A Native American tribe in Colorado, the Southern Ute Indian Tribe, is taking legal action against Governor Jared Polis and Colorado Gaming Division Director Christopher Schroder regarding the launch of sports betting in the state. The tribe holds a Class III gaming compact with the state and claims that the governor and regulatory agency did not negotiate in good faith as required by the Indian Gaming Regulatory Act (IGRA).
After Colorado voters approved a sports betting referendum in November 2019, the tribe began developing its sports betting strategy. The Southern Utes sought to work with the governor and gaming regulatory agency in preparation for launching their retail and online sportsbook. However, just weeks after online sports gambling began in May 2020, the Colorado Division of Gaming sent a letter to the tribe’s sportsbook partner, US Bookmaking, stating that their online betting operations were illegal.
The tribe was forced to suspend its online sportsbook, Sky Ute Sportsbook, and later closed its retail sportsbook due to financial reasons. The lawsuit filed by the Southern Ute Indian Tribe alleges that Governor Polis was motivated by tax revenue to exclude the tribe from the online sports betting market.
Unlike other states with revenue-sharing provisions in their gaming compacts, Colorado does not include such provisions. The tribe argues that they are entitled to retain 100% of their online sportsbook income. The lawsuit also mentions a consultation between the tribes and the governor in 2021, but by then, the market was already saturated with other online sports betting platforms.
The lawsuit references a recent U.S. Supreme Court ruling regarding the Seminole Tribe’s online sports betting rights in Florida. The court upheld the tribe’s exclusive rights to online sports betting, citing that the bets were not in violation of IGRA. The Southern Ute’s complaint cites this ruling in support of their case.
The tribe is seeking a declaration from the federal district court that their online sportsbook is lawful, a directive for the state to stop violating their Gaming Compact, and financial damages. The outcome of this legal battle could have significant implications for tribal gaming rights and online sports betting in Colorado.
