
"The Mescalero Apache Tribe, Pueblo of Isleta, Pueblo of Pojoaque, and Pueblo of Sandia filed the lawsuit Tuesday (May 12) in federal court in New Mexico. The 33-page complaint, reviewed by ReadWrite, seeks court orders blocking Kalshi from offering sports event contracts on tribal lands, while three of the tribes are also pursuing civil penalties."
"Tribal regulators say Kalshi's mobile app lets users place wagers on sporting events through yes-or-no contracts that operate like standard sportsbook bets. The tribes argue the products qualify as Class III gaming under the Indian Gaming Regulatory Act, known as IGRA, and therefore require tribal authorization and compliance with existing tribal-state gaming compacts."
"The document cites a 2016 Interior Department letter stating that "non-tribal Internet gaming" would conflict with the exclusivity promised to tribes under those compacts. The complaint says Kalshi never obtained tribal licenses and allows wagering by users as young as 18, even though tribal gaming agreements in New Mexico prohibit Class III gaming for anyone under 21."
"The filing describes Kalshi's offerings as nearly indistinguishable from traditional sportsbooks, pointing to bets involving game winners, point spreads, totals, parlays, and proposition wagers. One example cited in the complaint involved contracts tied to a University of New Mexico Lobos versus New Mexico State Aggies game. "Bookmakers have been providing the same service as Kalshi since at least the late 1700s," the complaint states."
Four New Mexico tribes filed a federal lawsuit against Kalshi seeking orders to stop sports event contracts on tribal lands and, for three tribes, civil penalties. Tribal regulators contend Kalshi’s mobile app enables wagers through yes-or-no contracts that function like sportsbook bets. The tribes argue the offerings are Class III gaming under IGRA and require tribal authorization and compliance with tribal-state gaming compacts. The complaint cites a 2016 Interior Department letter warning that non-tribal internet gaming would conflict with compact exclusivity. It alleges Kalshi lacked tribal licenses and permits users as young as 18, despite tribal agreements prohibiting Class III gaming under 21. The complaint describes Kalshi’s products as nearly indistinguishable from traditional sportsbooks, including bets on game winners, spreads, totals, parlays, and proposition wagers.
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