licensed associated equipment supplier and licensed operator must immediately make available for inspection by the Commission, Director, or its agents or investigators, local sheriffs, or their agents or investigators, and police departments upon demand, all papers, books, and records produced, used or kept in connection with limited gaming, and all portions of the premises where gaming is conducted or where gambling devices or equipment are manufactured, sold, used, displayed, kept, or distributed. Upon demand, employees and agents of the Commission, Division, local sheriffs, and police departments, must be given immediate access to any portion of the premises of a retail licensee, manufacturer or distributor, associated equipment supplier, or operator for the purpose of inspecting or examining records or documents, gaming devices or equipment, or the conduct of gaming activity.
47.1-420   Transfers of interest.
Except as provided in Rule 4.5, no person may sell, lease, purchase, convey, or acquire an interest in a retail, operator, associated equipment supplier, or manufacturer/distributor licensee or business without the prior approval of the Commission. (47.1-420 temp. 7/1/93, perm. 8/30/93, amended perm. 11/30/03)

BASIS AND PURPOSE FOR RULE 4.5
The purpose of Rule 4.5 is to establish specific reporting procedures and approval requirements for transfers of interests and other involvement with publicly traded corporations directly or indirectly involved in gaming in Colorado. The statutory basis for Rule 4.5 is found in sections 12-47.1-201, 12-47.1-203, 12-47.1-302, 12-47.1-504, 12-47.1-511, and 12-47.1-801, C.R.S. (1991).
RULE 4.5  PUBLICLY TRADED CORPORATIONS AND PUBLIC OFFERINGS OF SECURITIES
47.1-4.506   Submission of Proxy and Information Statements.
Each publicly traded corporation which is licensed as an operator, retailer, associated equipment supplier, or slot machine manufacturer or distributor under the Act, shall, within 5 days after distributing any proxy statement subject to Regulation 14A of the SEC or any information statement subject to Regulation 14C of the SEC to its security holders, submit such proxy statement or information statement to the Division.
47.1-4.507   Reporting Requirements.
(1)    	Whenever any filing on Form 10-Q, Form 10-K, Form 8-K, Form 1-A, Registration Statement SB-2, Registration Statement 10-SB, Report 10-KSB, Report 10-QSB, Schedule 13e-3 or Schedule 14D-9 or required by Rule 14f-l promulgated pursuant to the 1934 Act is filed with the SEC or with any national or regional securities exchange by a publicly traded corporation which is licensed as an operator, retailer, associated equipment supplier, or slot machine manufacturer or distributor under the Act, such publicly traded corporation shall, within 5 business days after the filing with the SEC, electronically notify the Division that such filing has taken place, (amended perm. 11/30/03)
(2)    	Whenever a publicly traded corporation which is licensed as an operator, retailer, associated equipment supplier, or slot machine manufacturer or distributor under the Act receives any material document filed with the SEC by any other person relating to such publicly traded corporation, it shall, within 10 days following such receipt, electronically notify the Division that such document receipt has occurred. (amended perm. 11/30/03) Page 19.05
(3)    	Each publicly traded corporation which is licensed as an operator, retailer, associated equipment supplier, or slot machine manufacturer or distributor under the Act shall file with the Division annually at the time of license renewal a list of the recordholders record holders and beneficial owners (to the extent the later is known) of its voting securities or more frequently as such list is prepared.
(5)    	Whenever a publicly traded corporation which is licensed as an operator, retailer, associated equipment supplier or slot machine manufacturer or distributor under the Act is informed that any person determined by the Commission to be a controlling person in respect of such publicly traded corporation has disposed of any of such publicly traded corporation's voting securities, such publicly traded corporation shall thereupon promptly report such information to the Division.
47.1-4.508    Required Charter Provisions.
The following provisions must be included in the articles of organization or similar chartering documents of every entity licensed as an operator, retailer, associated equipment supplier, or slot machine manufacturer or distributor under the Act:
47.1-4.514   Definition of ownership interest.
(3)    	For purposes of Section 12-47.1-835, C.R.S., a person shall not be deemed to have a “substantial interest” in a manufacturer, distributor, operator, associated equipment supplier, or retailer licensee if such person's sole ownership interest in such licensee is through the ownership of less than five percent (5%) of the voting securities of (a) such licensee if such licensee is publicly traded, or (b) a publicly traded affiliated company of such licensee (unless such person exercises voting rights with respect to five percent (5%) or more of such publicly traded company's outstanding voting securities).

BASIS AND PURPOSE FOR RULE 12
The purpose of Rule 12 is to establish a procedure for the testing and approval by the Commission of gaming devices and equipment, to establish requirements for the gaming devices and equipment to be used in limited gaming in Colorado, and to establish procedures for the storage of gaming devices and equipment in compliance with section 12-47.1-302 (2), C.R.S. The statutory basis for Rule 12 is found in sections 12-47.1-201, C.R.S., 12-47.1-203, C.R.S., 12-47.1-302, C.R.S., and 12-47.1-806, C.R.S.
RULE 12  GAMING DEVICES AND EQUIPMENT
47.1-1201  Device and Equipment Approval.
(2)  	Each individual slot machine component part, and table game must be inspected for proper settings/optioning/rule text (as applicable) by the offering retailer or operator before it is used for limited gaming. Each licensed manufacturer, distributor, associated equipment supplier, operator or retailer will be required to ensure that all media storage devices and slot machines shipped and offered for play in the State’s limited gaming areas are approved for use in the State of Colorado. (amend. perm. 03/30/02)  
(3)  	No licensed manufacturer, distributor, associated equipment supplier, operator, or retailer shall sell, offer for sale, offer for play, or use for any other gaming purpose any slot machine or component part that the licensee knows, or reasonably should know, will malfunction in any manner that affects game play or the accuracy of the required meters. Licensed manufacturers and distributors and licensed associated equipment suppliers shall notify the Division in writing within seven days of the discovery of a malfunction that affects game play or the accuracy of the required meters in a model of slot machine, component part, or game program submitted and approved for use in Colorado. (47.1-1201(1) added perm. 10/30/99)
47. 1-1202  Testing.
(1)	
 (b)  	Licensed manufacturers and distributors and licensed associated equipment suppliers shall make available upon request to the Division of Gaming any slot machine, device or equipment for the Division to temporarily possess and use for review, training and/or investigative purposes. The Division’s request shall be made in accordance with Division procedures and shall be approved by the Director.   Eff  03/02/2007
(5)    	All devices, including slot machines, equipment and computerized systems, required to be tested under this section shall be tested to the standards established by this Rule 12 at the time the device is tested. Amendments to this Rule 12 shall not be retroactively applied to any device tested and approved before the effective date of the amendment unless the device is required to be retested at the independent laboratory after the effective date as the result of any modification, alteration or upgrade. A retest shall be performed to the new standards unless the manufacturer or associated equipment supplier can demonstrate to the Division that the new standards would hinder the design of the device or would otherwise pose a hardship due to capacity limitations in the device’s originally approved platform.   Eff  03/02/2007
47.1-1242	Software requirements for percentage payout.
(3)	Whenever a licensee offers a progressive jackpot as a part of the slot machine payout, the amount of the payout may not be included in the theoretical payout percentage for purposes of satisfying the minimum and maximum pay out requirements specified in this section, unless some or all of the progressive parameters or contribution amounts are guaranteed by the game.  In those cases, the minimum values ensured by the game shall be used to determine the theoretical payout percentage.  (47.1-1242 perm.09/30/97)

47.1-1244    Progressive slot machines defined.
(1)    	A progressive slot machine game is a slot machine game with an award that increases based on the placement or result of a wager, including coin, token or credit play.
47.1-1272 Types of tickets. 
(1) 	A TITO-enabled slot machine must be capable of generating online THREE types of tickets:, and may be capable of generating online tickets, offline tickets and or delayed tickets.  Amended 7/1/13