Native American Tribes Claim Kalshi Prediction Markets ‘Siphon’ Money From Casinos

A coalition representing leading Native American tribal gaming enterprises has escalated its protest against online prediction market platforms, specifically naming Kalshi, alleging that these financial products are illegally siphoning gambling revenue away from tribal casinos. The tribes claim that Kalshi’s offerings, which allow users to bet on outcomes ranging from economic data to political events, are effectively unauthorized, competitive wagering platforms that undermine the multi-billion dollar tribal gaming industry.

Tribal casinos rely heavily on exclusive gaming compacts negotiated with state governments, which guarantee specific market protections in exchange for shared revenue. Leaders argue that the influx of easily accessible, high-frequency prediction markets directly competes for the same disposable income historically earmarked for entertainment gambling.

‘These are sophisticated wagers cloaked in the terminology of finance,’ stated Chairman Robert Eagle Feather of the National Tribal Gaming Commission. ‘Our research shows a clear migration of recreational gamblers’ funds towards these lightly regulated exchanges. This activity violates the spirit of our compacts and jeopardizes the essential governmental services—healthcare, education, and infrastructure—that tribal gaming revenues fund.’

Kalshi, regulated by the Commodity Futures Trading Commission (CFTC), has repeatedly defended its position, asserting that its products are derivatives contracts and are legally distinct from traditional gambling or sports betting. A spokesperson for Kalshi stated, ‘We operate within strict federal guidelines and offer legitimate tools for hedging and speculation based on verifiable outcomes. We do not compete with casino table games or slots, and any claims of illegal siphoning are based on a fundamental misunderstanding of our regulatory framework.’

The Native American coalition has announced plans to lobby Congress and state regulatory bodies to redefine the legal scope of prediction markets, arguing that their structure makes them subject to the provisions of the Indian Gaming Regulatory Act (IGRA). If legislative action is not taken, the tribes are prepared to pursue litigation aimed at halting the operation of such markets within states where tribal compacts grant gaming exclusivity.

Source: Native American Tribes Claim Kalshi Prediction Markets ‘Siphon’ Money From Casinos