Kalshi Judge Predicts Tribe Will Win Block on Sports Wagers

Native American Law Team Leader James Meggesto was quoted in a Bloomberg Law article addressing a recent federal court ruling in a case involving the Ho-Chunk Nation and prediction market platform Kalshi and the broader implications for Tribal sovereignty and regulatory frameworks in the gaming industry. At the heart of the case is whether sports-related event contracts are subject to state and Tribal gaming regulations such as the Indian Gaming Regulatory Act (IGRA) or fall instead within financial oversight under the Commodity Futures Trading Commission (CFTC) and federal Commodity Exchange Act. The latest development here is that a judge allowed the Ho-Chunk Nation's lawsuit against Kalshi accusing the company of violating the IGRA to move forward, concluding the Tribe showed "a likelihood of success" in its arguments. Although a notable win for Tribes in similar situations, Mr. Meggesto cautioned against putting too much stock into the decision, given other litigation is ongoing and these questions about the interactions among federal, state and Tribal regulatory authorities will likely land before the U.S. Supreme Court.

"Forty years later, it's been a win-win for Tribal and state interests," he said. "But it's pretty clear the Supreme Court's going to have a word on this and then it'll be left to Congress to react."

READ: Kalshi Judge Predicts Tribe Will Win Block on Sports Wagers (Subscription required)