The Blue Lake Rancheria Tribes in California have secured the first-ever preliminary injunction against Kalshi by a Tribal organization, potentially opening the door for fellow reservations to file enforcement action against prediction markets.
As a result of the preliminary injunction, Kalshi will be prohibited from offering sports event contracts on each of the Tribe’s respective Indian grounds. Contracts include those tied to football, basketball, baseball, soccer, tennis, golf, boxing, esports and numerous others.
By November 13, Blue Lake Rancheria Tribes will provide Kalshi with maps detailing the boundaries for each of their reservations. Within 21 days, the operator must then submit a status report detailing the steps it has taken to comply with the injunction.
On September 16, The US Court of Appeals for the Ninth Circuit ruled in favor of the Blue Lake Rancheria Tribes, determining sports event contracts are class III gaming under the Indian Gaming Regulatory Act (IGRA) and not protected by the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).
Despite the Tribe’s previous motion for a preliminary injunction being denied by a District Court in California, Blue Lake Rancheria was then able to cite the Ninth Circuit’s decision in additional enforcement action against the operator.
Given the legal standing Blue Lake Rancheria has now forged in California, additional Tribes across the US could follow in their footsteps to restrict prediction market activity on their Native lands.
Recently, Arkansas Attorney General Tim Griffin filed a lawsuit against Kalshi in Independence County Circuit Court, describing the operator as “a pocket-sized bookie” within the enforcement action.
Griffin is seeking restitution, injunctive relief, actual and compensatory damages and civil penalties as part of the lawsuit, having also alleged that Kalshi misrepresented the legality and safety of its products and engaged in unconscionable conduct.
The Alabama-Quassarte Tribal Town of Oklahoma denied entering into a partnership with Kalshi to develop a prediction markets app, confirmed by IGA Conference Chair Victor Rocha on October 13
