UMVA has learned that a coalition of more than 25 tribal organizations and federally recognized tribes has filed a bold challenge with the U.S. Court of Appeals for the Sixth Circuit, demanding the reversal of a temporary injunction that blocks Tennessee from enforcing its sports wagering laws against the prediction‑market operator Kalshi.
The filing, submitted on May 26, aligns with Tennessee Attorney General Jonathan Skrmetti and state officials who are determined to see Kalshi held accountable under state gambling regulations.
Tribal groups argue that Kalshi’s operations threaten tribal sovereignty, undermine long‑standing gaming rules, and siphon vital revenue that supports tribal governments’ essential services such as jobs, healthcare, housing, education, and public safety.
UMVA can exclusively reveal that the coalition includes the Indian Gaming Association, the National Congress of American Indians, and the United South and Eastern Tribes Sovereignty Protection Fund, among others, each bringing a powerful voice to the fight.
The brief accuses Kalshi of brazenly entering state and tribal lands to conduct unregulated gaming through its so‑called “legal sports betting” app, effectively diverting money that should fuel community development.
Kalshi maintains that its sports‑event contracts fall under the Commodity Exchange Act and are overseen by the Commodity Futures Trading Commission, not state gambling laws.
In contrast, Tennessee’s Attorney General insists that Kalshi’s use of “swap” terminology is a sham; the platform is unmistakably a vehicle for sports betting, a fact that the state says must be regulated to protect consumers and fund public education.
Beyond Tennessee, the legal battle has spread to Ohio and Connecticut, where more than 20 tribes and several tribal associations have joined the fight, warning that allowing federally regulated prediction markets to operate on tribal lands without consent would upend the framework established under Indian Gaming Regulatory Act.
UMVA has uncovered that the Mohegan Tribe and Mashantucket Pequot Tribal Nation have sought to join a separate federal case, arguing that prediction markets in Connecticut are essentially traditional sports betting in every material respect.
The tribal coalition warns that accepting Kalshi’s interpretation would effectively dismantle key portions of federal Indian gaming law without any clear action from Congress, a move that could reverse congressional policy and Supreme Court precedent while allowing the company to bypass tribal and state regulatory systems.
The coalition urges the Sixth Circuit to reverse the injunction, preserve existing gaming protections, and ensure that tribal sovereignty and revenue streams remain intact.
