Tribal Coalition Joins Legal Fight Against Kalshi in Maryland
A coalition of 27 federally recognized tribes and seven tribal associations is stepping into the legal fray between prediction exchange platform Kalshi and the state of Maryland by submitting an amicus brief. The tribes argue that Kalshi’s sports event contracts function as illegal sports wagers, echoing their intervention in a similar case in New Jersey.
This joint filing in Maryland’s U.S. District Court follows a previous brief from over 65 tribal groups supporting the state’s position. Prominent organizations involved include the Indian Gaming Association and the National Congress of American Indians.
The tribes contend that Kalshi’s contracts, allowing users to gamble on sports outcomes yet regulated as financial products by the Commodity Futures Trading Commission (CFTC), pose a significant threat to tribal gaming revenues and, consequently, their economic independence. These revenues are critical for funding vital government services within tribal communities.
A central issue in this legal battle questions whether the Commodity Exchange Act (CEA), which governs futures trading, supersedes the Indian Gaming Regulatory Act (IGRA), that specifically oversees tribal gaming. The tribes refute Kalshi’s assertion that the CEA preempts IGRA, highlighting the “special rule” allowing the CFTC to ban gaming-related markets and suggesting that Congress did not intend futures law to encompass gambling.
In response, Kalshi has filed a motion to dispute the tribes’ brief, claiming they lack a direct stake in the case and offering no new arguments. The Maryland lawsuit stems from the state’s cease-and-desist order, which Kalshi is attempting to block, citing previous judicial victories in Nevada and New Jersey. The case is currently before the U.S. Court of Appeals for the Third Circuit.
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