COURTS
Tribes urge judge to immediately ban Kalshi operations on tribal lands
New Mexico tribes suing to bar sports-betting app on tribal lands
Three New Mexico pueblos and the Mescalero Apache Tribe are asking a federal judge to issue a preliminary injunction that would bar the New York-based prediction market firm Kalshi from offering sports betting on tribal lands.
The tribes filed a motion Friday arguing that Kalshi offers "unlawful online sports betting" in violation of state and federal law and asking the judge to immediately halt the practice on tribal lands.
The motion was filed in response to a request by Kalshi asking the judge to dismiss the request for a preliminary injunction, arguing that the action would be unworkable for a nationwide exchange that operates under federal laws and regulations.
U.S. District Judge Margaret Strickland has scheduled a hearing for Sept. 23 in U.S. District Court in Las Cruces to consider the competing requests.
"If the court were to permit (the New Mexico tribes) to exercise regulatory authority over Kalshi, hundreds of other tribes could too," Kalshi鈥檚 attorneys argued in a June 24 motion. "Such piecemeal regulation would be intolerable for an exchange that operates throughout the 近距离内射合集 States under the oversight of a federal regulator."
Kalshi is a contract market regulated by the Commodity Futures Trading Commission. Prediction markets have surged in popularity in recent years, with sites like Polymarket and Kalshi drawing millions of users wagering on everything from elections to sporting events.
The tribes are asking the judge to order Kalshi to use a technique called geofencing to block the use of the company's app on tribal lands.
The Mescalero Apache Tribe and the Sandia, Isleta and Pojoaque pueblos filed the federal lawsuit in May arguing that Kalshi's app allows anyone 18 and older to bet on sporting contests in violation of the Indian Gaming Regulatory Act and state-tribal compacts.
In June, New Mexico Attorney General Ra煤l Torrez filed a separate lawsuit against Kalshi, alleging the company's sports-betting app functions as a sportsbook in violation of state gambling laws.
Both suits are part of a nationwide legal battle between sports-wagering platforms and states and tribes over control of gambling within their jurisdictions.
Kalshi contends that its sports-betting contracts are futures trading contracts regulated under the federal Commodity Exchange Act, which preempts the Indian Gaming Regulatory Act and state gambling laws.
The tribes' suit also contends that the app allows people under the age of 21 to bet on games in violation of state and federal law.
"In particular, an injunction here would serve compelling government interests in public health by enforcing tribal laws on sports gambling," particularly for underage users, the tribes' motion argues.
Olivier Uyttebrouck covers the courts and legal affairs. You can reach him at olivier@abqjournal.com.