The Ho-Chunk Nation is seeking a permanent injunction against Robinhood and Kalshi to prevent them from engaging in illegal sports gambling.

The relevant complaint was filed on August 20, 2025 at the Wisconsin Western District Court.

The Ho-Chunk Nation accuses the defendants of engaging in illegal sports gambling on the Nation’s Indian lands in direct violation of the Indian Gaming Regulatory Act, 25U.S.C. § 2701 et seq. (“IGRA”), the Nation’s Tribal-State Gaming Compact (“Compact”) with the State of Wisconsin (“State”) entered into pursuant to the IGRA, the Nation’s Gaming Ordinance (“Ordinance”) approved by the Chairman of the National Indian Gaming Commission pursuant to the IGRA, and the Tribal Gaming Commissions’ regulations adopted pursuant to the Nation’s federally approved Ordinance and Compact.

The Tribe notes the recent changes in the gaming industry. Currently, 18-year-old high school students across the United States, including some that are located on Indian reservations, use their phones to place bets on the outcome of virtually every sporting event occurring across the globe, without any regulation of that betting by states or Indian tribes and the protective measures related to corruption and problem gambling imbedded in such regulatory schemes, in contravention of federal, state, and tribal law.

And they are placing those illegal bets using defendants Kalshi Inc. and KalshiEX LLC, (“Kalshi”), and Robinhood Markets, Inc. and Robinhood Derivatives LLC (“Robinhood”).

Kalshi, the plaintiff says, does not call its sports betting offerings sports gambling. Rather, Kalshi will tell the Court that it is a Designated Contract Market, regulated exclusively by the Commodities Futures Trading Commission (“CFTC”), and is merely operating a “prediction market” that permits the buying and selling of “commodities contracts,” or swaps on sporting events.

The plaintiff claims:

“While masquerading as novel commodities and futures products, these event contracts are, substantively, nothing more than illegal, unregulated wagers on the outcomes of sporting events.

Contrary to Kalshi’s assertions, Kalshi is engaging in sport gambling as defined by the IGRA and the Nation’s Compact and Ordinance”.

The plaintiff seeks an order from the Court enjoining Kalshi from conducting its illegal sports gambling operation.

In addition, the Nation seeks a permanent injunction enjoining Kalshi’s illegal gambling on its Indian Lands because such gaming is currently unregulated, violates the State’s Constitution and criminal law, and directly interferes with the ability of the Nation to govern itself under its own laws on its Indian Lands—lands owned by the United States of America in trust for the Nation.

The Ho-Chunk Nation, formerly known as the Wisconsin Winnebago, is a federally recognized Indian tribe. The Nation is the beneficial owner of and exercises jurisdiction over land held in trust for it by the United States of America, which is located throughout a 14-county area of the State of Wisconsin. The Nation engages in a variety of class III gaming activities at three gaming facilities located on the Nation’s trust land, pursuant to a Tribal-State gaming compact with the State of Wisconsin.

Defendant Kalshi Inc. is a Delaware corporation headquartered at 594 Broadway, Rm 407, New York City, New York 10012. On information and belief, it is the parent company of all other Kalshi entities.

Defendant KalshiEX LLC is a Delaware corporation headquartered at 594 Broadway Rm 407, New York City, New York 10012. On information and belief, it is a wholly owned subsidiary of Kalshi Inc. that operates as a commodities exchange.

Defendant Robinhood Markets, Inc. is a Delaware corporation headquartered at 85 Willow Road, Menlo Park, California 94025. On information and belief, it is the parent company of all other Robinhood entities (collectively, “Robinhood”). Robinhood is an investment platform that permits trading on stocks, ETFs, and other commodities. Robinhood has partnered with Kalshi to open—on the Robinhood investment platform – a prediction market hub, allowing persons located both on and off the Nation’s Indian Lands to place illegal, unregulated wagers in the form of event contracts.

Defendant Robinhood Derivatives LLC is a Delaware corporation headquartered at 85 Willow Road, Menlo Park, California 94025. On information and belief, it is the wholly owned subsidiary of Robinhood Markets, Inc. It is a futures commission merchant and provides options on futures trading. It is the division of Robinhood that has partnered with Kalshi to offer a prediction market hub, allowing persons located both on and off the Nation’s Indian Lands to place illegal, unregulated wagers in the form of event contracts.

Robinhood and Kalshi are facing another lawsuit over illegal sports gambling brought by Indian Tribes – the Blue Lake Rancheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians.

There is a similar lawsuit brought by Ohio Gambling Recovery LLC against Robinhood. The plaintiff seeks recovery of gambling losses.