Judge kills Colorado’s Ute Tribes sports betting lawsuit
The Southern Ute and Ute Mountain Tribes have lost their sports betting lawsuit against the State of Colorado. As with other tribes across the US, the Ute tribes are concerned about the rise of online sports wagering in their state. However, this time the judge threw the case out.
According to the tribes, sports wagering was not being managed properly. The tribes wanted wagering that happened within their sportsbook and processed on their grounds to be brought under Indian gaming rules. That means not paying the 10% tax that was introduced in 2019 with Proposition DD, when the federal government handed over the responsibility to states on gambling laws.
CPR News reports that the Ute tribes’ case was ultimately tossed from court, as Judge Gordon Gallagher ruled that “gaming occurs where the bettor is located.” As such, even if the Ute tribes run the sportsbook online, regardless of it is processed on their land or not, they are not exempt from taxation.
Judge Gallagher said in the published decision:
“This Court finds that the gaming occurs where the bettor is located — in this context, the location of the bettor is the only determining factor for whether gaming is on Indian land.
“If the bettor is on Indian land, the gaming activity is on Indian land and (the Indian Gaming Regulatory Act) applies. If the bettor is off Indian land, e.g., in Denver, the bettor is not engaged in gaming on Indian land and IGRA does not apply.”
Judge finds tech causes issues with 40-year-old Ute Tribes sports betting law
In a further explanation, Judge Gallagher determined that the nature of the technology advancements has collided with a 40-year-old law that can easily be interpreted wrong. Gallagher adds:
“While not without its definitional hurdles, a retrospective look back to when IGRA was enacted in 1988 shows a simpler technological time when both the gambler and the game, e.g., a roulette wheel, were likely in the same place at the same time.
“If the gambler and roulette wheel were on Indian land, IGRA applied. However, in 2025, a gambler can be in Denver and the electronic game processed through a computer server on Southern Ute Indian Tribe land or Ute Mountain Ute Tribe land. Where then does the gaming occur?”
Featured image: Southern Ute and Ute Mountain Tribes
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