Multiple California Tribes sue Kalshi, Robinhood for operating on Tribal land
The plaintiffs filed a 71-page complaint in US District Court for the Northern District of California on July 22, seeking a preliminary and permanent injunction against the two operators.
Key Points
- The Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians and Picayune Rancheria of Chukchansi Indians believe Kalshi and Robinhood violated IGRA by operating within its communities
- Similar to fellow lawsuits filed against Kalshi in 2025, the three Tribes state the operator’s sports event contracts “mimic” traditional sports betting
The Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians and Picayune Rancheria of Chukchansi Indians have filed a lawsuit within the US District Court for the Northern District of California against Kalshi and Robinhood for allegedly operating illegal sports betting on Tribal lands.
Each of the Tribes believe Kalshi and Robinhood are in violation of the Indian Gaming Regulatory Act (IGRA), which governs all Class III gaming within Tribal communities and requires authorization through a federally approved compact between the Tribes and the state.
Under California law currently in place, sports betting is seen as a Class III category of gaming, which Tribes are not authorized to offer according to existing compacts. The plaintiffs filed a 71-page complaint on July 22, seeking a preliminary and permanent injunction against the two operators.
“Kalshi is engaging in sport gambling as defined by the IGRA and the Tribes’ Compacts, Procedures and Ordinances. Therefore, the Tribes seek an order from the Court enjoining Kalshi from conducting its illegal sports gambling operation,” the Tribes said.
“No Indian tribe in California, including the Plaintiff Tribes, offer sports betting on their Indian lands, and betting on the outcome of sporting events would constitute a violation of the Tribes’ Compacts and Procedures.”
Similar to fellow lawsuits filed against Kalshi in 2025, the three Tribes state the operator’s sports event contracts “mimic” traditional sports betting and “undermine” the regulated gambling market.
Good to know: Following an amicus brief filed by Tribal organizations to oppose Kalshi’s preliminary injunction order against the Maryland Lottery and Gaming Control Commission on June 17, the operator urged the federal court to reject the brief just one week later
A Robinhood spokesperson reached out to Gaming America regarding the legal disputes, having said, “Robinhood’s event contracts are regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant and regulated manner.
“So far, two federal courts have made initial rulings that the CFTC’s rules preempt other laws and we intend to defend ourselves against these claims.”
The plaintiffs also brought forth claims against Kalshi and Robinhood under the Racketeer Influenced and Corrupt Organizations Act (RICO), alleging both operators have engaged in a “pattern of racketeering activity.”
These allegations include a “systematic misrepresentation” of unlawful gaming contracts offered by Kalshi as legitimate commodities traded under the Commodity Futures Trading Commission (CFTC)’s jurisdiction.
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