Kalshi sports contracts under scrutiny
Are sports bets legal on tribal lands?
1Kalshi sports contracts questioned
The Ninth Circuit Court of Appeals examined whether Kalshi Inc. and Robinhood Markets can continue offering sports event contracts on tribal lands. This follows the denial of a preliminary injunction request in the ongoing appeal case.
2Legal status on tribal lands
Attorney Lester Marston argued that Kalshi's sports contracts become Class III gaming under the Indian Gaming Regulatory Act when conducted on tribal lands, thus violating federal law.
3Similarity to sports betting
The court noted little practical difference between Kalshi's products and traditional sportsbooks. Kalshi's counsel maintained that contracts operate under a different legal regime than sports betting.
4Tribal gaming protections
Marston argued that tribal gaming ordinances, tribal-state compacts, and the Indian Gaming Regulatory Act function as a single regulatory system, challenging Kalshi's reliance on federal commodities regulation.
5Kalshi's defense
Kalshi attorney Grant Mainland urged the court to decide the appeal on narrower grounds, stating that the tribes cannot sue under the provision they cited as no language in any compact was violated.
6Decision pending
The court took the case under submission without issuing a ruling. This decision could determine the legal status of sports contracts on tribal lands and impact the financial services sector significantly.
Original article: ReadWrite — Kalshi spor sözleşmeleri tartışılıyor