Ho-Chunk Nation is seeking permission to amend its federal lawsuit against Kalshi after part of the original case was dismissed. The revised complaint shifts away from a broad challenge to sports wagering and toward a narrower dispute over tribal gaming law and advertising claims. The tribe argues that the Indian Gaming Regulatory Act provides clear legal authority showing Kalshi falsely promotes nationwide legal sports betting. It contends that class III gaming, including sports betting, is lawful only on tribal lands when authorized by tribal ordinance, permitted by state law, and governed through a tribal-state compact. The tribe also claims Kalshi previously challenged this interpretation and lost in earlier proceedings.
"The Ho-Chunk Nation is reworking its federal lawsuit against prediction market company Kalshi, shifting the case away from a general attack on sports wagering and toward a more focused dispute over tribal gaming law and advertising claims. In a filing submitted May 22 in the U.S. District Court for the Western District of Wisconsin and seen by ReadWrite, the tribe asked a judge for permission to amend its complaint after part of the original case was dismissed earlier this month."
"The revised complaint centers on the Indian Gaming Regulatory Act, or IGRA, which the tribe says provides clear legal authority showing Kalshi falsely promotes nationwide legal sports betting. The case has become one of several major legal fights surrounding prediction markets and sports-related event contracts. Kalshi has argued its products are regulated under federal commodities law through the Commodity Futures Trading Commission, while tribes and state regulators contend the offerings closely resemble sports gambling."
"Earlier this month, the court dismissed the Ho-Chunk Nation's original Lanham Act claim, ruling the tribe had not identified sufficiently definitive legal guidance proving Kalshi's statements about legality were false. The judge noted courts around the country have issued conflicting decisions involving prediction markets and state gambling restrictions."
"The tribe now argues IGRA resolves that uncertainty. According to the proposed amended complaint, class III gaming, including sports betting, is only lawful on tribal lands when it is authorized by tribal ordinance, conducted in a state permitting that activity, and governed through a tribal-state compact. The filing says Kalshi already unsuccessfully challenged that interpretation during earlier proceedings."
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