UMVA has learned that Connecticut’s two federally recognized tribes, the Mohegan Tribe and the Mashantucket Pequot Tribal Nation, are stepping into a high‑stakes legal showdown over sports prediction markets that could rewrite the rules of gambling oversight and jeopardize a vital revenue stream for tribal communities.
In a bold move, the tribes filed a motion with the U.S. District Court, requesting to intervene as defendants in a lawsuit originally filed by the Department of Justice and the Commodity Futures Trading Commission against Connecticut regulators and state officials. The court conference is set for May 27th.
The heart of the dispute lies in Connecticut’s decision to ban companies such as Kalshi, Crypto.com and Robinhood Derivatives from offering sports‑event contracts, labeling them as unauthorized sports betting under state gaming laws. The tribes argue that these contracts mirror the traditional wagers already governed by tribal gaming agreements and Connecticut regulations.
“The Tribes’ right to regulate and operate gaming is not incidental; it is the product of federal law, sovereign government‑to‑government agreements, state law, and decades of investment designed to promote tribal self‑sufficiency and strong tribal governments,” the tribes wrote, emphasizing the depth of their legal and cultural stake in the matter.
They point out that firms offering prediction markets present wagers that are “indistinguishable” from sportsbook betting already operating legally in the state. Their filing compares tribal sportsbook apps with contracts offered on prediction market platforms, underscoring the similarity in substance and risk.
Connecticut’s sports betting industry, launched in 2021 through agreements that granted the tribes rights to online casino gaming and statewide online sports wagering, has already generated more than $7.4 billion in wagers and roughly $773 million in operator revenue. In 2025 alone, sports betting revenue reached $265.9 million, funding essential tribal services such as healthcare, education, housing and public safety.
The state, led by Governor Ned Lamont and lawmakers, has pushed for tighter restrictions on prediction markets, recently advancing legislation that clarifies sports‑event contracts fall under state gaming laws rather than commodities regulations.
As the legal battle draws national attention, several states are challenging prediction market operators while federal agencies maintain that federal law governs the contracts. Connecticut officials support the tribes’ request to join the case, whereas federal agencies oppose it.
The tribes’ proposed response rejects many federal claims and disputes the argument that sports‑event contracts qualify as swaps under commodities law, positioning themselves as the guardians of a fair and sovereign gaming landscape.
