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New Mexico Tribes Sue Kalshi Over ‘Sports Betting’ on Tribal Lands
Posted on: May 13, 2026, 07:36h.
Last updated on: May 14, 2026, 09:15h.
- New Mexico tribes accuse Kalshi of illegal sports betting operations
- Lawsuit claims prediction markets violate tribal gaming laws and sovereignty
- Case could reshape regulation of sports prediction markets nationwide
Four New Mexico tribes sued Kalshi on Monday (May 11), alleging the federally regulated prediction market is illegally offering sports betting on tribal lands in violation of the federal Indian Gaming Regulatory Act (IGRA).
In a 34-page complaint filed in the federal court in New Mexico, the Mescalero Apache Tribe, Pueblo of Isleta, Pueblo of Pojoaque and Pueblo of Sandia argue that Kalshi’s sports-event contracts are functionally indistinguishable from sports wagering and therefore subject to tribal gaming laws and compacts.
Kalshi is overseen by the federal Commodity Futures Trading Commission, which has allowed the company to self-certify certain event contracts.
Exclusive Authority
The tribes, all casino operators, contend that IGRA gives them exclusive authority to regulate Class III gaming on tribal lands and that federally approved gaming compacts prohibit unauthorized internet gambling operations.
They also allege Kalshi permits users as young as 18 to place sports wagers, while tribal gaming operations require patrons to be at least 21.
The tribes are asking for an injunction barring Kalshi from operating sports betting on their lands, as well as a declaration that the company’s conduct violates IGRA and tribal law. The lawsuit seeks civil penalties and punitive damages for willful violations.
It’s the latest challenge to Kalshi’s sports-event markets, which have sparked disputes nationwide over whether prediction contracts are federally regulated financial products or unlawful sports betting subject to state and tribal gaming laws.
Kalshi ‘Admits’ Sports Betting
The complaint cites provisions added to federal commodities law under the Dodd-Frank Act following the 2008 financial crisis. Those rules prohibit contracts involving “gaming” or activities deemed contrary to the public interest from being listed on regulated exchanges.
Yet Kalshi has advertised itself as the “first app for legal sports betting in all 50 states.” The company has also admitted to the U.S. Patent and Trademark Office that it operates “[b]ookmaking services, namely, providing of information related to sports betting; organizing, arranging, conducting sports betting and gambling tournaments, competitions and contests,” the complaint states.
Kalshi has rapidly expanded since launching sports-event contracts in early 2025. The company’s daily trading volume has surged from roughly $4 million in late 2024 to nearly $800 million per day, with sports-related contracts accounting for most of that growth.
The company’s lawyers are yet to file a response to the lawsuit.
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