US tribal leaders remain strongly opposed to Kalshi’s sports prediction markets, refuting the platform’s assertions that it maintains constructive dialogue with tribal nations. They decried Kalshi’s attempts at communication as dismissive and disingenuous, remaining adamant that Kalshi’s offerings represent illegal gaming that threatens regulated operators and erodes tribal gaming rights.
The Rift Between Kalshi and the Tribes Grows Wider
Victor Rocha, conference chair of the Indian Gaming Association and member of the Pechanga Band of Indians, commented on the growing rift between Kalshi and tribal nations in a recent interview with Sportico. Rocha remained skeptical regarding Kalchi co-founder and CEO Tarek Mansour’s sincerity, describing a recent conference call where Mansour attempted to placate tribal leaders without addressing the underlying issues.
I’ve talked to Tarek Mansour twice now, and my take from him is that he’s a lying little twerp.
Victor Rocha, Indian Gaming Association conference chair
A recent written statement from Kalshi maintained that the company remains open to future collaboration with tribal communities, envisioning potential partnerships. The company noted that the Commodity Exchange Act does not prohibit tribes from continuing their gambling operations on Tribal Sovereign lands, implying that prediction markets and traditional sports wagering can coexist.
According to Rocha, the lack of concrete measures by Kalshi to address tribal concerns left legal action as one of the few remaining options. California Nations Indian Gaming Association chairman James Siva supported this view, describing the issue as a fundamental challenge to tribal authority that could potentially deprive communities of vital revenue streams.
Kalshi Faces Rising Criticism
The ongoing disputes revolve primarily around Kalshi’s sports prediction product. It allows users to wager on sporting event outcomes in the form of event-based contracts regulated by the Commodity Futures Trading Commission (CFTC). While Kalshi remains adamant that these constitute financial instruments governed under commodities law, tribes argue that such offerings are merely thinly veiled sports wagering.
This is illegal gaming. This is both an infringement on tribal gaming exclusivity in various states as well as an undermining of overall tribal sovereignty.
James Siva, California Nations Indian Gaming Association Chairman
Several other parties have also criticized Kalshi’s business model. The American Gaming Association, 34 state attorneys general, and a growing list of tribal and public interest organizations have filed amicus briefs opposing the company’s legal stance. This particular case revolves around Kalshi’s lawsuit aiming to block New Jersey from enforcing a cease-and-desist letter directed at its sports-related event contracts.
While Kalshi continues its attempts to reach a compromise, its assertions seem to be falling on deaf ears. Tribes remain wary that the company’s actions completely sidestep the Indian Gaming Regulatory Act (IGRA), which sets strict boundaries around gaming operations and defines tribal-state compacts. Tribal governments fear that any loss of revenue due to perceived unfair competition could erode tribal gaming rights and threaten communities.