Another Colorado tribe has joined a lawsuit against the state over access to online sports gambling.
An amended complaint filed Thursday with the U.S. District Court for the District of Colorado added the Ute Mountain Ute Tribe to a lawsuit filed earlier this year against the state by the Southern Ute Tribe.
The complaint alleges that both tribes have been “unfairly” denied by the Colorado Department of Revenue from engaging in online sports betting after the passage of Proposition DD in 2019, which legalized it in the state.
Gov. Jared Polis and Colorado Division of Gaming Director Christopher Schroder are named as the defendants in the lawsuit.
Both tribes refer to longstanding state-tribal compacts that have allowed them to establish and operate their respective casinos and sports books. They add that they have been unable to establish online sports books over concerns by the state that bets would take place beyond tribal boundaries.
“The State must live up to its obligations to our Tribes as outlined in agreements and federal law. Because of this ongoing injustice, we are also now taking the unfortunate but necessary step of legal action to correct this,” said Ute Mountain Ute Tribe Chairman Manuel Heart in a news release.
The Ute Mountain Ute Tribe states that it was unable to establish its own online sportsbook because potential vendors were told by the Division of Gaming that it would result in repercussions by the state.
Prop DD levied a 10% tax on sports betting proceeds, paid for by casinos, online sportsbooks and bettors. Since federally recognized tribes aren’t taxable entities, tribal gaming proceeds are exempt from these taxes.
Both tribes are alleging that the state DOG has violated the original compacts by excluding the Colorado Commission of Indian Affairs (CCIA) from discussions ahead of Prop DD becoming law, delaying subsequent meetings to reach an agreement.
Former DOG Director Dan Hartman proposed an agreement to the Southern Ute Tribe on May 17, 2021, that would impose a 10% fee “for bets placed with the Tribe’s operation by bettors located off Tribal land” and be subject to state regulations.
The tribe argued this would violate the compact and that the offer came well-after the sports betting market had become “over-saturated.” In August 2024, Colorado reported online sports betting generating over $32.5 million in revenue.
“The State is wrong to lock our Tribes out of these economic opportunities, and they must be held accountable for their actions to hold back our Tribes,” Heart said.
Both tribes are asking that the court recognize their respective sportsbooks as compliant with all state legal requirements as online gambling entities. Also, the tribes are asking that the state no longer interferes with their operations and adheres to the compacts going forward.
“Enough is enough. This unfair treatment must end now. Our Tribes are demanding immediate action to rectify this injustice and ensure the State fulfills its obligations,” said Southern Ute Indian Tribe Chairman Melvin J. Baker.