Three federally recognized Indian Tribes, the Blue Lake Rancheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians have filed a lawsuit against Kalshi and Robinhood.

The action, launched at the California Northern District Court, seeks a preliminary and permanent injunction against the defendants to prevent them from engaging in illegal sports gambling on the Tribes’ respective reservations in direct violation of the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. (“IGRA”), the Tribes’ Tribal-State Gaming Compacts with the State of California entered into pursuant to the IGRA, Secretarial Procedures issued by the Secretary pursuant to the IGRA, the Tribes’ Gaming Ordinances approved by the Chairman of the National Indian Gaming Commission pursuant to the IGRA, and the respective Tribal Gaming Commissions’ regulations adopted pursuant to the Tribes’ federally approved Ordinances and Compacts, all of which prohibit sports gambling on the Tribes’ reservations or “Indian Lands”, as defined by the IGRA.

For the majority of US history, gambling on sports has been illegal under federal law and the laws of most states for both moral reasons and to ensure that sporting events are fair and free from gambling-related corruption. In 1992, Congress enacted the Professional and Amateur Sports Protection Act, 28 U.S. Code § 3701 et seq., which purported to bar the States (other than Nevada and New Jersey) from authorizing sports betting.

In 2018, however, the Supreme Court struck down that Act, recognizing that “Americans have never been of one mind about gambling[,]” and holding that Congress could not lawfully impose such a barrier on state lawmakers. Since then, most states have legalized sports gambling thorough licensing and registration regimes and, typically, require bettors to be 21 years old to place sports bets.

Indian tribes, too, have begun to offer sports gambling on their reservations in those states where, consistent with the IGRA, the state permits such gambling under state law.

In 2025, the gaming industry shifted significantly. Currently, 18 year old high school students across the United States – including some that are located on Indian reservations- are on their phones placing 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, according to the Tribes’ Complaint, they are placing those illegal bets using defendants Kalshi Inc. and KalshiEX LLC, and Robinhood Markets, Inc. and Robinhood Derivatives LLC.

The Tribes Complaint alleges that, contrary to Kalshi’s assertions, Kalshi is engaging in sport gambling as defined by the IGRA and the Tribes’ Compacts, Procedures, and Ordinances.

Therefore, the Tribes seek an order from the Court enjoining Kalshi from conducting its illegal sports gambling operation.

In addition, the Tribes seek a permanent injunction enjoining Kalshi’s illegal gambling on Indian lands because such gaming is currently unregulated, violates the State’s Constitution and penal code provisions, and directly interferes with the ability of the Tribes to govern themselves under their own laws on their Reservations—land owned by the United States of America in trust for the Tribes.

Defendant Kalshi Inc. is a Delaware corporation headquartered at 594 Broadway, Rm 407, New York City, New York 10012. Plaintiffs are informed and believe, and on that basis allege, that Defendant Kalshi Inc. 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. Plaintiffs are informed and believe, and on that basis allege, that Defendant KalshiEX LLC 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. Plaintiffs are informed and believe, and on that basis allege, that Defendant Robinhood Markets, Inc. is the parent company of all other Robinhood entities. Robinhood is an investment platform that permits trading on stocks, Exchanged Traded Funds (‘ETFs”), and other commodities.

As relevant here, Robinhood has partnered with Kalshi to open, on the Robinhood investment platform, a prediction market hub, allowing persons located both on and off the Tribes’ respective Reservations to place illegal, unregulated sports book wagers on the outcome of sporting events, in the form of “event contracts.”

Defendant Robinhood Derivatives LLC is a Delaware corporation headquartered at 85 Willow Road, Menlo Park, California 94025. Plaintiffs are informed and believe, and on that basis allege, that Defendant Robinhood Derivatives LLC is a wholly owned subsidiary of Robinhood Markets, Inc. It is a futures commission merchant and provides options on futures trading.

As relevant in this case, it is the division of Robinhood that has partnered with Kalshi to offer a prediction market hub that allows persons to engage in illegal sports gambling by placing illegal, unregulated wagers on the outcome of sporting events in the form of event contracts on the Tribes’ Reservations.

Plaintiff Blue Lake Rancheria is a federally recognized Indian tribe, organized under the provisions of the Indian Reorganization Act, 25 U.S.C. § 476, under a written Constitution, which has been approved by the Secretary and which designates the Blue Lake Business Council as the governing body of Blue Lake. Blue Lake is the beneficial owner of the Blue Lake Rancheria (“Blue Lake Reservation”), which consists of approximately 26 acres of trust and fee lands located within the exterior boundaries of the Blue Lake Reservation in Humboldt County, California.

Blue Lake conducts class-III gaming on its Blue Lake Rancheria pursuant to the IGRA, its Secretarial Procedures, and its Gaming Ordinance.

Plaintiff Chicken Ranch Rancheria of Me-Wuk Indians is a federally recognized Indian tribe organized under a written Constitution, which designates the Chicken Ranch Tribal Council as the governing body of Chicken Ranch. Chicken Ranch is the beneficial owner of the Chicken Ranch Rancheria or reservation, which consists of approximately 40 acres of trust and fee lands located within the exterior boundaries of the Rancheria in Tuolumne County, California. Chicken Ranch conducts class-III gaming on its Chicken Ranch Rancheria pursuant to the IGRA, its Secretarial Procedures, and its Gaming Ordinance.

Plaintiff Picayune Rancheria of Chukchansi Indians is a federally recognized Indian tribe, organized under a written Constitution, which designates the Picayune Rancheria Tribal Council as the governing body of the Tribe. The Tribe is the beneficial owner of the Picayune Rancheria, which is located in Madera County, California.

Picayune conducts class-III gaming on its Picayune Reservation pursuant to the IGRA, its Compact, and its Gaming Ordinance.