Oklahoma Tribal Gaming Leaders Warn Prediction Markets Threaten Sovereignty

Prediction market platforms are a hotbed for federal and state-by-state issues, and the latest state to enter that conversation is Oklahoma. 

Now, Oklahoma tribal gaming leaders are saying that prediction markets represent a new threat that could get around federal laws about gambling in Indian Country. As a reminder, sports betting is also illegal in Oklahoma. 

Oklahoma Tribal Leaders Raise Concerns Over Prediction Markets

On August 27, during a meeting with the United Indian Nations of Oklahoma, Oklahoma Indian Gaming Association Chairman Matthew Morgan raised an issue. This meeting was attended by representatives from 20 tribes, according to kosu.org. 

“They look at tribes and tribal gaming and they think we’re standing in their way,” Morgan said. “And so they’ve decided to use their political muscle in order to try to shove us out of the way. They’re going to disregard precedent that has been set for decades on how these things are handled and just say, ‘We don’t need your permission.’”

Morgan was in favor and even backed legislation that would've authorized tribal sports betting in the state. However, in April, a bill to do just that failed with a 27-21 vote. 

As for prediction markets, Morgan said that Kalshi directly conflicts with the Indian Gaming Regulatory Act, a federal law from 1988 that governs gaming on tribal lands. 

Other tribes, such as those in California and New Mexico, have sued Kalshi.

“Enter this white-collar activity disguised or described as swaps or trading of financial instruments on sports, betting on sports activities, sports events, when in fact, it is gambling,” Indian Gaming Association Chairman David Bean added.

Tribal Leaders Oppose Expanded CFTC Authority

Oklahoma Attorney General Genter Drummond was part of a group of more than 40 other attorneys general who, in May, filed with the Commodity Futures Trading Commission that Kalshi was “unequivocally gambling.”

Additionally, tribal leaders oppose the CLARITY Act, legislation that could strengthen the CFTC's authority over prediction markets. The CLARITY Act passed in the House last year and is headed to the Senate.