A recent Indian Gaming Association (IGA) webinar brought prediction markets into the spotlight, with Sporttrade CEO Alex Kane joining IGA Executive Director Jason Giles and Conference Chairman Victor Rocha to explore the legal and operational implications of this emerging segment of the gaming industry.
Tribal Concerns Over Regulation and Sovereignty
Much of the discussion focused on how companies like Kalshi, which offers sports event contracts, are perceived by tribal governments. Rocha pointed out that these platforms “bypass the tribal regulatory structure” and undermine tribal sovereignty. Tribes argue that such services need to fall under federal and state gaming regulations to ensure fair oversight and consumer protection.
Sporttrade, by contrast, is licensed in several U.S. states, including New Jersey, Arizona, Colorado, Iowa, and Virginia, and has partnerships with tribal entities like the Quechan Indian Tribe of the Fort Yuma Indian Reservation.
Kane emphasized that Sporttrade is “a betting exchange,” likening it to the NASDAQ. “Sporttrade is very similar, in that our tickers aren’t stocks, but are outcomes of sporting events,” he said.
Rocha acknowledged Sporttrade’s more transparent approach to odds and its willingness to engage with the tribal sector, saying, “Alex is the first to say we’re regulated and already working with tribes and this is how our relationships are going.”
Consumer Protection, Market Integrity, and the Federal Route
Kane stressed that Sporttrade prioritizes consumer protections and integrity in sports leagues. Giles echoed this sentiment, applauding the exchange for not penalizing successful bettors. “The existing model of odds was invented by sportsbooks, such that it obfuscates understanding what the hell is going on,” Kane added.
Sporttrade is seeking federal approval from the U.S. Commodity Futures Trading Commission (CFTC) to further expand nationally. This sets it apart from Kalshi, which has claimed its contracts are not gambling—a stance Rocha challenged. “Claiming that this isn’t gambling nullifies everything you’re going to say after that,” Kane responded.
Rocha noted that some tribal leaders are skeptical of big operators that disregard tribal interests. “From the tribal perspective, they’ve just had bad experiences with the big companies telling tribes how it’s supposed to be,” he said.
A New Model for Tribal Participation
Looking ahead, Kane suggested that tribes could gain a competitive edge by adopting federally compliant digital platforms. He explained a model where tribes act as brokers, connecting players to exchanges and collecting commissions. “That isn’t a loophole,” he emphasized. “There’s a legal way. You can introduce patrons to a brand, create a relationship, and own the monetization of that customer.”
When asked how Sporttrade would approach California, Kane distanced his strategy from large sportsbook operators. “We wouldn’t come into a jurisdiction and say we know what’s best,” he said. Instead, he offered collaboration, better pricing, and respect for local sovereignty.
Rocha concluded by underscoring the unresolved legal status of prediction markets, especially regarding the Indian Gaming Regulatory Act and the Wire Act. “That’s still to be defined, by the way,” he said.
Source:
“IGA and industry CEO explore prediction markets’ impact on tribal gaming”, cdcgaming.com, May 26, 2025
The post IGA Panel Examines Tension Between Prediction Markets and Tribal Gaming first appeared on RealMoneyAction.com.