Colorado
2 Colorado Tribes fire back at state, governor after court ruling walls off online sports betting
The leaders of two Native American reservations in southern Colorado recently called the state’s ban on their ability to partake in online sports betting an extension of the “troubling legacy” of broken agreements between governments and the Tribes.
A recent ruling by a federal court judge on the issue, along with a petroleum spill that has aggravated the relationship between the state and the Tribes, has apparently reopened old wounds. Healing them may happen in the coming weeks if the two sides can talk.
A money matter
Colorado voters narrowly approved legalized sports gambling here in November 2019. The amount of betting and the amount of tax paid to the state from it has grown substantially since then. In September alone, bettors from across the nation spent more than $99 million online with casinos in Central City, Black Hawk and Cripple Creek.
Reservation-based casinos are important to Native American economies. In 2023, tribally owned gaming operations nationally generated about $42 billion in revenue. Understandably, those reservations seek to maximize that cash flow.
In Colorado, both the Southern Ute and Ute Mountain Ute Indian Tribes started sports betting platforms through their own casinos six months after voters gave online gambling the green light. The Southern Ute Tribe launched the Sky Ute SportsBook through its Sky Ute Casino in Ignacio. The Ute Mountain Ute Tribe started its own platform at its Ute Mountain Casino in Towaoc.
According to court documents, the vendor for the Sky Ute Sportsbook received a letter from the Colorado Division of Gaming (CODOG) two weeks after it started.
“[W]e believe that your company is participating in sports betting in Colorado on behalf of the Southern Ute Indian Tribe without complying with Colorado gaming law,” the letter stated.
Later, the vendor working for the Ute Mountain Utes’ operation received the same letter.
The gaming division advised the Tribes to apply for the state betting license, the same license that all other Colorado casinos are required to obtain. With that license would come a promise to pay 10% of net sports betting revenue to the state. The casinos declined, shut down their sports books and sued instead.
“The Tribes claim that Colorado’s actions made their sports betting operations challenging and more expensive,” Judge Gordon Gallagher summarized in last month’s ruling, “effectively freezing them out of the sports betting market.”
Last month, Gallagher dismissed the case.
“Colorado explicitly authorized sports betting, a Class III game, throughout the state,” the Tribes complained in a joint press release following the judge’s decision. “But the State immediately stymied the ability of the Tribes to engage in that activity despite clear authorization under the Gaming Compacts, and instead, elected to benefit out-of-state gaming interests over its relationship with the Tribes. When the Tribes sought to challenge that conduct, the Administration chose to hide behind its immunity. These actions by the Polis Administration in refusing to honor the Gaming Compacts entered into with Colorado’s two federally-recognized Tribes represents one of the lowest points in State-Tribal relations in recent history.”
History
The first gambling approved on a Native American reservation came in 1979 when the Florida Seminoles opened a high-stakes bingo hall. Its legality was challenged, but the U.S. Supreme Court eventually ruled it was a legal operation.
In 1988, the Indian Gaming Regulatory Act (IGRA) was enacted, giving way to the growth of casinos on reservation land.
Much has changed since then. First, online sports gambling became legal in most states in 2018, thanks to a U.S. Supreme Court decision.
That same year, the Supreme Court struck down a 1992 federal law that banned commercial sports betting in most states. This spurred most states to authorize sports wagering, as Colorado did one year later. This gave those states regulatory authority over such gambling outside reservation boundaries.
Of course, one of the most significant changes to occur was in technology.
“[B]ecause of the ability to place an online bet from a cellular phone or other electronic device, bettors can engage in gambling from
almost anywhere,” Judge Gallagher stated in his ruling. “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?”
“This is a legal determination for the Court to make,” he stated.
In the end, Gallagher determined that any bet placed off-reservation is regulated by the state.
“That distinction is crucial in this action and fatal to the Tribes’ case,” Gallagher wrote. “A myriad of gambling houses offer legal sports betting in the State of Colorado. To engage in this service, they must remit 10% to the State. The State of Colorado has offered this possibility to the Tribes.”
Anger Spills Over
“The Tribe respects Judge Gallagher and appreciates the time he has given this issue,” the Tribes stated in their recent press release. “We believe a different result is mandated by federal law and will be evaluating how to move forward in the coming weeks.”
But after that expression of hope, the Tribes’ sentiments took a very different tone. The press release referred to the “bitter irony” of the situation – a legal setback over gambling funds, most of which are directed at the state’s effort to protect its water resources, while the Southern Ute Tribe deals with a nearly year-old gasoline spill that threatens the Animas River. Groundwater contamination has forced several residents from their properties.
In the months since CBS Colorado first reported the spill, the company whose pipeline is responsible for it has upgraded the extent of it, from 23,000 gallons to nearly 97,000. The spill is now the largest spill of its kind in Colorado since the state began tracking such incidents in 2016.
“We are confident that had this spill been in Denver instead of a remote, rural part of the state, the response would have been more robust,” the two Tribes stated in the press release. “The Southern Ute Indian Tribe has expended its own resources to ensure the local waterways and resources are protected in our region. It has done so without a single dollar of the millions of dollars in revenue the State has collected from sports betting, and without the benefit of additional revenue from tribally-run sports betting that could have been relied upon had the Gaming Compact been honored.”
The Tribes claimed Colorado Gov. Jared Polis failed to participate in a recent conference call with state and Indigenous leaders about the spill.
“Yesterday’s cancelled call between Governor Polis and (Southern Ute) Chairman (Melvin J.) Baker reflects an alarming lack of urgency on the Governor’s part to work cooperatively with the Tribe on this spill – it brings to mind the troubling legacy of how states have historically disregarded Tribal relations, an approach that is wholly unacceptable in today’s society,” they said. “The history of relations between Tribes and the state and federal governments is one of broken Treaties and agreements. The Polis Administration’s conduct is a reminder that those things we think are an artifact of a distant past still exist today.”
A spokesperson from Gov. Polis’s office responded with a statement:
“We deeply respect the government-to-government relationship the state has with the Ute Mountain Ute and Southern Ute Indian Tribes. We are glad that the court ruled in the state’s favor to ensure Colorado can continue to manage sports betting in a way that works best for Coloradans and our state, and continue funding important water projects around the state. We are dedicated to working together with the Tribes on gaming matters, and we look forward to ongoing conversations with the Ute Mountain Ute and Southern Ute Indian Tribes on this important issue.”
Elsewhere
The issue is not Colorado’s alone. Today, Indian gaming, as it is called, is played in 29 states. There are 532 gaming operations, which include casinos, bingo halls, travel plazas and convenience stores. These are owned by 243 Tribes. In total, they grossed almost $44 billion in fiscal year 2024.
However, according to Tribal Government Gaming, three of the 10 states containing the largest number of Tribes still do not have legal sports betting seven years after SCOTUS gave states the right to allow it. A ballot initiative is in the planning stages for 2028 in California.
Congress could enact a national standard for online sports betting through tribal casinos, but has not taken up the issue.
Adjacent to Colorado (from Tribal Government Gaming):
- All of Arizona’s Tribes can offer in-person wagering and digital betting on the reservation. But off reservation, the 10 Tribes licensed to offer online sports betting are regulated by the state and pay the same 10% tax rate as commercial operators.
- Nebraska voters agreed to legalize sports betting on the November 2020 ballot, and three years later, the first bets were taken. The Winnebago Tribe is a key player on the Nebraska gaming scene, but in this case, the Tribe is regulated and taxed by the state.
- Oklahoma Tribes are hoping to pursue legalizing sports betting when the current governor’s term limits are reached in 2027.
- New Mexico’s Tribes have their own regulatory body and are not beholden to the state. They also do not pay taxes.
Colorado
1up Arcade Bar in LoDo pulls the plug as owners prep Lakewood location
It’s game over for Colorado’s first arcade-bar as The 1up LoDo pulls the plug on its pinball machines and video game cabinets for the last time.
The spot, which billed itself as the first of its kind in the state, ceased operations on Monday, June 22, in anticipation of a 13,000-square-foot 1up location opening in Lakewood’s Belmar development.
“Our new home will occupy the former Lucky Strike space, at 415 Teller St. in Lakewood, and preserve much of the underground atmosphere that made the original LoDo location so memorable,” the owners wrote on Facebook on Monday. “It will be the largest 1up Arcade Bar we have ever built and will feature our most extensive collection of arcade games, pinball machines, redemption games, and attractions to date.”
The company decided to close the LoDo location at 1926 Blake St. in Denver, due to “the combination of changing conditions in downtown Denver and the increasing financial pressures facing the hospitality industry made it clear that it was time for the next chapter,” they wrote.
The original 1up opened on March 23, 2011, as the first full-service bar with a large collection of vintage video game cabinets, pinball machines, modest Skee-Ball lanes, and oversized Jenga blocks. A popular stop-off before and after Rockies games, concerts and downtown festivals, its subterranean lair became a reliable draw in a neighborhood otherwise dominated by TV-plastered sports bars and trendy, short-lived nightclubs.
“Today, gaming has become a major part of the hospitality landscape, and while the industry has evolved in countless ways, we are incredibly proud to have helped pioneer that movement here in Colorado,” owners wrote. “While our original location has closed, The 1up Arcade Bar is not going away. Our Colfax, Greenwood Village, and Westminster locations remain open and will continue serving the communities that have supported them for years.”
The closure hits just as two other LoDo businesses shutter, including the Rock Bottom Restaurant & Brewery on 16th and Curtis streets, and Church and Union on 17th Street, one of four restaurants from Jamie Lynch of “Top Chef” fame.
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Colorado
The Colorado River is vanishing — and the fixes are getting weird
The crisis on the Colorado River is simple: The seven Western states that border the essential waterway use more water than it contains. Chronic overuse has drained its two largest reservoirs, Lake Powell and Lake Mead, and a two-decade drought cycle has pushed them to the point of collapse.
The dream solution to this crisis is an agreement among all involved to use less water. Such a deal would decide who must reduce consumption, which means asking which cities would ban irrigating lawns and washing cars and which farmers would rip up their fields.
This has proven impossible. The states have been trying to work this out since the last dry spell, in 2022, but talks have ended in frustration and name-calling. The main sticking point is between the “Upper Basin” states led by Colorado and Utah (along with Wyoming and New Mexico) and the “Lower Basin” states of Arizona, California, and Nevada. Each side believes the other has a legal and a moral responsibility to cut usage during dry years. The stalemate means the Trump administration must design a schedule of restrictions ahead of a crucial deadline in September. So far, Interior Secretary Doug Burgum has balked at resolving the quarrel.
Instead, the administration is turning to a far less controversial plan: Throw money at the problem. The Interior Department and Congress are pondering a slew on projects that could increase supply, a reversal of Trump’s zeal for cutting federal grants. The seven state governors have sent Washington a “wish list” of over $50 billion, and several startups have their hands out as well.
Federal investment makes sense given the scale of the problem and the intractable impasse, said Jennifer Pitt, the Colorado River program director at the National Audubon Society and an expert on the governance of the river
“It is something easier for people to agree on,” she said. “This is a slow moving crisis, but it is a crisis, and we do see the federal funding come in to address crises in other parts of the country. Just because this is a slow moving one doesn’t make it any less worthy.”
During a Senate committee hearing last week, the Interior Department’s top water official, Andrea Travnicek, said the agency has yet to vet the wish list. She didn’t offer a specific funding request, and urged lawmakers to be “thoughtful” about how they spend taxpayer money. But senators of both parties seemed to encourage new investments. “The basin should not be forced to choose between stabilizing the present and negotiating the future,” said Senator Martin Heinrich, a Democrat from New Mexico.
The possibility of new funding marks a return to the policy of the Biden administration. During the last extreme drought in 2022, the Interior Department paid farmers billions to leave their fields fallow, but that money, from the Inflation Reduction Act, has almost run dry.
The difference now is that the roster of proposals is far more ambitious, and some far less certain to bolster the basin’s water supply. They range from desalination plants to desert groundwater pipelines to forest ecosystem restoration.
Here are a few of the major solutions state officials and companies are proposing.
Desalination
As the Colorado River crisis has deepened, some cities in the Southwest have eyed desalination, which extracts salt from sea water. A company called Poseidon Water opened such a plant in San Diego in 2015, and tried for decades to open another in Los Angeles. The wish list to Interior requests as much as $6 billion to build one in Baja California to supplement Arizona’s vanishing Colorado River supplies.
The Interior Department also signed an agreement in early June with San Diego’s water agency that explains how that plant would help. Rather than sending treated seawater inland, states would pay the city to take less from the Colorado River. Arizona stands to lose the most water during drought years, and it would be the most likely to participate in that exchange.
But desalination is expensive, requires enormous amounts of electricity, and state-of-the-art industrial technology. The Poseidon facility cost $1 billion, but San Diego has diversified its water portfolio so much that it no longer needs all the water it must purchase from the plant. Trading water could help it offset some of that cost.
Taming tech and power
Nevada uses less water than any state on the river, and has cut usage in Las Vegas by replacing grass with artificial turf. It is now seeking money to slake some of its last thirsty industries — power plants and data centers. These facilities need a fraction of what agriculture requires, but dominate usage in The Silver State.
The state’s wish list includes $300 million to retrofit its largest natural gas plant and reduce water consumption by an amount equivalent to more than 3,000 average homes. It also seeks $650 million to install zero-water cooling systems in its airports, schools, and industrial facilities. These closed-loop systems, which recirculate the same cooled water or, in the case of data centers, blast hot servers with cold air, have become more popular in Western states amid concerns about the tech boom’s growing thirst.
CN-STR / AFP via Getty Images
Squeezing rain from the clouds
Whereas Lower Basin states like Arizona and California can draw from the Colorado River’s big reservoirs on demand, northern states at its headwaters only receive the rain and snow that feed it.
These Upper Basin states have been trying for decades to engineer more precipitation, with support from Washington. It sounds futuristic, but cloud seeding — spraying salt or silver iodide into clouds, forcing them to release water they might otherwise retain — has proven fairly effective on a small scale. Utah spends a few million dollars each year doing this, and officials say it could boost annual snowpack by as much as 10 percent.
In addition, a few startups are pitching cheaper and more scalable versions of this technology. Rain Enhancement, a Florida-based outfit, says it has brought about 15,000 homes’ worth of rain to a river tributary in Utah this year; another, Rainmaker, says it can produce 1,000 times that much by 2031. That’s enough to close the supply gap on the river. That promise is fanciful, but these companies could secure federal funding from an administration that loves the tech industry.
Mining a hoard of desert groundwater
The West teems with companies that have promised miracles, from building a 300-mile pipeline to tapping a hoard of groundwater in Nevada. But perhaps no project has had a longer and more turbulent history than Cadiz, a proposal, almost 30 years old, to export groundwater from an aquifer in the Mojave Desert.
This has drawn vicious opposition from environmentalists and the late California Senator Dianne Feinstein, who called it a “grave threat” to the desert. Cadiz experienced several setbacks during the Biden administration: It lost a federal permit, California ended its pipeline lease, Arizona declined to support it, and its stock price fell to almost zero. But Susan Kennedy, its CEO, says Cadiz is flowing again with a funding agreement from the Interior Department to study exchanges between Cadiz and the Colorado River.
The company still needs to finish two pipelines, one to the Central Valley and another to the aqueduct that carries Colorado River water to California. It also must build a plant to remove contaminants in the water, but Kennedy believes she can have the tap running by 2028.
“This isn’t a competition, it’s an all-of-the-above situation,” she said of the situation on the river. That may be so, but the seven states did not include Cadiz on the “wish list” sent the Interior Department.
Colorado
Northwest Colorado state parks experiencing water shortages, reduced boating access
Impacts from Colorado’s extreme drought conditions are hitting several state parks in the state’s northwest corner.
Colorado Parks and Wildlife announced emergency water conservation measures and boating restrictions at both Sylvan Lake State Park in Eagle County and Rifle Gap State Park in Garfield County, according to a Monday, June 22 news release.
Both parks are located within some of the more extreme drought conditions in Colorado. According to the June 18 U.S. Drought Monitor, Eagle County and western Garfield County are experiencing exceptional drought conditions — the worst measured by the monitor.
Sylvan Lake State Park
At Sylvan Lake State Park outside of Eagle, the park’s main source and well, Zurcher Spring, has run completely dry and shows no signs of recovery due to the extreme drought conditions in the region.
To maintain basic operations at the park, Parks and Wildlife has transitioned to using a secondary water source, Cowboy Spring. This spring is producing 2,000 gallons of water per day, and with park usage ranging between 2,500 and 3,000 gallons daily, park staff shut off all 17 public water spigots in the state park.
“We are using more water than we can currently produce, and are on track to run out,” said Sylvan Lake State Park Manager Matt Westerberg in the news release. “We know turning off the water spigots isn’t ideal, but our hope is this will save enough water to keep the main campground shower building operational for visitors.”
Despite having a workaround, Parks and Wildlife is asking visitors to help out by bringing their own water. Visitors can fill their tanks at the visitor center, which operates on a separate, functioning well system.
Rifle Gap State Park
A little further west in Garfield County, Rifle Gap State Park is experiencing impacts brought on by the winter’s historically low snowpack and early snowmelt. While the park typically experiences water declines in the late summer, they are hitting the state park months ahead of schedule, Parks and Wildlife reported.
To combat this, Parks and Wildlife is reducing motorized boat launching to a single lane and has pulled all courtesy docks from the water. Access for hand-launched vessels like kayaks, canoes and stand-up paddleboards will remain unaffected by the closure.
“With our boat ramp down to a single lane, launching and loading will take significantly longer than usual,” said Rifle Gap State Park Manager Brian Palcer in the release. “We are asking all boaters to practice patience, pack an extra dose of courtesy for their fellow recreators at the ramp, and expect delays. We want everyone to have a safe, enjoyable day on the water despite these challenging conditions.”
Parks and Wildlife encourages boaters to exercise caution as low water levels have also exposed shallow, unmarked hazards across the reservoir, including uneven bottom topography, fish habitat structures, rocks and tree stumps. With these conditions, the agency also issued a reminder that life jackets are required on all vessels.
If the reservoir continues to recede at its current rate, Parks and Wildlife said the water levels will drop entirely below the concrete boat ramp, forcing a complete closure of the ramp to motorized watercraft for the remainder of the season in early July.
At both parks, the most current information can be found on their individual Facebook pages and websites on CPW.State.CO.US/state-parks.
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