Tribal gaming leaders in the United States have intensified opposition to sports-related prediction markets, outlining a coordinated legal and political response aimed at federal regulators. Discussions at a major industry convention in San Diego underscored concerns that these platforms could weaken existing tribal and state gaming systems.
The opening sessions of the Indian Gaming Association’s annual event focused heavily on event-based contracts, with speakers describing the issue as a major challenge for tribal gaming.
Legal Action and Court Strategy
Panelists detailed ongoing legal efforts involving platforms such as Kalshi, including cases in Arizona and other jurisdictions. Attorneys confirmed plans to continue filing amicus briefs while preparing potential action against the Commodity Futures Trading Commission (CFTC).
Scott Crowell said, “One of the things we have been looking at is what’s going to be the right case?” He added, “The first action? The criminal action? We’re going to bring action against the CFTC, and we believe we have a good solid legal theory as to how to bring that about and bring it about now.”
He also noted, “Making a case against the CFTC is the proper move to get the proper case in front of the Supreme Court.” Michael Hoenig said, “I think there is some concern that if you try to go after some Coinbases here, some Kalshis there, it’s like Whac-A-Mole …. So if we can go after the CFTC, it kind of lops the head off, ends things at a one-stop shop.”
Regulatory Concerns and Market Effects
Tribal leaders argue that prediction markets resemble sports betting while avoiding regulatory requirements such as licensing, taxation, and consumer protections. These platforms operate nationwide, including in restricted states, raising concerns about lost revenue and oversight.
James Siva said the CFTC approach reflects “misregulation and deregulation,” adding, “we are not going to win on that battlefield. And I know there is some pessimism in this room … but we will not lose, not this issue, not this day.”
Elizabeth Homer said, “It takes the tribes out of the picture. It leaves tribes and states in the same place [they’re currently in] with no taxation and no benefit in a stolen marketplace.” Victor Rocha added, “It’s about erasure … all that money you’ve put into marketing, it’s gone.”
Litigation Fund and Political Push
The association has approved a resolution opposing event contracts and plans to establish a litigation fund of $3 million to $5 million. The fund will support legal action against the CFTC and related cases.
David Z. Bean said, “These so-called prediction markets are an attempt to bypass tribal authority and recast gambling as a financial product.” He added, “We will stand united to defend the integrity of Indian gaming.”
Leaders are also urging Congress to clarify that sports-related contracts should be treated as gambling, while working with states and industry groups to build support. Bean said, “This is bigger than Indian Gaming, and it’s not just about protecting tribal sovereignty, but state sovereignty, too.”
Source:
“Mission Accomplished: IGA Mobilizes Indian Country Against Prediction Markets“, ingame.com, March 31, 2026
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