The Southern Ute and Ute Mountain Ute Indian Tribes Colorado have renewed their calls for participation in Colorado online sports betting.
Two tribes in southern Colorado have renewed their calls for equal participation in the state’s online sports betting industry, arguing that the state’s restrictions perpetuate a long history of inequitable treatment.
The latest appeal from the Southern Ute and Ute Mountain Ute Indian Tribes follows both a federal court setback and a worsening environmental crisis involving a major petroleum spill on tribal land, according to an ongoing report series by CBS News.
The dispute dates back to 2019, when Colorado voters approved the legalisation of online sports betting.
Six months later, both tribes launched online sportsbooks – Sky Ute SportsBook in Ignacio and Ute Mountain Casino’s platform in Towaoc – through their respective casinos.
Shortly after launch, the Colorado Division of Gaming (CODOG) issued cease-and-desist letters to the vendors operating each platform. The letters alleged that the vendors were offering sports wagering without complying with state licensing requirements.
CODOG advised the tribes to apply for state-issued sports betting licenses, which would include a 10% tax on net revenues. The tribes declined, asserting that such requirements undermined their sovereignty, and instead filed a lawsuit.
They argued that Colorado’s actions imposed barriers that effectively excluded them from the sports betting market.
In October, US District Judge Gordon Gallagher dismissed the case. He noted the legal ambiguity created by modern mobile gambling, observing that players can place bets from anywhere while servers may be located on tribal lands.
Ultimately, he ruled that wagers placed off-reservation are subject to state regulation and taxation. His decision aligned with the state’s position that all mobile betting conducted outside tribal boundaries falls under Colorado’s jurisdiction.
A major setback
The ruling was a blow to the tribes, who contend that revenue from gaming could help address local environmental and economic challenges.
The setback comes as the Southern Ute Tribe grapples with a gasoline spill near the Animas River, where groundwater contamination has displaced several residents.
Enterprise Products, the company responsible, revised its estimate of the spill in May from 23,000 gallons to nearly 97,000 – the largest of its kind in Colorado since 2016.
Tribal leaders issued a joint statement suggesting that the state’s muted response reflects a broader disparity.
They argued that if the incident had occurred in Denver rather than a rural reservation area, remediation efforts would have been far more robust.
The tribes said they have used their own funds to safeguard local waterways without any financial support from the state’s sports betting revenues, which are earmarked largely for water resource protection.
The situation highlights a growing dichotomy between tribal and state gaming frameworks across the US. A comparable dispute in Florida was resolved in favour of the Seminole Tribe, whose hub-and-spoke betting model was upheld by federal courts.
That precedent may provide the impetus for Colorado’s tribes to revisit their compact negotiations, seeking a path that vindicates their sovereignty and secures equitable participation in the online betting market.