Over in the Sunshine State, three native tribes are alleging in a new lawsuit that Kalshi and Robinhood’s products constitute illegal sports betting. Per a national gaming report, the Blue Lake Rencheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians are unhappy with the national companies’ presence. The groups have voiced their opposition to the encroachment of prediction markets, alleging that these products violate state laws. As a result, the three tribes launched a lawsuit against Kalshi and Robinhood, two of the leaders in this emerging space. Prediction markets offer yes-no contracts on a variety of events, including sports and politics, among others. Popularized by the latest U.S. election, these CFTC-regulated products have quickly gained traction, expanding across the U.S.
In this report, SBS will be going over the latest gaming updates coming from the Golden State, along with some additional notes and thoughts coming from the region and beyond.
Noted in the same article, competitors from the traditional betting industry, however, were not all too happy with the emerging vertical. Unlike sportsbooks, prediction markets are regulated by the CFTC and therefore can offer their products in all 50 states. Opponents have also asserted that this gives them an unfair advantage. In California, the report says, the three tribes behind the latest lawsuit alleged that Kalshi and Robinhood’s products constitute illegal sports betting.
Filed in the U.S. District Court for the Northern District of California, the lawsuit says that Kalshi and Robinhood’s products, which can be accessed by people on tribal land, have violated a variety of both federal and tribal regulations. This includes the Indian Gaming Regulatory Act (IGRA) and the California Constitution. The tribes also alleged that Kalshi and Robinhood’s products violate the gaming compacts between the three tribes and the government. Additionally, they argued that the two companies’ products hurt the local sports betting framework and the tribes that rely on the proceeds from sports betting. As a result, prediction markets also hurt the three nations’ tribal sovereignty, the complaint argues.
The lawsuit seeks preliminary and permanent injunctions against the two prediction market platforms. Additionally, a spokesman from this company had this to say, “Robinhood’s event contracts are regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity. Through this, the company allows retail customers to access prediction markets in a safe, compliant, and regulated manner. So far, two federal courts have made initial rulings that these CFTC’s rules preempt other laws, and we intend to defend ourselves against these claims,” the spokesperson said.
Despite the continued pressure from both commercial and tribal operators, prediction markets have continued to flourish. Per the same report, Kalshi, in particular, has faced lawsuits in multiple states but has so far refused to back down. Additionally, the company has previously said that it responds to the CFTC and not to state regulators and that it would make changes to its business model only if required by the CFTC.
In other gaming news, Indian casinos pushed back earlier this month on a California judge’s tentative ruling that dismissed their challenge to non-tribal cardrooms offering games like blackjack. Arguments over Sacramento County Superior Court Judge Lauri Damrell’s tentative ruling focused on her finding that the federal Indian Gaming Regulatory Act led to its dismissal. Tribal casinos say the ruling is flawed because the act regulates gaming on tribal lands, while their complaints target non-tribal cardrooms offering banked games like blackjack and baccarat, which tribes claim are their exclusive right. The cardrooms counter that tribes want both the ability to negotiate compacts under the federal act and to use them under state law. Additionally, cardrooms cannot sue tribal casinos over games on reservations because of their sovereignty status.
In both of these cases, it further illustrates the various challenges and hurdles that national gaming powers face when entering the Golden State. Indeed, national gaming companies need to understand the relationship and dynamic between them and also the native tribes in California. These companies will continue to face friction if they are not able to operate within the parameters there in the region that the tribal powers have put in place not only between themselves, but also with other gaming companies that have tried to enter before them. Indeed, with predictive markets becoming more of a hot-button issue and also more and more popular across the country, it will be interesting to see if all of these groups can co-exist in the Golden State.
Once you are all up to speed in relation to the latest gambling notes and articles coming from the Golden State, make sure to check out the excellent array of info at SBS. Of course, for even more insights on the topic covered here, the California sports betting guide is an excellent read on the latest gaming updates from the state. Conversely, for those interested in exploring a new gaming outlet, the BetOnline sportsbook review breakdown is a fantastic page that goes over all kinds of great info. This includes things like the latest notes from the site and also more thoughts regarding the outlet and beyond. Finally, the payment methods rundown is an excellent resource for qualified customers that goes over the variety of options available to you, from crypto to more traditional routes.
About the Author
Chris Boline is a Reno-based business development professional and freelance sports writer with over a decade of experience covering the NBA G League, Los Angeles Chargers, and national football and basketball. His expertise spans the NFL, NBA, UFC, boxing, golf, and motorsports, along with topical news, marketing, and promotional content. A proud University of Nevada graduate, Chris earned both his BS in Management & Economics (2015) and MBA (2023). He is active in the Reno community, serving on boards such as the Nevada Sagebrush Alumni Chapter, NCET, and the College of Business Alumni Association, where he was past president (2022–23). Notable honors include: - Two-time University of Nevada Alumni Chapter of the Year honoree (2017, 2021) - 2021 NCET Professional Services Organization of the Year (with TAC) - 2016–17 Reno Bighorns MVP, awarded by the Sacramento Kings - Nevada Press Association Award for Best Sports Column (2015) - Former Editor-in-Chief of The Nevada Sagebrush Chris blends his passion for sports with a strong background in sales, marketing, and community engagement.
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