Ute Mountain Ute Tribe Joins Online Sports Betting Lawsuit Against Colorado

The Ute Mountain Ute Tribe is joining an existing 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.

Ute Mountain Ute Tribe wanted its own online sportsbook in Colorado before joining the online sports betting lawsuit

An amended complaint filed with the U.S. District Court for the District of Colorado added the Tribe to the complaint. It also outlines a similar list of claims made by the Southern Ute Tribe, according to CPR News’ Tom Hesse.

“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 echoes a claim made in the Southern Ute Tribe’s initial filing. Additionally, the Tribe had contacted vendors to provide online sports betting, but those vendors were warned by the state. The operators were told they could not operate online betting with the Tribe that went beyond reservation boundaries.

Furthermore, online sports betting in Colorado was approved by voters in 2019, allowing residents to place wagers within the state. The Tribe claims the state is misinterpreting the 1995 agreement. The State argues that the Tribes can only handle wagers on reservation lands.

Tribes’ complaint cited the federal court decisions in Florida

An email from the state to the Ute Mountain Ute Tribe and a Nevada-based operator was sent out in 2020. Those messages in the court filings highlight 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.

The Tribes’ complaint argues that’s incorrect, citing the federal court decisions in Florida. Of course, those rulings sided with the Seminole Tribe’s “hub-and-spoke” argument. According to the rulings, wagers placed within the state but processed on Tribal lands are still counted as bets on Tribal land.

Sports wagers in Colorado are subject to a 10% tax, while Tribal gambling is not. Tax revenue is allocated to fund state water projects. Per multiple emails from the lawsuit, the State suggested a compromise agreement whereby wagers placed by gamblers on Tribal land would remain untaxed.

Nonetheless, wagers placed via Tribal sportsbooks in Colorado would be subject to a fee.