Claim: Federal tribal gaming law only applies to online bets when the bettor is physically located on tribal land.

In July 2024, the Southern Ute Indian Tribe in Colorado took a major step that sparked a large legal debate about online sports betting. On July 9, they filed a federal lawsuit against then-Governor Jared Polis and the Colorado Division of Gaming (CDOG). Their main complaint was that the state was not allowing them to offer online sports betting to people across Colorado, even though the state legalized sports betting in 2019.

In Sept/Oct 2024, the Ute Mountain Ute Tribe joined this fight. They filed a Second Verified Amended Complaint, and records from Justia and CourtListener show that both tribes combined their claims into one single case. Instead of handling two separate lawsuits, the tribes decided to work together.

To understand this case, we first need to understand the law at the center of it: the Indian Gaming Regulatory Act, known as IGRA.

What is IGRA, and why does it matter here?

Congress passed IGRA in 1988 to regulate gambling activities run by tribal nations. IGRA only applies to gambling that happens on tribal lands. It defines tribal lands as reservations, certain lands that tribes received later, or dependent tribal communities that fall under the federal government’s authority.

IGRA divides gambling into three classes. Class III gaming includes casino-style gambling and sports betting. Any Class III gambling must be allowed by a tribal-state compact, which is a formal agreement between a tribe and a state.

The National Indian Gaming Commission provides a full explanation of this law. This detail is important because IGRA’s power stops at tribal borders. The law regulates gambling only when it happens “on Indian lands.” It does not automatically control bets or gambling activities taking place away from tribal land unless a compact specifically allows it.

Why is the bettor’s location such a big issue?

The entire dispute in this case comes down to where the bettor is located at the moment they place an online bet.

The tribes want to offer online sports betting to anyone in Colorado, even if the bettor is not physically on tribal land. They believe that since Colorado legalized sports betting statewide through Proposition DD in 2019, their compacts should allow them to offer bets on the same statewide basis.

Colorado officials argue something very different. They say that once a bettor is off tribal land, state law controls the bet, not tribal law. From the state’s perspective, tribes cannot extend their jurisdiction to the entire state unless a compact clearly gives them that authority.

What did the tribes request in court?

In their July 2024 lawsuit, the Southern Ute Tribe asked the court to approve “off-Reservation sports betting.” Their Tribal Sports Betting Rules explain how they want to use geofencing technology to allow people anywhere in Colorado to place bets through their online system.

The tribe made additional filings in September 2024. These filings repeat their argument that Colorado is interfering with rights they believe they already have under the compact. More details about these arguments appear in the tribes’ opposition document.

To resolve this, the court must decide how far IGRA’s authority extends and whether the tribes’ compacts allow them to regulate betting outside their borders.

What does the 1995 Compact actually say?

To answer that question, we need to look at the tribes’ existing compact with Colorado.

The 1995 Ute Mountain Ute Tribe–Colorado Gaming Compact is very explicit about where tribal gaming may take place. The compact, available on the official website of the U.S. Department of the Interior, states that it governs Class III gaming only “on Indian Lands.” You can read the compact here: https://www.bia.gov/sites/default/files/dup/assets/as-ia/oig/pdf/508_compliant_1996.03.19_ute_mountian_ute_tribe_tribal_state_gaming_compact.pdf

The compact gives the Tribe permission to offer any Class III game that is legal in Colorado, but only inside gaming facilities located on tribal land.

The compact also explains:

• a gaming facility must be located on tribal land
• a gaming operation refers to gambling activities conducted on the Reservation
• the Tribe’s Gaming Commission regulates and licenses gaming on tribal land
• revenue from gaming must support tribal programs

The Department of the Interior’s review letter confirms that this compact follows IGRA’s rules. It does not authorize the Tribe to run any Class III gambling off tribal land, including online bets placed from somewhere else in Colorado.

Our Verdict: TRUE

The claim is accurate. Under IGRA and under the terms of current tribal-state compacts, federal tribal gaming law applies only when the bettor is physically on tribal land.

IGRA limits Class III gambling, including sports betting, to tribal lands unless a compact specifically allows activity somewhere else. The 1995 Ute Mountain Ute Tribe–Colorado Gaming Compact clearly restricts tribal gambling operations and regulatory authority to tribal land. It does not permit statewide online betting under tribal control.

In October 2025, U.S. District Court Judge Gordon Gallagher ruled that online sports betting occurs where the bettor is physically located, and therefore IGRA does not apply to bets placed off tribal land, dismissing the tribes’ lawsuit on that basis.

In short, tribal sports betting rules apply only when the bet is placed on tribal land.

Our Fact-Checking Sources:

• Southern Ute federal lawsuit complaint, July 2024: turtletalk.blog

• CourtListener docket for Southern Ute Indian Tribe v. Polis: CourtListener

• National Indian Gaming Commission explanation of IGRA: NIGC.gov

• Southern Ute Tribal Sports Betting Rules in complaint, July 2024: turtletalk.blog

• Tribes’ opposition to motion, October 2025: turtletalk.blog

• 1996 Ute Mountain Ute Tribe-Colorado Gaming Compact, DOI site: BIA.gov

• Ute Mountain Ute compact gaming facilities section, 1995: sbg.colorado.gov

• Department of the Interior review letter for Ute Mountain Ute compact, 1996: BIA.gov