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The Southern Ute Indian Tribe has taken legal action against Governor Jared Polis and Colorado’s gaming authorities, accusing them of violating state and federal laws in their handling of online sports betting.
In a recent statement to the American Indian Affairs Interim Study Committee, Southern Ute Tribal Chairman Melvin J. Baker announced the tribe’s decision to file a federal lawsuit against the state of Colorado. The lawsuit challenges the state’s failure to honor commitments made to the tribe regarding its rights under gaming compacts.
“This is the first time in decades that the Southern Ute Indian Tribe has had to resort to legal action against the state of Colorado due to their refusal to uphold the commitments made to us,” Baker emphasized.
The Tribe argues that Colorado’s current regulatory framework allows them to offer sports betting activities equivalent to those permitted elsewhere in the state, under the provisions of Proposition DD passed in 2019. However, when the Southern Ute Tribe attempted to launch its own online sportsbook, it encountered resistance from state officials.
According to the complaint, this resistance stemmed from the state’s imposition of a 10% tax on sports betting revenues, from which tribal gaming operations are exempt under federal law. The Tribe contends that Colorado’s actions were financially motivated and aimed at excluding tribal enterprises from the online sports betting market.
The legal dispute seeks judicial review of the closure of the Sky Ute SportsBook in July 2023, along with injunctions against the state’s actions and reimbursement for the tribe’s legal expenses. Outside the courtroom, the Southern Ute Tribe is urging the Colorado Legislature to resolve the issue through statutory measures that ensure fairness in sports betting regulations.
David Smith, legal services director for the Southern Ute Indian Tribe, underscored the importance of governmental sovereignty and fair treatment for tribes in gaming matters. He noted, “Under federal law, tribes have limited taxing authority, and Congress established exemptions to support tribal operations.”
The Southern Ute Tribe and the state of Colorado have ceased to have cooperative ties, as stated in the tribe’s legal petition and public remarks. They draw attention to the necessity of fairness in treatment and communication in order to address the regulatory issues related to sports betting.