California tribes challenge Kalshi after US$27 million NFL Opener
While prediction market Kalshi experienced a US$27 million trade volume for the beginning of the NFL, three tribes in California asked a federal judge to prevent Kalshi from offering event contracts on tribal lands.
If granted, the lawsuit would require the implementation of geofences in the state to prevent users on tribal land from using the platform.
The lawsuit also asks for a ruling to prevent Kalshi from using advertisements that the tribes believe are “false and misleading,” including those that state Kalshi’s event contracts are “legal in all 50 states.”
This is not the first time that Kalshi has faced this kind of objection from native tribes, as in July, the Chicken Ranch Rancheria of Me-Wuk Indians, the Blue Lake Rancheria, and the Picayune Rancheria of the Chukchansi Indians sued Kalshi.
The lawsuit alleges that the sports betting markets that the platform offers breach the Indian Gaming Regulatory Act and the tribes’ Tribal-State Gaming Compacts with California.
Kalshi has argued that they are not in breach of the Act because, with their platforms, you are trading against other users rather than the traditional sports wagering mode of taking on the house.
The tribes disagree with this assessment in the filing, “Gambling has always been a subject of concern in the United States. In every other context, gambling has been either prohibited as a public nuisance or strictly regulated because of the potential harms associated with unregulated gaming.”
While fans used Kalshi at the start of the NFL season, players and league personnel were warned not to use prediction platforms because event contracts reflect traditional sports betting.
Dig deeper
2025/01/22: Tribes work to unite behind single sports betting policy for California
2025/04/01: FanDuel and DraftKings made peace with California tribes over sports betting expansion
2025/01/23: Prediction market Kalshi launches event contracts on sports
2025/04/30: Federal Judge says Kalshi can continue in New Jersey
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