A three-judge federal appeals court has unanimously ruled in favor of two California tribes, the Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians. The court is seeking to prevent Kalshi, a prediction-market operator, from offering sports wagers on tribal land without authorization.
The Ninth Circuit determined that Kalshi’s sports event contracts likely violate the Indian Gaming Regulatory Act (IGRA) when purchased on tribal territory. The case has been sent back to the district court to consider a preliminary injunction.
This ruling raises important questions about whether federally regulated contracts linked to sports outcomes can function on Indian lands outside tribal gaming laws. Judge M. Margaret McKeown stated that the essence of the contracts constitutes sports gambling, regardless of Kalshi referring to them as swaps. The court noted that a wager is made on tribal lands when purchased physically within that territory, despite Kalshi’s operations being based elsewhere.
Both tribes have regulatory frameworks that prohibit unauthorized gaming, supporting the court’s finding that Kalshi’s activities conflict with the IGRA. Kalshi’s defense, which argued that federal commodities laws overshadowed the tribes’ claims, was dismissed by the court, emphasizing the distinct nature of the regulations involved.
