DENVER – A Wyoming man is suing current and former Colorado state officials, along with the cities of Grand Junction, Pueblo and Colorado Springs for their respective roles in attempting to shut down his business, in what he calls a violation of his constitutional rights.
Civil Rights Litigation Group, a Denver-based public interest law firm, filed the suit earlier this month in federal district court on behalf of Trey Franzoy, who owns and operates both Patriot Contest & Games, LLC and Charlie Chedda’s, LLC.
In addition to the three cities, defendants named in either an official capacity, individual capacity or both in the suit are: Christopher Schroder, director of the Colorado Division of Gaming; Michael Phibbs, senior director for the Colorado Department of Revenue; former Division of Gaming Director Daniel J. Hartman; and chief of investigations and deputy director at the Colorado Division of Gaming Kirsten Gregg.
The suit challenges “unconstitutional enforcement actions” against Franzoy’s companies, which he says operate skill-based contest machines, rather than the “gambling devices” as alleged by those named in the suit.
On November 22, 2020, according to the suit, an independent gaming laboratory conducted a forensic examination of Franzoy’s Triangle Games Skill-Based Amusement System, concluding that the devices operate based on player skill, not chance. In February 2021, the elected district attorney for Colorado’s 21st Judicial District (Mesa County) incorporated that analysis into a settlement agreement, committing “not to prosecute the Farley-defined configuration as illegal gambling,” the filing says. “Despite this settlement and forensic certification, the Division of Gaming launched a statewide enforcement campaign. Division leadership later admitted it lacked the expertise to enforce the very rules it invoked.”
The suit continues that in in May, 2024, gaming officials circulated an email seeking “clarification of definitions of gambling devices.” One week later, the chief of investigations acknowledged that division staff “are not considered experts and [could not] testify that a device is a slot machine.”
“The Constitution forbids the government from enforcing secret or undefined rules,” Edward C. Hopkins Jr., attorney for Franzoy told Complete Colorado. “State officials admitted in private that they could not define a ‘gambling device’ precisely enough to take the actions they took against our clients, yet they seized property and destroyed businesses based on that very label. We are asking the court to replace this bureaucratic guesswork with the rule of law.”
The full timeline of events can be found in the media release and filing here.
The suit alleges violations of Franzoy’s Fourth, Fourteenth and First Amendment rights.
Franzoy, who is requesting a jury trial, is seeking action that establishes that “Defendants’ enforcement actions violate the Constitution; injunctive relief requiring the Division of Gaming to publish objective criteria and afford neutral review before issuing enforcement directives; compensatory and punitive damages,” which include an estimated $118,762 in loss of use, more than $150,000 in expenses for continued equipment rental, and other losses of revenues and business opportunities. He is also asking for attorney fees and expenses and interest at the maximum rates allowed under law.
“I followed every rule and secured a forensic certification proving my business is lawful,” Franzoy told Complete Colorado. “The state ignored that proof and seized my livelihood without ever giving me a fair hearing. I am filing this suit so no other Colorado business owner has to face such arbitrary destruction.”
