Colorado Tribes Sue State over Sports Betting Regulations
Colorado is one of the 38 states where sports betting is both legal and active, with millions of bettors enjoying access to both in-person and online wagering.
Colorado sign. Two Colorado tribes sue state over right to offer sports betting.
LISTEN TO THIS ARTICLE:Since its 2020 launch, the sports betting market in the state has thrived; however, two Native American tribes have been unable to launch their betting services as the Colorado Division of Gaming continues to block their attempts.
Native American Tribes File Lawsuit Against Colorado
Due to the restrictions, the Southern Ute Indian Tribe has filed a lawsuit, naming Colorado’s governor, Jared Polis, and state gaming officials as defendants. Furthermore, a recent CPR report claimed that another tribe, the Ute Mountain Ute Tribe, has joined the lawsuit.
Both tribes are challenging the state’s interpretation of a 1995 agreement between the tribes and Colorado. According to the tribes, the agreement should allow them to accept sports bets from across the state, provided the servers facilitating these bets are located on tribal lands. In contrast, the state maintains that the tribes can only accept wagers from individuals physically on tribal territory.
The Southern Ute and Ute Mountain Ute tribes are seeking a federal court ruling to affirm their interpretation of the agreement. If successful, it would permit the tribes to operate sports betting across Colorado while barring the state’s Division of Gaming from further interference.
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Similar Legal Precedent in Florida
The tribes are drawing parallels between their lawsuit and a similar legal battle in Florida. There, the Seminole Tribe and the state of Florida had an agreement that allowed the tribe to offer exclusive online sports betting throughout the state. Critics of the deal claimed it violated the Indian Gaming Regulatory Act (IGRA), leading to years of legal disputes.
However, this summer, the U.S. Supreme Court declined to hear an appeal, effectively upholding the legality of the Seminole Tribe’s gaming compact under IGRA. The Colorado tribes argue that their situation is similar, suggesting that they should also be allowed to offer sports betting statewide based on their existing agreement with Colorado.
The Colorado tribes’ legal challenge is in its early stages and is yet to gain significant momentum; however, the experience in Florida suggests it could take years to fully resolve.
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