Ute Mountain Ute Tribe joins lawsuit over Colorado’s online sports betting access

The Ute Mountain Ute Tribe has joined a lawsuit against the state of Colorado, challenging restrictions that have prevented them from engaging in online sports betting. The tribe was added to an amended complaint filed with the U.S. District Court for the District of Colorado on Thursday. The lawsuit was originally filed in July by the Southern Ute Tribe.

The legal dispute stems from the state's implementation of Proposition DD, which legalized sports betting in 2019. Both tribes argue that they have been unfairly excluded from offering online sports betting due to concerns raised by the Colorado Department of Revenue that bets placed through their platforms might occur outside tribal lands.

The lawsuit names Colorado Governor Jared Polis and Colorado Division of Gaming (DOG) Director Christopher Schroder as defendants.

In a statement, Ute Mountain Ute Tribe Chairman Manuel Heart said: “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.”

The tribes claim that longstanding state-tribal compacts, which have allowed them to operate casinos and sportsbooks, are being violated by the state's refusal to allow them to run online sportsbooks. They also allege that the state failed to involve the Colorado Commission of Indian Affairs (CCIA) in discussions about the implementation of Proposition DD and has delayed meetings to resolve the issue.

The Southern Ute Tribe first raised these concerns in 2021, when the DOG proposed an agreement imposing a 10% fee on bets placed by individuals outside tribal land. The tribe rejected the proposal, arguing it violated their compact and came too late, as the online sports betting market had already grown significantly.

Colorado’s online sports betting market generated over $32.5 million in revenue in August 2024 alone. Both tribes are now seeking recognition from the court that their online sportsbooks comply with state laws and are asking that the state cease its interference with their operations. They also demand that the state honor its obligations under the existing compacts. 

Southern Ute Indian Tribe Chairman Melvin J. Baker stated: "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."