Kalshi Pushes to Dismiss Ho-Chunk Sports Betting Lawsuit

Kalshi has asked a federal judge in Wisconsin to throw out the lawsuit brought by the Ho-Chunk Nation, claiming that the tribe is looking to label its sports event contracts as sports betting, despite federal law treating them differently.

Crossing the Line?

In a brief filed at the start of the week, the prediction market argued that trades made on a federally regulated designated contract market are exempt from tribal gaming rules, even when accessed on tribal land. 

The company is, therefore, fighting claims that, together with its partner Robinhood, it is violating the Indian Gaming Regulatory Act (IGRA), by offering sports-related contracts to users in Wisconsin.

The Ho-Chunk Nation sued both companies last August in the US District Court for the Western District of Wisconsin. The tribe argues that its compact with the state gives it exclusive rights to Class III gambling on its land and that Kalshi’s products cross that line. 

Endless Court Motions 

Since then, the case has been suffocated by a number of motions, with Kalshi and Robinhood moving to dismiss, followed by the tribe’s decision to seek a temporary restraining order to block operations. 

Next, Kalshi asked for expedited discovery, which triggered 16 tribes to file an amicus brief to back the request for a restraining order.

Judge Anita Marie Boor has not yet decided on the restraining order matter. Last month, the judge denied Kalshi’s request for faster discovery and set a trial date for May 24, 2027. 

Prior to that date, the two parties will exchange filings, disclosures, and settlement letters and attend at least two pretrial conferences.

At the center of the dispute is which federal law controls. According to the Ho-Chunk Nation,  IGRA and its compact are responsible for ruling over what happens on tribal land. 

Kalshi, on the other hand, counters that its contracts are derivatives regulated solely by the Commodity Futures Trading Commission under the Commodity Exchange Act. Because of that, it argues, the tribal compact does not apply.

Kalshi points to a similar fight in California, where a federal judge denied tribes a temporary restraining order last fall. In that case, Judge Jacqueline Scott Corley wrote, “The Court does not take lightly Plaintiffs’ concerns about the effects Kalshi’s activities might have on tribal sovereignty and the Tribes’ finances.” 

She added that Kalshi “may have found a way around prohibitions on interstate gambling that were created with the Tribes’ best interest in mind.” That decision is now on appeal.

Recycling Past Arguments

In its Wisconsin filing, Kalshi says the Ho-Chunk Nation is making use of arguments that have already failed in the past. 

The company also challenges the tribe’s racketeering and false advertising claims. Kalshi says the Ho-Chunk Nation cannot show real harm because it does not currently offer sports betting. 

“Plaintiff cites no factual allegations supporting its claimed injury other than those concerning its ‘exclusive market’ and ‘legal monopoly,’” Kalshi wrote, adding that this is not the kind of concrete injury courts require.