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The Southern Ute Indian Tribe of Colorado is locked in a legal battle with the state government over online sports betting rights. The tribe claims Governor Jared Polis and the Colorado Division of Gaming are unfairly preventing them from operating an online sportsbook.
Broken Promises and Tax Disputes
The tribe alleges that Governor Polis is reneging on a 1995 agreement that allows them to conduct gaming operations within the state. This agreement stipulated that tribal gaming would be similar to other legal gaming options in Colorado.
However, the lawsuit argues that the state is motivated by tax revenue. Since tribal land isn’t subject to state taxes, Governor Polis is accused of attempting to exclude the Southern Ute Tribe from the online sports betting market to maximize tax collection.
1995 Compact Ignored, Tribe Claims
The Southern Ute Tribe operates the Sky Ute Casino Resort under the 1995 agreement. This agreement allows them self-regulation, independent of the state. However, the tribe contends they were not consulted when Colorado voters legalized online sports betting in 2019 (Proposition DD).
Following Proposition DD, the Southern Ute Tribe launched their own online sportsbook, Sky Ute Sports. However, the state insisted this operation needed a state license, subjecting it to a 10% tax and potentially violating federal law regarding tribal gaming.
The tribe claims the state deliberately delayed processing their application until competitors saturated the market, effectively shutting them out. Sky Ute Sports ultimately closed its doors in 2023.
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A Familiar Dispute
This isn’t the first time a legal battle has erupted over online sports betting and tribal land. The Southern Ute Tribe’s situation resembles a recent dispute involving the Seminole Tribe in Florida, who hold exclusive rights to online sports betting within their state.
Seeking Legal Resolution
The Southern Ute Tribe’s lawsuit asks the court to determine if the governor and the Colorado Division of Gaming have violated the Indian Gaming Regulatory Act. They also seek an injunction to prevent further interference with their tribal gaming rights.
“We prefer resolving issues amicably,” stated Southern Ute Tribal Chairman Melvin J. Baker. “Unfortunately, after years of trying, we’re left with no other choice.”
The outcome of this lawsuit will be closely watched by other tribes facing similar challenges in the expanding online sports betting market.
