Kalshi revived an old-school argument that was popular with offshore gaming sites in the 1990s and early 2000s, as the prediction market argued that accepting bets from a specific jurisdiction doesn’t mean it does business there, and cited a carve-out within the Unlawful Internet Gambling Enforcement Act (UIGEA).
However, it’s not clear that the UIGEA exception it cites is actually relevant when it comes to determining where Kalshi does business.
The prediction market filed a response motion Thursday in the U.S. District Court for the District of California, after three of the state’s tribes — The Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians — sued the prediction market, as well as its partner Robinhood, in July.
