Kalshi faces federal injunction over sports contracts on tribal lands

Injunction granted by federal judge

A U.S. District Judge has issued a preliminary injunction preventing Kalshi from offering sports-event contracts on the lands of the Blue Lake Rancheria and the Chicken Ranch Rancheria of the Me-Wuk Indians. The judge ruled that contracts associated with sports events like football, basketball, and UFC are included in this injunction.

Key legal details

• The injunction requires the tribes to submit boundary maps by November 13.
• Kalshi must report on its compliance steps within 21 days of the order.
• This marks the first preliminary injunction against Kalshi from tribes across the nation, according to sports legal expert Daniel Wallach.

Background of the lawsuit

The tribes filed their lawsuit in July 2025, arguing that Kalshi's activities fall under unauthorized Class III gaming as defined by the Indian Gaming Regulatory Act (IGRA). Kalshi contends that its contracts are federally regulated swaps, claiming they are subject to the Commodity Exchange Act (CEA), which preempts tribal gaming laws.

Previously, a judge denied the tribes' request for an injunction, but a Ninth Circuit panel later partly overturned that decision, indicating the tribes have a strong case against Kalshi.

Ongoing challenges for Kalshi

Kalshi is facing additional legal actions, as Arkansas has filed a lawsuit accusing the platform of running an illegal gambling operation. Utah has also taken action against Kalshi and its executives, alleging illegal promotion of online gambling.

Sources of information

• The Block

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