Prediction market operator Kalshi has formally requested a Maryland federal court to dismiss an amicus brief submitted by a coalition of 27 Native American tribes and seven tribal associations. The company labeled the filing “untimely and unhelpful,” contending the tribes have no legal stake in the dispute over whether Kalshi must adhere to Maryland’s gambling laws.
The case stems from the Maryland Lottery and Gaming Control Commission’s (MLGCC) cease-and-desist order against Kalshi. The regulator accused Kalshi of facilitating unauthorized sports wagering without a license. In response, Kalshi filed for a preliminary injunction, arguing the order was unconstitutional and violated federal law.
Kalshi: Tribal Brief Filed Too Late and Adds No Value
In its opposition, Kalshi argued that amicus briefs must generally be filed within seven days of an initial suit, unless the court allows otherwise. The tribes’ motion, submitted more than a month after the state’s opposition to Kalshi’s injunction request, failed this timing standard, Kalshi said.
The company also challenged the relevance of the brief, stating the tribes have “no clear stake” in whether Kalshi is required to comply with Maryland’s gaming framework. “Kalshi wishes to be accommodating of parties claiming an interest in the ongoing preemption litigation, and has consented to all amicus briefs in the now-pending Third Circuit appeal,” Kalshi stated.“But this putative amicus brief is untimely and unhelpful.”
The opposing tribes include nationally recognized groups such as the Indian Gaming Association (IGA), California Nations Indian Gaming Association (CNIGA), and similar associations from Arizona, Oklahoma, and beyond.
Sovereignty and Legal Precedents at the Forefront
The tribal coalition argues that Kalshi’s prediction markets, which offer event contracts related to sports outcomes, are essentially illegal gambling. Their brief insists that allowing Kalshi to operate would undermine tribal sovereignty established under the Indian Gaming Regulatory Act (IGRA). The tribes also say Kalshi’s contracts are gambling products not permitted under the Commodity Exchange Act (CEA), which governs futures trading through the Commodity Futures Trading Commission (CFTC).
A similar amicus brief was filed in an ongoing Third Circuit case involving Kalshi and New Jersey regulators. In both instances, the tribes contend that the CFTC has already determined such contracts are not in the public interest and should therefore be prohibited under federal law.
Kalshi disputes this interpretation, arguing that CFTC regulations require both criteria—gaming and public interest—to be met for a contract to be banned.
Friction Between Kalshi and Tribal Leaders Escalates
The legal tension has spilled into public exchanges. After Kalshi publicly stated it had “productive conversations with several tribes,” IGA conference chair Victor Rocha strongly rejected that characterization. Rocha told Sportico he had two calls with Kalshi CEO Tarek Mansour and called him “a lying little twerp.” CNIGA Chair James Siva also confirmed fundamental disagreements during those discussions.
While no lawsuit from the tribes has been filed yet, Rocha hinted that legal action may soon follow. Kalshi maintains that tribal sovereignty over gambling on their own lands is intact and not threatened by its operations elsewhere.
Source:
“Kalshi wants tribes to butt out of Maryland event contract case”, X.com “Daniel Wallach”. Jun 24, 2025
The post Kalshi Challenges Tribal Involvement in Maryland Legal Dispute first appeared on RealMoneyAction.com.