Kalshi Blocks Prediction Markets on California Tribal Lands

After a federal appeals court ruled that Kalshi's sports contracts likely violate tribal gaming laws, Kalshi has blocked access to its prediction markets in three California tribal reservation areas. 

On Thursday, Kalshi attorney Grant Mainland said that the company put up a geofence around the three lands. Kalshi has been dealing with a lawsuit from California tribes. However, a lawyer for the tribe argues that the restrictions don't eliminate the harm their lawsuit describes. 

This is Kalshi's first-ever voluntary geofence around tribal lands.

Kalshi Geofences Three California Tribal Lands

The Blue Lake Rancheria, Chicken Ranch Rancheria, and Picayune Rancheria tribes filed a lawsuit earlier this year against both Kalshi and Robinhood. They alleged the sports contracts from the prediction market platforms counted as unauthorized gambling that's happening on tribal lands.

Then, in September, the Ninth Circuit ruled against Kalshi in the tribes' case.  

"Imagine a user standing on the floor of the Blue Lake Casino Hotel who downloads Kalshi and DraftKings, a classic online sports betting app. On Kalshi, she buys a $100 contract that pays if the San Francisco Giants win. On DraftKings, she wagers $100 on the same outcome. The bettor, the place, the stake, and the contingency remain the same. Only Kalshi’s vocabulary changes.

"Kalshi may reshuffle the cards, but it cannot change the hand: Its sports event contracts are class III gaming," the ruling said in part. 

Tribes Say Geofence Doesn't Eliminate Harm

From here, yes, Kalshi has put up the geofence, but the tribes are adamant that the harm has already been done and that it has interfered with their sovereignty. 

The Ninth Circuit also ruled against Kalshi in a case with Nevada in August. However, the Third Circuit ruled for Kalshi in its legal battle with New Jersey. Now, New Jersey hopes to take the issue to the Supreme Court for a final resolution.