Supreme Court Urged to Uphold Tribal Gaming Rights in Flaherty v. KalshiEX
Date: October 8, 2026
On this significant date, a coalition of over 140 Tribal Nations and organizations petitioned the U.S. Supreme Court to address the case Flaherty v. KalshiEX. They are urging the Court to reject initiatives by Kalshi and other prediction market companies that aim to conduct sports betting in violation of existing regulations.
The amicus brief emphasizes that Kalshi’s offerings, described as sports-event contracts, effectively constitute sports bets. Yet, the company is allegedly circumventing established sports betting rules. A major concern raised by the tribes is Kalshi’s operation on Indian lands without Tribal authorization, breaching the Indian Gaming Regulatory Act (IGRA) of 1988. This federal law governs all forms of gaming on Indian lands and aims to protect tribal sovereignty and economic self-sufficiency.
As stated in the brief: “This state of affairs is unacceptable. It is an affront to tribal sovereignty, an end-run around Congress and the States, and a violation of basic notions of fair play and sound regulation.”
The argument posits that the introduction of the term “swaps” to the Commodity Exchange Act in 2010 did not negate the longstanding frameworks governing gaming law. There’s a crucial legal conflict stemming from differing rulings between the Ninth and Third Circuits, necessitating a Supreme Court resolution.
Impact on Tribal Sovereignty and Self-Sufficiency
This case poses a significant threat to Tribal self-governance and economic independence. Kalshi’s unauthorized sports-event contracts on Indian lands directly undermine tribal authority and violate the IGRA and existing tribal-state agreements. Moreover, the revenue that tribes generate from lawful gaming operations is vital for their communities, supporting essential services such as healthcare, education, and public safety.
The brief highlights that “every dollar illegally diverted to gaming on prediction markets is a dollar that no longer goes to jobs, housing, healthcare, education, public safety, and other critical government services for tribal citizens and their surrounding communities.” The ripple effects of illegal gaming are not limited to tribes; Indian gaming plays a crucial role in regional economies, providing jobs and economic opportunities.
The coalition calls on the Supreme Court to grant certiorari to restore the regulatory balance initially established by Congress, which has been disrupted by companies like Kalshi.
The Tribal Nations and organizations are being represented by the Native American Rights Fund (NARF), with legal assistance from Rachel Shalev, Eric Citron, and Edwina Clarke of Zimmer, Citron & Clarke LLP.
For further details, view the full amicus brief here.
For more updates, navigate to NARF Blog.
