A Colorado tribe has filed a federal lawsuit against the state, claiming Gov. Jared Polis and gaming regulators have infringed on its rights to offer online sports betting.
The Southern Ute Indian Tribe submitted its complaint in the U.S. District Court located in Denver. In the 20-page document, the sovereign nation argues that it has a gaming compact in effect with the state that allows it to offer the same types of Class III games that licensed commercial operators, such as Colorado sportsbooks, can offer.
Tribe Sought Sports Betting From The Start
Colorado voters passed Proposition DD in November 2019 to allow both online and retail sports betting across the state. However, the Southern Ute allege state officials failed to meet with tribal leaders to discuss sports betting until shortly before the statewide launch in May 2020.
Tribal leaders chose to move forward and rolled out the Sky Ute Sportsbook, an online app available to Colorado sports bettors, a month after the official launch. Shortly thereafter, the tribe claims the Colorado Division of Gaming, at the behest of Polis, “pressured” its sports betting vendor by threatening to pull its commercial license if Sky Ute took sports bets off tribal land.
The state’s actions violate the Indian Gaming Regulatory Act, the 1988 law passed by Congress allowing tribes to offer federally regulated gambling, provided they have an approved compact in place with a state.
“Since IGRA’s enactment in 1988, every Colorado governor prior to Governor Polis was respectful of the Tribe’s sovereignty and never sought to intrude on the Tribe’s gaming activities or revenues in any way,” the lawsuit states.
Despite the threats from the state, Sky Ute remained in operation until a year ago. Tribal leaders say in the complaint that they were forced shut it down as the app faced an “over-saturated” sports betting market in the state.
In addition, the state’s position to not recognize the tribe’s rights made operating a sportsbook a more daunting and expensive task. Tribal leaders argue the state’s demand the Southern Ute pay the 10% tax as commercial sports betting operators is also illegal. The tribe’s current compact with Colorado does not require it to share any gaming revenues with the state.
Florida Sports Betting Case Cited
Among the cases the Southern Ute bring up in its lawsuit is the Florida sports betting case recently decided by the U.S. Supreme Court. Last month, the justices declined to hear the appeal of commercial gaming operators objecting Florida’s compact with the Seminole Tribe, which gave the tribe statewide sports betting rights.
The Seminole Tribe and Florida officials contend that statewide online sports betting takes place on tribal lands because that’s where the servers processing the wagers are located. The U.S. Department of Interior, which oversees tribal gaming, recently amended its gaming rules to allow nations involved in gaming to offer statewide online gaming provided they have compacts in place with states.
Besides seeking the reinstatement of Sky Ute to take wagers statewide, the tribe also wants the court to prohibit Polis from “continuing bad faith negotiations.”
Colorado officials have until July 30 to respond to the Southern Ute’s claims. A spokesperson for the Polis Administration told BetColorado.com it did not have any comment on the pending case.
Also of interest: Betway To Leave U.S., Follow Tipico In Exiting Colorado Sports Betting Market.
USA Today photo by Vincent Carchietta.
