The ruling by the 10th U.S. Circuit Court of Appeals was issued Friday in a case involving Washington state resident Gray Peterson.
A federal judge in 2011 tossed out Peterson's lawsuit filed against Denver and the state of Colorado's Department of Public Safety. Peterson claims that being denied a concealed weapons permit because he was not a Colorado resident violated his Second Amendment rights to bear firearms.
According to gun rights groups, Colorado is one of about two dozen states that do not honor concealed weapons permits from Washington state.
Colorado recognizes weapons permits issued by other states, but only for states that recognize Colorado permits. Washington state does not recognize Colorado permits.
The Colorado attorney general's office was "gratified that the 10th Circuit Court has upheld Colorado state law," spokeswoman Carolyn Tyler said.
The National Rifle Association did not return a phone call seeking comment and Peterson could not be located for comment.
In its ruling, the three-judge panel cited a U.S. Supreme Court ruling that "the right of the people to keep and bear arms is not infringed by laws prohibiting the carrying of concealed weapons."
"In light of our nation's extensive practice of restricting citizen's freedom to carry firearms in a concealed manner, we hold that this activity does not fall within the scope of the Second Amendment's protections," the judges ruled.
According to court records, Peterson had permits from Florida and Washington. Peterson said he was a frequent visitor to Denver and needed to carry a firearm during his visits.