Colorado Public Radio originally published this story on Sept. 27, 2024.
The Ute Mountain Ute Tribe has signed on to a lawsuit filed earlier this year alleging the state of Colorado is blocking the ability of Tribes to engage in online sports betting, a violation of the terms that govern Tribal gaming in the state.
An amended complaint filed with the U.S. District Court for the District of Colorado adds the Ute Mountain Tribe to the complaint and outlines a similar list of claims made by the Southern Ute Tribe.
“The Ute Mountain Ute Tribe explored launching its own online sportsbook, as authorized under Tribal law, but was unable to do so,” the new complaint reads. “One of the primary reasons why it was unable to proceed was that its potential vendors declined to do business with it after receiving communication from (Colorado Division of Gaming) suggesting that participation could result in an enforcement action by the State.”
That mirrors a claim made in the Southern Ute Tribe’s initial filing that the Tribe had contacted vendors to provide online sports betting, but those vendors were warned by the state that they could not operate online betting with the Tribe that went beyond reservation boundaries.
Online sports betting was narrowly approved by voters in 2019, paving the way for residents to wager on games via the Internet. At the heart of the dispute between the Tribes and the state is how a 1995 agreement related to gaming is interpreted in the era of being able to place wagers anywhere in the state. The Tribe claims the state is improperly interpreting the agreement when they say that the Tribes can only handle wagers on reservation lands.
A 2020 email from the state to the Ute Mountain Ute Tribe and a Nevada-based vendor that was included in the court filings highlights the state’s concerns.
“The Division recognizes the Tribe’s freedom to govern Tribal sports betting on Tribal lands. However, the Division considers such gaming occurring off Tribal lands but within the state of Colorado, and the facilitation of such gaming, to be illegal,” wrote Dan Hartman, then-director of the Colorado Division of Gaming. Christopher Schroder, who is named in the lawsuit, is the current director of the division.
The Tribes’ complaint says that’s not the case, pointing to federal court decisions in Florida that sided with the Seminole Tribe’s “hub-and-spoke” argument that wagers placed within the state, but processed on Tribal lands, constituted a bet on Tribal land.
Vanessa Racehorse, an associate professor of law at the University of Colorado law school, told CPR news in August the claims made by the Southern Ute seemed in line with existing law.
“The tribes made some pretty clear cut and compelling arguments that are really just rooted in the plain text of the Indian Gaming Regulatory Act, as well as the plain language within their compact. So it seemed very straightforward at this point. I'm very curious as to what the state's reply will look like and what they'll cite,” Racehorse said.
Sports wagers in Colorado are subject to a 10 percent tax, while Tribal gambling is not. Money from that tax is intended to fund state water projects. In July this year, sportsbooks operating in Colorado took in more than $320 million in wagers.
Emails included in the Tribe’s lawsuit show the State suggested a compromise agreement whereby wagers placed by people on Tribal land would remain untaxed, while wagers placed through Tribal sportsbooks but elsewhere in Colorado would be subject to some form of fee.
