Nearly seven years after the Supreme Court gave states the right to decide if they wanted legal sports betting , three of the 10 states with the biggest number of tribes do not have it . In California , the tribes are clearly driving the conversation and have plans to bring a ballot initiative to legalize in 2028 .
In Oklahoma , Indian Country is waiting for Governor Kevin Stitt to term-limit out for the chance . And in Minnesota , where the tribes , charitable gaming and horse racetracks seemingly hammered out a deal ahead of the 2025 session , hopes all but died in committee on the eve of Valentine ’ s Day .
For those states yet to legalize sports betting or considering online gaming , the current landscape offers much to study and learn from . Here ’ s a look at the highlights from 10 states in which Indian Country offers legal digital or retail sports betting .
ARIZONA
Tribes in Arizona gave up the right to exclusivity when they agreed to a deal in 2021 that allotted 10 digital sports betting licenses to Indian Country and 10 to professional sports teams . The hitch is that there are 16 gaming tribes and so far , only eight professional sports teams that meet that definition . So while six Arizona tribes are shut out of offering digital betting , there are two unclaimed pro-sports team licenses .
Under the terms of the compact , 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 percent tax rate as commercial operators .
COLORADO
There is currently no tribal digital sports betting in Colorado . In 2019 , Colorado ’ s legislature was among the first to legalize digital sports betting after the Professional and Amateur Sports Protection Act ( PASPA ) was overturned . At that time , the Southern Ute and
Ute Mountain Ute tribes opened retail sportsbooks and eventually began offering digital sports betting . Neither tribe paid tax to the state on bets taken in-person or online .
The Southern Utes partnered with US Bookmaking and became the first tribe in the U . S . to offer off-reservation online wagering in 2020 . But by 2023 , both tribes had shuttered their sites due to a conflict with the Colorado regulator . Last summer , the Southern Utes filed suit against the state .
The Mountain Utes later joined . In the lawsuit , the tribes say the state has breached their existing gaming compacts , which date to the 1990s . The compacts allow the tribes to have “ those gaming activities and bet amounts that are identical ” to ones authorized in the state . In essence , whatever commercial operators are allowed to offer , the tribe can too .
But the state argues that while that may well be true , if the tribes want to offer digital betting , they should pay the state a 10 percent tax and be regulated by the state . The tribes argue that is a violation of their sovereignty . The workaround for many tribes in this situation is to pay the state a revenue share or a set fee for the right to offer digital betting .
According to the complaint , the state ’ s actions are “ motivated by money . Sports betting regulated by Colorado is subject to a 10 percent tax , whereas no such tax could ever apply to tribal gaming under federal law . Therefore , the state sought to freeze the tribe out of internet sports betting .”
Baker said that his tribe has little appetite for legal action , but was forced to “ take critical action to uphold equal and fair treatment of our sovereign rights .”
A solution would be to renegotiate the compacts and settle on annual payment to the state for the right to offer digital betting .
CONNECTICUT
Like the Arizona tribes , Connecticut ’ s two tribes agreed to give up exclusivity and be regulated and taxed by the state . The Mashantucket Pequot and Mohegan tribes each have a casino retail sportsbook , and partnered with DraftKings and FanDuel , respectively , for digital wagering . The law they supported also allows the Connecticut Lottery to operate a digital platform and 15 stand-alone sportsbooks . The lottery first partnered with Rush Street Interactive , and then moved on to Fanatics Sportsbook .
The tribes , like the lottery , are taxed 18 percent of adjusted gross revenue for digital betting . They also must adhere to any changes to the state law . There is currently a bill in the state legislature that would put a cap on how much a sportsbook can hold . The one-page proposal does not indicate what the maximum would be .
FLORIDA
Florida ’ s Seminole Tribe may be the envy of tribes across the U . S . when it comes to gambling and compacting with the state . While Colorado ’ s tribes are suing in the hopes of getting a similar deal , the Seminoles and the state easily agreed to a hub-and-spoke model that not only allows the Seminoles to offer digital betting on their own platform , but gives them a cut of any sports betting offered by anyone else in the state . Parimutuels can partner with the Seminoles to offer sports betting , but must pay the tribe 40 percent of revenue .
Under the terms of the 2021 compact , the Seminoles must pay the state $ 2.5 billion over the first five years in revenue share for all current forms of gambling . In total , the tribe agreed to pay the state $ 20 billion over 30 years . The Seminoles do not make their financials public .
The Seminoles own seven casinos around the state , and last November made an agreement with West Flagler and Associates ( WFA )— the plaintiff in the federal case that could have nullified the compact — to offer betting on jai alai at WFA ’ s parimutuels .
In their deal , the Seminoles maintained their sovereignty and exclusivity . Having a 30-year compact that protects the tribe from being regulated and taxed by the state also means that the Seminoles are protected from the whims of the state legislature . In several other states , lawmakers have already increased sports betting taxes on commercial operators .
The compact lays the groundwork for the Seminoles to offer online casino , as well . www . tribalgovernmentgaming . com 17