Ho-Chunk Nation sues Kalshi, alleging illegal sports betting
The Ho-Chunk Nation Native American tribe has sued online financial exchange Kalshi, accusing the platform of engaging in illegal, unregulated sports betting on tribal lands.
Kalshi, which allows users to trade “yes” or “no” options on real-world events ranging from sports games to elections, has denied being a gambling site.
The lawsuit also names Robinhood and alleges that by allowing users to wager on sports outcomes, Kalshi and Robinhood violate the Indian Gaming Regulatory Act, which requires tribal-state compacts for gambling operations.
The complaint states, “this is an action brought by the Ho-Chunk Nation (the “Nation”), a federally recognized Indian Tribe, seeking a preliminary and permanent injunction against the defendants to prevent them from engaging in illegal sports gambling on the Nation’s Indian lands in direct violation of the Indian Gaming Regulatory Act.”
The tribe argues that Kalshi’s activities siphon business away from its casinos, while blurring the line between regulated financial markets and banned gaming.
Wisconsin law permits sports betting only through tribal contracts, including with the Ho-Chunk and Potawatomi.
Kalshi said its offerings fall under the Commodity Exchange Act, which regulates event contracts.
However, the act bans contracts tied to activities such as gaming or terrorism. The tribe claims Kalshi’s sports-related contracts violate these restrictions and should be halted by the Commodity Futures Trading Commission.
The Ho-Chunk Nation also is seeking damages, disgorgement of profits, and attorney fees.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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