Colorado Tribes Renew Fight for Sports Betting Rights

Tensions have once again erupted between the state of Colorado and its two federally recognized tribes, the Southern Ute Indian Tribe and the Ute Mountain Ute Tribe. Frictions over sports betting rights and environmental disputes are becoming more pronounced. Tribal leaders say the state’s refusal to allow them to offer online sports wagering represents yet another broken promise in a long history of strained relations.

Tribes Remain Largely Sidelined

The conflict centers on a recent federal court ruling that dismissed the tribes’ lawsuit against the restrictions on tribal-run online sports betting. The two tribes also argue that existing gaming compacts allow them to offer Class III gaming, including sports wagering, just as any other licensed operator in the state.

Despite the tribes’ claims, Judge Gordon Gallagher sided with Colorado regulators. He concluded that any bets placed outside tribal lands fall under state jurisdiction, even if they are processed on tribal servers. This ruling effectively shuts down any attempts to establish tribal sports wagering operations without a commercial license.

We believe a different result is mandated by federal law and will be evaluating how to move forward in the coming weeks.

Southern Ute Indian Tribe statement

Colorado voters approved legalized sports betting in 2019, and the industry has since grown significantly, with patrons wagering almost $100 million in September alone. However, the state’s tribal casinos have been sidelined. Both tribes briefly operated tribal casinos in 2021 before regulators cracked down on their platforms, causing the ongoing legal friction.

Other Incidents Caused Further Contention

Following the court’s ruling, the tribes issued a joint statement accusing the current administration of undermining sovereign rights and prioritizing out-of-state gaming interests. An environmental crisis in Southern Ute land threatens to further inflame tensions as a massive gasoline spill near the Animas River resulted in the evacuation of several households.

The tribe alleges that its government has been forced to handle cleanup efforts without significant support from either the state or the company responsible for the spill. A cancelled conference call between Governor Jared Polis and Southern Ute Chairman Melvin J. Baker caused further controversy. Tribes claim that the state is ignoring pressing issues, treating them with alarming disregard.

Governor Polis’s office responded to these claims with a measured statement emphasizing “deep respect” for tribal sovereignty and a commitment to “ongoing collaboration” on gaming and environmental issues. Meanwhile, the tribes remain determined to regain the right to participate in Colorado’s booming sports betting market, especially as other emerging challenges, such as prediction markets, threaten to undermine their efforts.