Two tribes filed a lawsuit against Democrat Gov. Jared Polis and Christopher Schroder, director of the Colorado Division of Gaming, regarding taxation of online sports betting.
The Southern Ute Indian and Ute Mountain Ute Tribes allege they’ve been unfairly blocked by the state from engaging in online sports betting in violation of a state-tribal compacts. Documents entered in the case show the two sides have been engaged in the matter for approximately four years.
Proposition DD, passed by Colorado voters in 2019, created a 10% tax on casino house winnings to pay for the state’s water plan. It allowed the state’s casinos to offer in-person and online sports betting. However, the lawsuit contends the tribes don’t have to pay the 10% tax under federal tribal gaming law.
"Faced with this ongoing injustice, the Southern Ute Indian Tribe is now taking the unfortunate but necessary step of legal action,” Melvin Baker, chairman of the Southern Ute Indian Tribe, said before the American Indian Affairs Interim Study Committee earlier this week. "This is the first time we have been forced to file a lawsuit against the State of Colorado in decades.”
The gaming compacts – in place for approximately 30 years and approved by federal and state government – allow tribes "gaming activities and bet amounts that are identical to the activities and bet amounts that are authorized in the State of Colorado,” according to information provided by the Southern Ute Indian Tribe. The tribes asked the court for a preliminary injunction to compete in an industry restricted to non-Indian and private businesses since 2020.
"This lawsuit is not a decision we take lightly,” Baker said. "It is about securing a fair resolution and ensuring the state lives up to its obligations to the tribes as outlined in agreements and federal law. We will fight tirelessly to hold the state accountable for its commitments.”
Multiple media outlets reported Polis’ office declined to comment on the pending litigation.
https://www.thecentersquare.com/colorado/article_f0ce9dca-3f9d-11ef-88d2-032362b4d683.html