Another federally recognized tribe is joining a lawsuit in Colorado over sports betting.
The Ute Mountain Ute Tribe has joined a lawsuit in the U.S. District Court for the District of Colorado against Gov. Jared Polis and state Division of Gaming Director Chris Schroder. Last week, the Ute Mountain Ute Tribe joined the Southern Ute Indian Tribe in an amended complaint that argues against efforts by the state government and its gaming officials to bring online sports betting offered by tribes under state regulation.
Over two decades ago, the two tribes entered into gaming compacts in Colorado under the Indian Regulatory Act. The gaming compacts provide the two tribes with exclusive rights to “regulate and manage” their own gaming as long as the offerings are authorized.
“This attempt to bring tribal gaming under state regulation is illegal, offensive to tribal sovereignty, and pointless,” reads the amended complaint. “The tribes are sovereign Indian nations that have occupied their homelands since time immemorial and, as such, enjoy a sovereign right to regulate their own commercial activities as they see fit, consistent with their binding gaming compacts with Colorado.”
In the complaint, the tribes allege that the state failed to collaborate with them before the authorization of online sports wagering in 2020. The tribes also argue the Colorado Commission of Indian Affairs failed to prepare them for the arrival of wagering.
Since 1976, the commission has served as the liaison between the government and tribes.
Colorado’s tax requirement
In the complaint, the Southern Ute Indian Tribe and Ute Mountain Ute Tribe allege the state wants to place tribal gaming under regulation for greed as tribal gaming isn’t subject to Colorado’s 10% tax on sports betting that online operators across the state pay.
According to data provided by the Colorado Division of Gaming, operators in the state closed July 2024 with a $320.3 million handle, a 14% uptick year-over-year. Total taxes for operators during the month reached $2.3 million, up 33.2% compared to July 2023.
The state’s effort to regulate tribal gaming has also hindered potential revenue streams.
“The Ute Mountain Ute Tribe explored launching its own online sportsbook, as authorized under tribal law, but was unable to do so,” continues the complaint. “One of the primary reasons why it was unable to proceed was that its potential vendors declined to do business with it after receiving communication from (Colorado Division of Gaming) suggesting that participation could result in an enforcement action by the state.”
The Southern Ute Indian Tribe also faced the same issue launching its own online app.
The two tribes are asking the District Court to allow them to offer wagering under existing law preventing interference from the government and for legal fees associated with the suit. The state has yet to respond to the suit and has requested an extension to reply.
