Tribes and Colorado Clash Over Sports Betting After Court Ruling

Colorado’s ongoing fight about tribal access to online sports betting has gotten worse after a federal judge dismissed a lawsuit filed by the Southern Ute and Ute Mountain Ute Tribes. This led to harsh criticism from tribal leaders and new claims that the state has ignored its duties.

Federal Ruling Blocks Tribal Challenge, Affirms Colorado Control of Off-Reservation Wagers

The ruling, handed down in October by a US District Court judge, decided that Colorado could not be sued over its online betting system because of state sovereign immunity. The decision also backed up the state’s long-held view that where the bettor is located, not where tribal servers are placed, determines if federal Indian gaming law applies. In real terms, this means bets made from anywhere outside reservation borders are under state control, even if they are processed through tribal technology.

Native American tribes argued that this view weakened their rights under federal law and shut them out of a market that Colorado voters okayed in 2019. They said they should have been able to start their own online sportsbook without paying the state’s 10% betting tax, which helps fund water-related projects across Colorado, as reported by KSUT Public Radio. Tribal leaders have always said these taxes do not apply to them and that Colorado’s push to impose them stepped on their independence.

Gas Spill Fallout and Gambling Rift Fuel Tribal Frustration with Colorado Officials

The Southern Ute government responded to the lawsuit’s dismissal. They said the state’s actions had damaged trust and interfered with what should have been respectful talks between governments. At a 2024 tribal council meeting, Chairman Melvin Baker recalled that state officials did not work with the tribe while they were making sports-betting laws. Baker said the administration waited until the last stages of the lawmaking process to question tribal involvement. He called this a sign of bad communication and unfairness.

A separate environmental issue has increased tensions. Tribal chiefs highlighted that while sports betting money helps fund statewide water projects, the state gave little aid after a huge gas leak was found on Southern Ute territory last year. The spill, thought to be almost 97,000 gallons, contaminated groundwater and put the Animas River at risk, forcing the tribe to handle the cleanup by itself.

At the same time, online sports betting keeps bringing in big money for Colorado. State figures show that over $6 billion in bets were made in the last fiscal year, generating about $37 million to protect and supply water.Tribal governments are still weighing their options, but they have made it clear they see the ruling as a setback that goes beyond just gambling. In their eyes, it shows an ongoing battle to get fair treatment in Colorado’s fast-growing betting scene.