The state of Colorado has announced that it has ruled that online gambling cafes are illegal due to the fact that they de facto gambling operations and need to be approved by voters in order to be legal.
The decision comes after the Colorado Department of Revenue consulted the Colorado Attorney General, and ruled: "Because all three elements: consideration, chance, and prize are present, under Colorado law, the activity occurring at sweepstakes cafes in Colorado constitutes illegal gambling."
With the ruling law enforcement is now able to act on the cafes, prosecuting them for offering illegal betting to residents of the Centennial State. It is thought that there are roughly 40 online betting cafes in Colorado.
For their part the cafe owners claim that they are legal as they operate according to various sweepstakes rules, and are attempting to get state legislators to pass a law in order to fully make themselves legal within state borders.
Casino Listings will update this story as more developments arise.