Kalshi, the leading North American prediction market, argues that the location of placed bets does not contradict the Indian Gaming Regulatory Act (IGRA).
The outcome betting provider has been involved in courtroom battles with the Blue Lake Rancheria, Picayune Rancheria of the Chukchansi Indians, and Chicken Ranch Rancheria of the Me-Wuk Indians (the California Tribes) since July 2025.
Kalshi is in a heated debate with California Tribes
We reported that the tribes had been in a protracted legal debate with Kalshi, and the Ho Chunk Nation has been vocal in its derision of the betting operator.
Saying, “While masquerading as novel commodities and futures products, these event contracts are, substantively, nothing more than illegal, unregulated wagers on the outcomes of sporting events.”
BREAKING: Three federally recognized California Indian tribes have sued Kalshi and Robinhood in CA federal court, alleging that the two companies are unlawfully engaging in sports betting by offering sports-outcome event contracts on the tribes’ Indian lands in violation of IGRA. pic.twitter.com/renw1XBtjz
— Daniel Wallach (@WALLACHLEGAL) July 23, 2025
Kalshi claims that the company’s partnership with co-defendants Robinhood Markets, Inc., and Robinhood Derivatives LLC (Robinhood) does not constitute a breach of the IGRA and has invoked a portion of the Unlawful Internet Gambling Enforcement Act (UIGEA) to support its position that geography is not a concern for bets placed on its app.
Critics have seen the portion of the UIEGA being used as a flimsy defence, but Kalshi does fall under a specific branch of the Commodity Exchange Act (CEA).
This means the betting providers’ argument may exempt them, as wagering, specifically referred to as “bet or wager” through Kalshi, relates to “any transaction conducted on or subject to the rules of a registered entity or exempt board of trade under the CEA.”
Legal loophole gives Kalshi a sliver of hope
“Kalshi does not house servers on Indian lands. Kalshi does not employ personnel on Indian lands. Kalshi conducts no business whatsoever on Indian lands,” said the New York-based company.
This could mean that Kalshi is exempt as an exchange that falls under the CEA; however, critics point out that these possible technical and legal loopholes concerning the company are outdated, and that wagers can be placed on Tribal Lands via the Robinhood app, which would constitute a breach of the IGRA.
Kalshi also argued that it would suffer irreparable financial harm as a result of the injunction presented by the California Tribes in the U.S. District Court for the District of California.
The predictions provider stated that it would have to cease trading to regulate the location of bets placed to align the locations of Tribal Lands.
Whatever the outcome, the hearing on the possible injunction on 23 October 2025 is set to be a marquee affair and could lead to serious legal disputes over tribal relationships and the future of the IGRA.
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