Native American Tribes Claim Kalshi Prediction Markets 'Siphon' Money From Casinos
Connecticut Indian tribes allege that prediction market operator Kalshi diverts gambling revenue from tribal casinos by offering unlicensed online event contracts. After state regulators ordered Kalshi, Robinhood, and Crypto.com to stop providing "sports event contracts" to Connecticut residents, Kalshi sued the Connecticut Department of Consumer Protection in December 2025, claiming threats of legal penalties. In support of state regulators, the Indian Gaming Association and 16 federally recognized tribes argued in an amicus brief that Kalshi is encroaching on tribal gaming rights in violation of the Indian Gaming Regulatory Act. Similar arguments appear in a California lawsuit by several tribes against Kalshi. Prediction markets like Kalshi and Polymarket have rapidly expanded, reaching billions in notional trading volume and company valuations in 2025, raising concerns among tribal and state stakeholders about unauthorized gambling operations on tribal lands.
