Colorado Tribes Shut Down Sports Betting, Sue State Over Sovereignty Rights
The Southern Ute and Ute Mountain Ute Indian Tribes have shut down their sports betting operations and filed a lawsuit against the state of Colorado. This move comes after a federal court ruling and a contentious petroleum spill, reopening old wounds between the Tribes and the state. The Tribes began offering online sports betting six months after Colorado voters approved it in 2019. However, they recently faced a setback when Judge Gordon Gallagher dismissed their case, stating that any bets placed off-reservation fall under state regulation. This ruling has led the Tribes to shut down their sports books and sue the state. The Tribes generate significant revenue from gaming operations, with national figures reaching about $42 billion in 2023. Despite this, they argue that Colorado's ban on their online sports betting is an extension of the 'troubling legacy' of broken agreements between governments and the Tribes. They also expressed disappointment with Colorado Gov. Jared Polis's handling of a gasoline spill on their land. Colorado has seen substantial growth in betting and tax revenue since legalizing sports gambling in 2019. The state advised the Tribes to apply for the state betting license, promising to share 10% of net sports betting revenue. However, the Tribes declined this offer and chose to sue instead. The Tribes' lawsuit challenges Colorado's regulation of online sports betting on their reservations. The outcome of this legal battle could have significant implications for the relationship between the state and the Tribes, as well as for the future of online gambling in Colorado.
