Texas Hold ‘Em tournaments are all the rage.  Local watering holes often host tournaments to encourage patronage.  If your association is considering holding a tournament as a social activity for members of the association or as a funding event, there are some considerations to be aware of to keep your association, and its members, from losing their shirts to the gaming commission.
 
Colorado law prohibits gambling (except, of course, if you are in Blackhawk, Central City, or Cripple Creek).  Colorado law (C.R.S. §18-10-102(2)) defines gambling as "risking any money, credit, deposit, or other thing of value for gain contingent in whole or in part upon lot, chance, the operation of a gambling device, or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control." 
 
If an association wishes to hold a Texas Hold ‘Em tournament, to beat the odds of the gambling laws, no money or other thing of value can be at risk.  In other words, players cannot play for real money.  Also, we do not recommend admission or entry fees be charged for individuals to enter the tournament. 
 
Playing for fake or “scrip” money is acceptable as long as the scrip money is not used as a medium of exchange.  For example, using scrip money won at the poker table to bid on items at an auction would give the scrip money an exchange value, and as such, would be a violation of the gambling law.  Similarly, using scrip money to exchange for prizes, such as a new TV in exchange for $500 in play money, would also be in violation of the gambling law. 
 
Even though an association cannot allow players to play for real money or require an admission fee to play in a Texas Hold ‘Em tournament, an association could charge for food or drinks served at such a tournament as long as the money paid for the food or drinks is not tied in any way to betting or participating in the tournament.

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