Colorado Tribes Renew Fight for Sports Betting Rights

Renewed Conflict Between Colorado and Tribes Over Sports Betting

Relations between Colorado and its two federally recognized tribes, the Southern Ute Indian Tribe and the Ute Mountain Ute Tribe, have become strained once again. Disagreements over online sports betting rights and environmental concerns have heightened tensions. Tribal leaders express frustration, stating the state’s denial to permit online sports wagering by the tribes continues a pattern of broken promises and deteriorated relations.

Tribes Face Exclusion from Online Sports Betting

The central issue stems from a recent federal court decision which dismissed the tribes’ lawsuit challenging restrictions on tribal-operated online sports betting. Both tribes assert that their gaming compacts authorize them to offer Class III gaming, including sports betting, on par with other licensed entities within the state.

However, Judge Gordon Gallagher ruled in favor of Colorado regulators, determining that any bets placed outside of tribal lands fall under state control, regardless of whether they use tribal servers. This verdict effectively blocks the tribes from launching online sports betting ventures without holding a commercial license.

Since Colorado voters legalized sports betting in 2019, the industry has grown rapidly, with nearly $100 million wagered in September alone. Despite this growth, tribal casinos have remained largely excluded. Both tribes briefly operated casinos in 2021 before regulatory intervention led to the shutdown of their platforms, fueling ongoing legal disputes.

Additional Disputes Exacerbate Tensions

In response to the court ruling, the tribes released a joint statement accusing the state government of infringing on their sovereign rights and favoring out-of-state gaming interests. Compounding these tensions is an environmental crisis impacting Southern Ute lands: a substantial gasoline spill near the Animas River has forced several evacuations.

The tribe alleges that they have had to manage cleanup efforts with minimal assistance from both the state and the responsible company. A cancelled conference call between Governor Jared Polis and Southern Ute Chairman Melvin J. Baker further strained relations, with tribal leaders accusing the state of neglecting critical issues and showing disregard.

Governor Polis’s office responded cautiously, expressing respect for tribal sovereignty and affirming a commitment to collaborative efforts on gaming and environmental matters. Despite setbacks, the tribes remain determined to secure their place in Colorado’s expanding sports betting market, especially as new challenges like prediction markets emerge to complicate their efforts.