Southern Ute Indian Tribe Sues Colorado Officials Over Sports Betting Exclusion
The Southern Ute Indian Tribe has filed a federal lawsuit in Colorado’s U.S. District Court, accusing Governor Polis and the Colorado Division of Gaming (CODOG) of failing to negotiate in good faith as required by the Indian Gaming Regulatory Act (IGRA).
Development of Sports Betting Strategy
Following the narrow approval of a sports betting referendum by Colorado voters in November 2019, the Southern Ute Indian Tribe began to formulate its sports betting strategy.
The tribe moved to collaborate with state officials and the gaming regulatory agency to prepare for both retail and online sportsbook operations.
Despite initial progress, the situation soured when CODOG issued a letter on June 16, 2020, to US Bookmaking— the tribe’s sportsbook partner—declaring the operation of online bets on the tribe’s behalf as illegal, leading to the suspension of the online Sky Ute Sportsbook and eventual closure of their retail sportsbook at the Sky Ute Casino Resort in July 2023 due to insufficient profitability.
Allegations Against State Officials
The tribe contends that Governor Polis and CODOG acted out of financial interest to preserve tax revenue from non-tribal gaming entities, which agree to pay 10% of their gross sportsbook revenue to the state. In contrast, the Southern Utes assert they are entitled to retain 100% of their online sportsbook income under their compact which, unlike most other states, does not include revenue-sharing provisions with the tribes.
The lawsuit argues that by the time Colorado officials agreed to formal consultations with the Southern Ute and Ute Mountain Ute tribes in October 2021, the online sports betting market was already dominated by non-tribal platforms. The tribe accuses the Polis administration of securing a monopoly for these non-tribal enterprises, thereby freezing out the tribes after the market had been established.
The Southern Ute Tribe criticizes the state’s requirement for tribal online sportsbooks to submit to CODOG’s regulatory oversight and to relinquish 10% of their online sportsbook revenue if operating beyond sovereign lands. The tribe emphasizes its proven track record of successfully regulating its gaming operations for 30 years without incident, underscoring their capability to manage their enterprises independently in compliance with Tribal and federal laws.
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