While some business owners credit the tournaments with helping them keep their doors open, the legality of the games is being questioned by the state's top law enforcement official.
Tournaments are generally free to enter, and instead of winning each other's money, participants can win prizes from the business, such as a gift certificate.
The Colorado Division of Gaming says the tournaments are OK as long as the businesses don't charge entry fees.
But the state attorney general's office says they're illegal because businesses are profiting from unlicensed games of chance through increased beverage and food sales. Operating an illegal gambling business is a misdemeanor that can bring a sentence of up to six months in jail and a $750 fine. It also can prompt the revocation of a liquor license.
Local prosecutors can decide whether to enforce the law against tournaments, but so far, none have taken action against a business for running a no-entry-fee tournament.
