Wisconsin ruling keeps Kalshi Ho-Chunk tribal betting case
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Wisconsin ruling keeps Kalshi Ho-Chunk tribal betting case
"U.S. District Judge William Conley said the lawsuit “principally concerns the ability of plaintiff Ho-Chunk Nation, a federally-recognized Indian tribe, to prohibit online sports betting from occurring on its tribal land.” The ruling kept the tribe’s central claims alive after a key dismissal challenge. The judge’s framing focused on whether the tribe can stop online betting tied to its land, rather than on broader regulatory questions about the market’s structure."
"The Ho-Chunk Nation argued that the contracts qualify as class III gaming under the Indian Gaming Regulatory Act because bettors located on tribal land can still access the platform without tribal approval. The tribe said that activity threatens its gaming compact and cuts into casino revenue that supports tribal government operations. Conley agreed the tribe had plausibly stated a claim under IGRA, finding the allegations sufficient at this stage."
"Conley agreed the tribe had plausibly stated a claim under IGRA. The opinion said Kalshi “does not appear to dispute” that its sports event contracts fit within class III gaming rules or that tribal users can access the offerings online. The ruling therefore rejected Kalshi’s attempt to end the case early, at least on the core theory that the contracts function as class III gaming accessible from tribal land."
"The ruling also referenced a recent Arizona decision involving Kalshi. In it, another federal judge described the contracts as “sports wagers and everyone who sees them knows it,” while noting Kalshi markets itself as a “sports betting platform.” That comparison supported the view that the contracts operate as sports betting in practice, even though Kalshi’s platform is regulated through the Commodity Futures Trading Commission."
A federal judge in Wisconsin allowed the Ho-Chunk Nation to continue pursuing central claims against Kalshi regarding online sports event contracts. The ruling stated the case principally concerns the tribe’s ability to prohibit online sports betting from occurring on tribal land. The dispute centers on Kalshi’s event contracts that let users trade on sports outcomes and other real-world events through a market regulated by the Commodity Futures Trading Commission, with some contracts distributed via Robinhood. The Ho-Chunk Nation argued the contracts qualify as class III gaming under IGRA because bettors located on tribal land can access the platform without tribal approval. The judge found the tribe plausibly stated an IGRA claim and noted Kalshi did not appear to dispute that the contracts fit class III gaming rules or that tribal users can access them online.
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