Colorado tribes want to offer online sports betting. But their tax status, and other issues, has some people worried that allowing the Southern Ute and Ute Mountain tribes to offer remote wagering on professional sports might siphon valuable revenue away from Colorado water projects.

The Colorado Department of Revenue declined to comment on the specifics of the dispute, while tribal representatives say they are frustrated with the state’s refusal to allow them to offer it.

In November, a proposition referred to the ballot by lawmakers in House Bill 1436, will ask voters to allow the state to keep more of the revenue generated by sports gaming. Taxes collected on those bets, which were authorized in 2019, are projected to generate $34.2 million in tax revenue in the state’s next fiscal year, which begins July 1.

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