In the legislature, it appears the biggest struggle for Coloradans is “$20 beer at a Nuggets game, the $10 water at the airport or the $80 Tylenol at the emergency room,” state Rep. Yara Zokaie, a Fort Collins Democrat, said during a news conference at the state Capitol. On the surface it sounds great, who doesn’t want cheaper beer at a game? What is in the new bill that will radically alter Colorado real estate? What do beer and Tylenol prices have to do with other businesses in Colorado?
Why is 20 dollar beer the biggest problem that needs fixing
I’m assuming, like many of you, you have the burning question of why is the legislature focusing on 20 dollar beer at a nuggets game? Unfortunately as you will see below, beer or water is really not the objective of this legislation but merely a cover for much broader changes.
At the end of the day people can make choices, you can either buy a beer at the game or not. Furthermore, at the airport you can bring your own lunch or a water bottle to save money. Paying more for a beer at a game or water at the airport is not a problem the legislature needs to be focusing on as insurance prices are skyrocketing, property taxes are through the roof, crime has increased in many cities, businesses are leaving, etc….
What is in the new “captive market” pricing initiative (HB26-1012)
The bill prohibits a person from charging unreasonably excessive prices to a captive consumer and defines “captive consumer” as a consumer who is at a location at which a seller of ancillary goods or services does not have competitors regarding the ancillary goods or services being sold. A person that charges unreasonably excessive prices to a captive consumer engages in an unfair or deceptive trade practice in violation of the “Colorado Consumer Protection Act”.
In essence, in any place where prices could be higher for example an airport, hospital, jail, sporting event, festival, etc… the legislature wants to limit pricing. There are two critical elements of this bill: 1) How is a captive market defined? 2) What is considered an excessive price?
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How is a Captive Market defined?
(a) (I) “CAPTIVE CONSUMER” MEANS A CONSUMER WHO IS AT A
LOCATION IN THE STATE AT WHICH A SELLER OF ANCILLARY GOODS OR
SERVICES DOES NOT HAVE COMPETITORS REGARDING THE ANCILLARY
GOODS OR SERVICES BEING SOLD .
(II) “CAPTIVE CONSUMER” INCLUDES A CONSUMER LOCATED:
(A) A T AN AIRPORT ;
(B) I N A HOSPITAL OR AN EMERGENCY ROOM;
(C) AT AN EVENT VENUE WITH A SEATING OR STANDING CAPACITY
OF TWO THOUSAND OR MORE INDIVIDUALS ;
(D) A T AN ORGANIZED OUTDOOR EVENT , SUCH AS A FAIR OR
FESTIVAL, FOR WHICH MORE THAN TWO THOUSAND ATTENDEES ARE
EXPECTED;
(E) I N A CORRECTIONAL FACILITY.
(b) “CAPTIVE CONSUMER LOCATION” MEANS A LOCATION AT
WHICH CAPTIVE CONSUMERS ARE PRESENT .
The interesting part of this law is that I would disagree with the definition of captive consumer for an airport, or sports venue, etc.. As the consumer always has the choice to A. not attend B. not buy the service which is radically different than a jail or hospital. But under the definition thousands of business would be impacted by the broad definition of “captive consumer”.
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What is considered an excessive price?
THE PRICE OF AN ANCILLARY GOOD OR SERVICE SOLD TO A
CAPTIVE CONSUMER EXCEEDS THE AVERAGE PRICE FOR COMPARABLE
GOODS OR SERVICES SOLD OR OFFERED FOR SALE IN THE SAME COUNTY,
THE SELLER OF THE ANCILLARY GOOD OR SERVICE MAY REBUT THE
PRESUMPTION THAT THE SELLER ENGAGED IN AN UNFAIR OR DECEPTIVE
TRADE PRACTICE BY DEMONSTRATING THAT THE PRICE OF THE ANCILLARY
GOOD OR SERVICE WAS NOT UNREASONABLY EXCESSIVE .
In essence, if you were selling a beer at a nuggets game and a bar in the same county was offering a happy hour special for 2 dollars and your beer was 12 dollars, this would be excessive and prosecuted by the attorney general. Think of the airport, there is also a Costco in Denver that sells water for 50 cents, does that mean water in the airport would now need to be sold for 50 cents. There is not a single business that could survive in places like an airport or other venue as costs are so much higher than at Costco.
Ski resorts a huge target for captive consumer bill
Now that we can understand the definition of a captive consumer, I think it is fair to say that ski resorts would be a huge target. Think of the cost of a meal at the top of Vail. I’m certain it would be more expensive than the 1.99 hot dog special at the Costco located in Edwards which is also located in Eagle County!
Irony is that many governmental agencies could be impacted
Ironically many governments would be impacted by the laws. I would argue that on site parking at the airport is a “captive audience” so how can they legally charge more than if I parked somewhere else in the county? As you can see this will quickly get out of hand as the argument can be made that tons of businesses and governments now fall under the definition of “captive consumer”
Captive Consumer Impact on Colorado real estate
You can take the idea of “captive consumer” a step forward. Would the hotel at the Denver Airport not be subject to the same laws regarding a captive consumer? Under the theory above, the hotel should not be able to charge higher rates than anywhere else in the county due to its location.
This same theory could also apply to ski resorts. Think of basically any ski mountain in Colorado. When someone visits, obviously they are a “captive consumer” the way the law is written. One interpretation of the law would then mean that businesses at the base of the mountain can not charge more than elsewhere in the county. So think of a fleece in a ski shop on the mountain. That fleece is more expensive than in Walmart in the same county. No retail business in a Colorado ski resort could afford to stay open.
Now, another theory could be that lodging prices are higher at the base of a mountain as there are captive consumers for the ski resort. Does this mean that a property owner cannot charge more for a nightly rate than somewhere else in the county?
Slippery slope for Colorado
Long and short, the way the law is currently written, the impacts to businesses, consumers, and governmental agencies throughout the state will be enormous. Costs are radically different based on the location. For example, the burger at the top of Vail has to come to the base area, be loaded on a snow cat, brought up 3 miles, cooked at the top of the mountain where labor costs and everything are considerably higher and yet under the law, they have to justify every single input costs to explain why it costs more than the food court at Costco in the same county.
Real motivation for legislature is to control prices throughout the state
Unfortunately the real motivation for the “captive consumer” law is to allow the legislature to dictate prices throughout the state to provide “fairness”. The irony is that businesses will leave if they are not profitable, which will ultimately lead to fewer choices and higher prices.
Captive consumer law will drive business out of Colorado
Basic economics dictate prices. We have seen throughout history that when the government gets involved in pricing decisions, all prices eventually will increase. Although the legislature is supposedly trying to solve the issue of high beer prices at stadiums and airports, the unintended consequences are huge.
The way the bill is currently written is that thousands of businesses and governmental agencies would be subject to penalties due to unfair pricing. Furthermore, businesses would have to justify through litigation why they are charging more for an item than someone else within the same county. This bill is a recipe for disaster for real estate and various businesses throughout the state.
Colorado, through the captive audience bill, is going down a slippery slope that will ultimately lead to higher prices for all consumers as businesses are forced to leave. The real solution is just the opposite, let consumers pick what they want to pay for. If the beer is too expensive at the nuggets game, then maybe they should get a soda or drink water from the water fountain. I’m a believer that Coloradoan’s can and will make the right choice based on their budgets as they have for hundreds of years.
Additional Reading/Resources:
- https://leg.colorado.gov/bills/HB26-1012
- https://leg.colorado.gov/bill_files/110661/download
- https://www.denverpost.com/2026/01/26/democrats-dynamic-pricing-stadium-concessions-legislature/
- https://coloradohardmoney.com/denver-inventory-surges-and-yet-prices-rise/
- https://coloradohardmoney.com/nightly-rental-taxes-in-colorado-ski-towns/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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