Colorado Tribes Continue Fight for Mobile Sports Betting

The Ute tribes aren’t done fighting for a way into Colorado’s online sports betting market.

The tribes are elevating their lawsuit against the Centennial State to an appellate court this week. The lawsuit alleges that the state is violating the Indian Gaming Regulatory Act by not allowing them to offer mobile sports betting. A US District Court rejected this argument in October, forcing the tribes to appeal.

Unlike most US states, Colorado allows commercial operators to offer casino gambling in the state. It legalized limited gambling in certain cities in 1990, including around the massive Denver area. 

The Ute tribes own two casinos in the state, but they are located in the southwest corner of Colorado. It’s far from major cities in Colorado, Utah, Arizona, and New Mexico, resulting in less volume than most commercial operators.

Colorado’s tribes have been fighting to overturn the state’s sports betting rules since they were first passed, but there is reason to believe things could be different in 2026.

Higher Court Could Yield Better Results

While the October loss wasn’t ideal, the ruling left open hope for victory in higher courts. 

Judge Gordon Gallagher made his ruling based on the belief that mobile betting takes place where the bettor is located. This topic has been at the center of mobile sports betting lawsuits across the US, but many rulings have taken the opposite stance.

One prime example is Florida’s Gaming Compact. The compact was mired in lawsuits because the State handed sole control of the industry to the Seminole Tribe. They established that betting occurs where the sportsbook’s servers are located, which is on tribal lands. This allowed Florida to skip passing new laws, instead expanding its existing gambling compact under IGRA.

Lawsuits delayed mobile sports betting in the state until the US Supreme Court. Several higher courts sided with the state, creating a legal precedent for betting taking place where the wager is processed. 

Colorado’s Ute Tribes could also benefit from lawsuits against prediction market operators, who are arguing the same point. If more courts side with the industry, it would clear a path for the tribes to score a victory.