Four New Mexico tribal governments have filed a federal lawsuit against prediction-market platform Kalshi, accusing the company of operating illegal online sports betting within tribal lands in violation of federal and tribal gaming laws.

The lawsuit was jointly filed by the Mescalero Apache Tribe, the Pueblo of Isleta, the Pueblo of Pojoaque, and the Pueblo of Sandia. Tribal leaders argue that Kalshi’s online platform effectively allows sports wagering on tribal lands without authorization from tribal governments or compliance with tribal-state gaming compacts.

According to the tribes, Kalshi’s website and mobile app enable users to place wagers on sporting events through “prediction markets,” which the company categorizes as financial derivatives rather than traditional gambling. Tribal officials contend the distinction is misleading and that the activity falls under Class III gaming, which is heavily regulated under the Indian Gaming Regulatory Act (IGRA).

IGRA establishes the legal framework for gaming on tribal lands and grants tribes significant authority to regulate and operate gaming activities within their jurisdictions. Tribal leaders argue that Kalshi’s operations undermine those sovereign rights and bypass established regulatory agreements between tribes and the state of New Mexico.