A new round of tribal claims has been filed Kalshi Inc.The New York Prediction Market operator tries to submit contracts based on the results of professional sports. On August 20, the nation of Hawk Seonk in Wisconsin brought a case in the Federal Court, based on the arguments made by three tribes in California earlier this year.
the suitHe argues in the American boycott court in the Western Region in Wesconsen, that the sporting event contracts in Kalchi are not innovative financial products, but illegal bets that penetrate federal law, violating state constitutions, and undermining tribal sovereignty.
“By providing the sports bets on Indian lands in the country and presenting them to the general public of the public, the third -class sports betting game violates the integrated regulations, decree and play in the nation, and interferes directly with the nation’s sovereign right to the nation to regulate Indian lands.” -Ho-chunk Nation Vs Kalshi Inc et al
“While it is denied as new commodities and futures products, these events contracts are fundamentally more than illegal bets on the results of sporting events,” says the deposit file ..
Ho-Chunk Nation Files against Kalshi in Wisconsin
For Ho-Cink Nation, which runs casinos throughout the Wisconsin state under federal supervision, the lawsuit against Calchi revolves around maintaining control of games on tribal lands. The complaint emphasizes that the prediction market operations “interfere directly with the sovereign right of the nation and weakens it to organize games on its Indian lands.”
Tribal leaders warn that increasing unorganized mathematical contracts can eat in casino revenues that support the basic community services. The lawsuit states: “The loss of revenues has a direct impact on the functions of the tribal government and has a tangible impact on the services and programs provided by tribal governments to their members and all people who live and work and visit Indian lands in the country.”
California tribes are driving the road
The Ho-Cink Nation lawsuit comes after three tribes in California, including Rencon Squad from Loueseno IndiansHe went to the court this spring to prevent Kalshi from including similar contracts in its territory. Completely, these cases show a coordinated effort before Tribes to retreat against financial companies Moving to the profitable sportsmanship market.
Broked: Three Indian tribes in California, recognized in California, filed a lawsuit against Kalshi and Robinhood in the California Federal Court, claiming that the two companies illegally participated in sports betting by submitting juvenile contracts in the sports result on Indian lands to the tribes in violation of IGRA. pic.twitter.com/renw1xbtjz
Daniel and Brother (Wallachlegal) July 23, 2025
Like the lawsuits in California, the Wisconsin case argues that the contracts such as Shi violates the law regulating the Indian games, which gives tribes and states authority over the third category games, including sports betting, through the pressures of the tribal state.
Organizational mystery in CFTC
KALSHI said it is working legally a specific exchange before The Justice Contracts Trading Committee. The company’s executive officials argue that mathematical contracts should be dealt with as derivatives, not a gambling.
But CFTC itself has long realized the risk of this line. In 2011, the agency banned some events contracts that “include, related to it, or the reference … games.” In the legislative history mentioned by Ho-Cink’s complaint, Senate members explicitly warned of the treatment of sports bets as financial contracts that can be traded: “These types of contracts will not serve any real commercial purpose. Instead, they will only be used for gambling.”
Even with these restrictions in place, KALSHI advanced forward and new sporting products created in early 2025, where she collaborated with Robinhood to reinforce “Super Bowl Betting” and March Madness throughout the country. Advertising materials described the company as “the first legal sports betting platform in the country” and boasting that its markets were “legal in all fifty states.”
The nation calls Ho-Cink these allegations “wrong and misleading”, claiming a deliberate campaign to normalize unlicensed betting.
Kalshi has told the organizers and the courts that its markets are legitimate occurrence contracts governed by the Law of Exchange of Commodities. But the nation of Ho-Cink indicates a long-term federal ban, noting that CFTC has prevented contracts that “include or related to terrorism or referring to assassination, war, games or illegal activity under any federal law or law.”
Readwrite has communicated with Kalshi to comment.
Distinguished Image: Canva / Kalshi
Pamphlet Ho-Cink Nation joins tribal lawsuits that challenge Kalshi sports contracts First appear on reading.
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