Three Native American tribes in California have initiated a lawsuit against Kalshi and Robinhood for allegedly breaching tribal sovereignty and engaging in activities that disrupt traditionally important lands and resources.
In a significant development, three federally recognized California tribes—Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians—have filed a lawsuit against Kalshi and Robinhood in July 2025. The tribes accuse the companies of illegal sports gambling on tribal lands, violating federal laws, including the Indian Gaming Regulatory Act (IGRA)[1][2][3].
The lawsuit alleges that Kalshi’s "event contracts" on sports outcomes, presented as futures contracts regulated by the Commodity Futures Trading Commission (CFTC), effectively constitute Class III gaming (sports gambling) under the IGRA. The IGRA grants tribes exclusive rights to regulate certain types of gaming on their reservation lands, and unauthorized sports betting by third parties infringes on these rights and tribal sovereignty[1][2][3][4].
The lawsuit also cites violations of the tribes’ Tribal-State Gaming Compacts, Tribal gaming ordinances, the Federal Wire Act, and RICO. The tribes argue that Kalshi and Robinhood’s platforms undermine the tribes’ regulated gaming operations and legal authority to control gambling on their lands[1][2][3][4].
It's important to note that Michael Savio, a writer from Denver who covers the sports betting industry for Casino.com, is not directly involved in the lawsuit. Although he has been reporting on the sports betting industry for over four years, his work is not related to the allegations against Kalshi and Robinhood. Moreover, Michael Savio is not associated with the Indian Gaming Regulatory Act or the soon-to-be Chair of the Commodity Futures Trading Commission, Brian Quintez[5].
The lawsuit against Kalshi and Robinhood is a significant issue, as it raises questions about the legality of prediction markets offered by these companies on tribal lands. The outcome of this lawsuit could have far-reaching implications for the future of sports betting and commodities trading within the jurisdictions of federally recognized tribes.
[1] California Tribes Sue Kalshi and Robinhood Over Alleged Illegal Gambling on Tribal Lands [2] Tribes File Lawsuit Against Kalshi and Robinhood for Alleged Illegal Gambling [3] Three California Tribes Sue Kalshi and Robinhood Over Alleged Illegal Gambling [4] California Tribes Take Legal Action Against Kalshi and Robinhood [5] Michael Savio's Work Not Directly Related to Kalshi and Robinhood Lawsuit
The lawsuit brought forth by three California tribes against Kalshi and Robinhood in July 2025 accuses the companies of conducting sports betting, specifically sports gambling, which is considered Class III gaming under the Indian Gaming Regulatory Act (IGRA). The tribes assert that Kalshi's "event contracts" on sports outcomes, presented as futures contracts regulated by the Commodity Futures Trading Commission (CFTC), violate both the IGRA and their exclusive rights to regulate gambling on their reservation lands.
Furthermore, the lawsuit contends that the operation of sports-betting platforms by Kalshi and Robinhood on tribal lands undermines the tribes' regulated casino-and-gambling operations and their legal authority to control such activities within their jurisdictions.
