Wisconsin Tribe Expands Lawsuit Against Kalshi Over Sovereignty Claims

The Ho-Chunk Nation, based in Wisconsin, has escalated its legal conflict against Kalshi, a sports prediction market platform, and its partner Robinhood. The tribe seeks a federal injunction to stop the companies from operating on its sovereign lands, contending that their operations infringe on tribal gaming sovereignty.

Allegations of False Advertising

The lawsuit filed by the Ho-Chunk Nation claims that Kalshi’s assertion of being “50 State Legal” is misleading when it comes to operations on tribal lands. The tribe argues that according to the Indian Gaming Regulatory Act (IGRA), only tribes with a Class III gaming compact have the authority to conduct gaming on such lands. In their view, Kalshi’s sports prediction markets fall under this category of gaming. According to the tribe, Kalshi’s marketing claims are false and violate long-established norms under IGRA, which has been supported by the Supreme Court over the decades. The tribe, which operates six casinos under its compact with Wisconsin, insists that these actions confuse consumers and undermine tribal sovereignty in gaming operations.

Federal Court Developments

The Ho-Chunk Nation initially filed the lawsuit in August 2025. A federal judge recently acknowledged the tribe’s complaint had enough merit to move forward, although claims involving the Lanham and Racketeer Influenced and Corrupt Organizations Acts were dismissed. The tribe is determined to address these federal law considerations once more. The stakes are high for the Ho-Chunk Nation, as IGRA specifically allows Class III tribal gaming only. The complaint claims that Kalshi uses terms like “Sports Betting” to appeal to users but argues it mislabels its market-driven platform under the Commodity Exchange Act. This rephrasing is intended, the tribe alleges, to sidestep regulatory scrutiny.

Broad Tribal Support

The lawsuit has garnered support from various influential Native American organizations, including the Indian Gaming Association and several state-level Indian Gaming Associations. Sixteen federally recognized tribes have also expressed their backing. These supporters argue that a legal victory for Kalshi could set a precedent, potentially threatening the ability of tribes across the U.S. to enforce their gaming laws. They emphasize the necessity of preserving IGRA’s framework, which offers essential protections for tribal gaming rights. Kalshi, along with Robinhood, maintains its stance that their prediction markets comply with federal regulations and dismisses the applicability of tribal gaming laws to their operations.

What’s Next?

The legal battle intensifies as the Ho-Chunk Nation and its allies prepare for further court proceedings. A ruling on the revised complaint is anticipated later this year, which could have major implications for both parties and the future enforcement of tribal gaming regulations.