What makes a poker tournament legal or illegal?
The main distinction is whether the poker being played is considered “gambling.” For “gambling” to occur, three elements must be present: consideration, chance, and reward. These elements are sometimes expressed as “payment, luck, and prize.” The first level of inquiry, then, is whether all three of these components are present, because by eliminating any one of them, the activity would not meet the definition of “gambling” as set forth in Colorado law.For example, if the consideration component is eliminated and no fee, buy-in or other money is required or solicited from the participants in a poker tournament, then prizes may be awarded to the player(s) who perform well in the tournament. This is how several organized poker tournaments are able to operate legally outside the three gaming towns.
The main distinction is whether the poker being played is considered “gambling.” For “gambling” to occur, three elements must be present: consideration, chance, and reward. These elements are sometimes expressed as “payment, luck, and prize.” The first level of inquiry, then, is whether all three of these components are present, because by eliminating any one of them, the activity would not meet the definition of “gambling” as set forth in Colorado law. For example, if the consideration component is eliminated and no fee, buy-in or other money is required or solicited from the participants in a poker tournament, then prizes may be awarded to the player(s) who perform well in the tournament. This is how several organized poker tournaments are able to operate legally outside the three gaming towns. On the other hand, if an organization charges a donation, fee or other buy-in for a poker tournament or other event, then it cannot legally distribute prizes based upon who wins or plays well
