by 
The Curious Bag
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<h4 class="dechead">On One Hand: There is a Risk of Carbon Monoxide Poisoning
Vent-free gas fireplaces lack chimneys or flues to direct their combustion products outside, which means they vent them into the room instead. The primary combustion products are harmless carbon dioxide and water vapor; however, carbon monoxide (CO), which is toxic, may also be produced. CO poisoning can cause flu-like symptoms, confusion, chest pain and death.
On the Other: Modern Fireplaces Are Quite Safe
Since 1980, all vent-free fireplaces have included an Oxygen Depletion Sensor (ODS), which automatically shuts off the unit if it detects low levels of ambient oxygen. As the building industry points out, vent-free systems have an outstanding safety record, especially when professionally installed and properly serviced. Most governments agree, so they're legal in 49 states.
Bottom Line
Any recent vent-free gas fireplace that has been professionally installed and maintained, has an ODS, is kept away from combustible materials and is used in a room with good circulation can be considered safe. Pre-1980 models should be avoided.
Source:
Home Energy: Regulating Ventless Heaters
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