The Southern Ute and Ute Mountain Tribes of Colorado would like to introduce online casinos to the state. These tribes already run two brick-and-mortar casinos in the southwestern corner of the state – the Sky Ute Casino Ignacion and the Ute Mountain Casino Towaoc.

There are currently no online casinos that are based in Colorado (but there are online sports betting sites). So, by expanding into the online gambling market, the native tribes could become market leaders in the state.

However, the current lack of online casinos in Colorado doesn’t mean that online gambling is non-existent in the state. There are many offshore casinos that Coloradans can access. Besides allowing international players, Khadija Bilal shares that these casinos can also offer Coloradans big welcome bonuses and a wide game selection.

So, the tribes of Colorado would have a lot to compete against should they ever be allowed to enter the online market.

However, the chances of the Ute Tribes being granted the ability to create online casinos are small – at least for the foreseeable future. Colorado lawmakers have once again raised concerns over the impact that tribe-run online casinos would have, which has put the development of tribal online casinos on hold.

Specifically, state officials have raised concerns regarding the tax status of the tribes. Representative Dylan Roberts recently pointed out that allowing tribes to operate casinos online wouldn’t grant the state any tax benefits.

Casinos that are based on tribal land in Colorado are currently tax-exempt. This means that the state makes no tax revenue from the two casinos based near the Four Corners.

If the tribes were to operate the proposed online casinos from their brick-and-mortar establishments, it could mean that the state wouldn’t be able to take tax from online gambling revenue.

The problem of online casinos and taxes is greatly disputed throughout the US, especially where tribal-run casinos are concerned. The question of whether remote gambling actually takes place on tribal land has led to many legislative disputes across the country.

Given that remote gamblers technically aren’t gambling on tribal land, some would argue that gambling revenue raised from online facilities should be taxed. However, others argue that since gambling is processed on tribal land it should not be taxed.

Either way, the prospect of allowing tribes to run online casinos in Colorado remains a contentious issue in the state. The ongoing dispute coincides with lawmakers’ attempts to increase the amount of revenue they can take from sports gambling facilities.

Currently, there is a $29 million revenue cap on sports betting – it is currently illegal for the state to collect revenues over this amount. However, with sports betting revenue projected to increase to $34.2 million within the next fiscal year, lawmakers are looking to scrap the current cap.

The proposal to remove the cap is explained in detail in House Bill 1436, which voters can cast their opinion on this coming November. The bill proposes to increase the current cap so that more money can be raised for water programs.

If the bill receives approval, the state will be able to collect more revenue from the casinos that currently offer sports betting options in Colorado.

If the state were to approve of the tribes’ proposal to set up online casinos and sports betting facilities, it could cast doubt on how much extra tax the state could collect. With more online gambling options available, fewer Coloradans will be using the taxable options.