Ho-Chunk Nation files lawsuit against Kalshi
The Nation claims Kalshi is engaging in illegal sports wagering on Tribal lands.
Key Points
- Kalshi has come under legal fire several times in recent months and has received cease-and-desist letters from multiple state regulators
- The company says it offers users a trading platform for real-world events, and its website has nothing to do with gambling
The Ho-Chunk Nation has recently sued prediction market provider Kalshi, alleging the company has “engaged in illegal sports gambling on tribal lands,” according to a Courthouse News Service local report.
The Nation further claims it has been “irreparably injured by Kalshi’s business and requests damages, including disgorgement of ill-gotten gains, lost profits, costs and attorney fees,” the local report said.
The basis of Ho-Chunk’s lawsuit alleges Kalshi and Robinhood’s activities qualify as illegal sports betting on Indian lands because its patrons can choose “yes” or “no” to sporting event outcomes. The complaint raises concerns that people have access to the site and can use its services both on and off Tribal lands.
Gaming on Ho-Chunk lands is regulated by Congress’ Indian Gaming Regulatory Act. According to the National Indian Gaming Commission, this act “creates a statutory framework for the operation of gaming by Native American Tribes so that they may be the primary beneficiary of gaming operations and that gaming is conducted fairly and honestly.”
However, Kalshi has maintained its website does not have anything to do with gambling but serves as an internet platform for its users to “trade on the outcome of real-world events.”
Good to know: This is the latest in a series of legal suits involving the prediction market company
Cease-and-desist orders were sent to Kalshi in both Maryland and New Jersey, resulting in Kalshi filing a temporary restraining order and preliminary injunction against the Maryland Lottery and Gaming Control Commission (MLGCC).
The company also recently sued the Nevada Gaming Control Board, the Nevada Gaming Commission, “their members in their official capacities” and Nevada Attorney General Aarron Ford.
Although Kalshi won its suit in Nevada, a federal judge has denied an injunction and a temporary restraining order in Kalshi’s Maryland lawsuit.
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