Kalshi successfully fends off tribes lawsuits

Legal

Kalshi has successfully fended off a preliminary injunction sought by three California tribes that aimed to halt the company’s sports-event contracts on tribal lands, Bloomberg Law reported Wednesday.

The lawsuit was filed by the Blue Lake Rancheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians.

The tribes argued that Kalshi’s contracts constituted unlawful gaming under the Indian Gaming Regulatory Act, claiming that the company’s marketing statements misrepresented the legality of sports betting.

U.S. District Judge Jacqueline Scott Corley denied the tribes’ motion on Monday, ruling that they had not demonstrated a likelihood of success on the merits of their claims. The decision allows KalshiEX LLC, an affiliate of Kalshi , to continue offering and advertising sports-event contracts on tribal lands for the time being.

Kalshi is also facing legal pressure in New York, where state regulators issued a cease-and-desist order, arguing that its sports-event contracts constitute unlicensed gambling. In response, the company has recently file d a federal lawsuit seeking to block enforcement, claiming that its markets fall under federal CFTC oversight rather than state gambling law

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