A small tribe in Oklahoma, the Alabama-Quassarte Tribal Town, is taking legal action against Kalshi, one of the largest prediction market companies in the U.S.

They aim to invalidate a business agreement that they assert was not properly authorized by their governing committee. The tribe, along with Samuel Marshall Jr., who claims his rightful position as chief of the approximately 400-member group, has filed a lawsuit against Kalshi and its executives, including CEO Tarek Mansour, Wilson Yargee, and Michael Stopp.

This legal move seeks to block an agreement that would allow the development of a prediction market application called PokkeTrades, which lets users place bets on various events ranging from sports outcomes to political elections and even weather predictions.

In their lawsuit filed in the Muscogee (Creek) Nation District Court, the tribe is asking a judge to rule that the Alabama-Quassarte Tribal Town is not bound by the PokkeTrades agreement and that Yargee, who asserts himself as the legitimate chief, lacks the authority to endorse the deal. The lawsuit details that Yargee and Stopp acted without the authorization of the tribe’s governing committee when they entered into the agreement with Kalshi.

Furthermore, it asserts that Marshall is the legitimate chief, highlighting that Yargee was removed from his position in 2021 and has been misrepresenting himself ever since. The tribe, located about 90 miles southeast of Oklahoma City in Wetumka, contends that Yargee’s actions have disrupted not only their operations but have also created lasting confusion regarding their leadership.

The allegation continues that the governing body of the tribe never ratified the agreement Yargee entered into, thus rendering it invalid. The consequences of Yargee’s agreement with Kalshi have compelled Marshall and other town officials to expend time and resources to set the record straight, disrupting important business relationships and harming the tribe’s commercial reputation. In the face of these challenges, the tribe is seeking a temporary restraining order, damages, and rectification of Yargee’s claims, among other solicitations.