Colorado’s two federally regulated tribes aren’t giving up their fight for what they believe is their right to operate sports betting sites on tribal land. The tribes have filed an appeal in the United States Court of Appeals for the 10th Circuit after their original lawsuit against the state of Colorado was dismissed last month.
Lawyers for the tribes argue that the Indian Gaming Regulatory Act (IGRA) gives them the right to operate gambling on tribal land. They believe that refusal to allow this violates the gaming compact the state government signed with the tribes.
State officials counter that to operate a sports betting facility in Colorado, the tribes must pay the same 10% of all revenue earned, as all other sportsbook operators in the state do.
Six months after the state of Colorado approved legal and regulated retail and online sports betting in 2020, both the Southern Ute and Ute Mountain Ute Indian Tribes launched sports betting platforms through their tribal casinos.
Colorado tribes were ordered to shut down their sportsbooks
The Southern Ute Tribe operated the Sky Ute SportsBook through its Sky Ute Casino in Ignacio, Colorado. The Ute Mountain Ute Tribe launched a separate platform at its Ute Mountain Casino in Towaoc, Colorado.
However, within weeks of opening, both sportsbooks received a letter from the Colorado Division of Gaming (CODOG).
"[W]e believe that your company is participating in sports betting in Colorado on behalf of the Southern Ute Indian Tribe without complying with Colorado gaming law," the letter read.
Tribal leaders countered by shutting down their sportsbooks and then filing suit against the Colorado government in federal court. However, Judge Gordon Gallagher
dismissed the case.
"Colorado explicitly authorized sports betting, a Class III game, throughout the state," read a joint press release from the tribes following the judge's decision. "But the State immediately stymied the ability of the Tribes to engage in that activity despite clear authorization under the Gaming Compacts.”
This argument is forming the basis for the appeal filed by the two tribes.
A favorable ruling for Colorado’s tribes could have far-reaching impact
An issue in this case is whether a tribe can offer online sports betting from servers located on tribal land to customers not situated on tribal land. This is exactly the type of sports betting that is currently operating in Florida. Wisconsin legislators are slated to vote on legalizing a similar style of sports betting in that state early next year.
However, no federally recognized tribe has won the right to provide online sports betting in this manner in a state where there is legal and regulated sports betting offered through state regulators.
If the Colorado tribes were to win this appeal, it would set legal precedent that would certainly encourage tribes in other states to follow suit and launch online sports betting through servers on tribal land.
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