Three California tribes sued Kalshi and Robinhood Tuesday, calling for the prediction market’s sports event contracts to be blocked on tribal land. It is the first federal lawsuit filed against, rather than by, Kalshi.
The Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians filed the lawsuit in the U.S. District Court for the Northern District of California, asking for an injunction to block Kalshi from offering what they call “illegal sports betting” on their reservations.
The case concerns Kalshi’s sports event contracts, which are regulated by the Commodity Futures Trading Commission (CFTC) as “swaps.” This type of financial product allows users to wager money on a sporting outcome. Kalshi’s sports event contracts are also available on stock trading platform Robinhood.
