In a groundbreaking legal battle that could have far-reaching implications for the future of sports betting in Colorado, the Ute Mountain Ute Tribe has filed a federal lawsuit against the state and Governor Jared Polis over the rollout of sports betting in the state.
The lawsuit, filed in the U.S. District Court of Colorado, alleges that the state and Governor Polis violated the tribe’s exclusive gaming rights under the Indian Gaming Regulatory Act (IGRA) by allowing non-tribal entities to offer sports betting in the state without the tribe’s consent. The Ute Mountain Ute Tribe operates the Ute Mountain Casino in Towaoc, Colorado, and the tribe contends that they have the exclusive right to offer sports betting on their reservation under their gaming compact with the state.
The tribe argues that the state’s decision to legalize sports betting and allow commercial entities to offer it off-reservation has undermined the tribe’s ability to generate revenue and provide essential services for its members. The lawsuit seeks an injunction to halt the state’s current sports betting operations and compel the state to renegotiate its gaming compact with the tribe to include sports betting.
In a statement, the Ute Mountain Ute Tribal Chairman, Manuel Heart, said, “We have a legal right to offer sports betting on our reservation, and the state’s actions have deprived us of the opportunity to do so. We have no choice but to seek justice through the courts.”
The lawsuit comes as Colorado has seen a significant expansion of its sports betting market since it was legalized in 2019. The state reported over $2.3 billion in sports betting handle in 2021, making it one of the largest markets in the country.
In response to the lawsuit, Governor Polis’s office issued a statement saying, “We are aware of the lawsuit and are reviewing the allegations. We believe that sports betting is a legal activity in Colorado, and we will vigorously defend the state’s position.”
Legal experts say that the outcome of the lawsuit could have significant implications for the future of sports betting in Colorado and other states with tribal gaming compacts. If the Ute Mountain Ute Tribe is successful in their legal challenge, it could open the door for other tribes to assert their exclusive gaming rights and potentially disrupt the rapidly expanding sports betting market in the state.
