
A coalition of tribal organizations and federally recognized tribes asks the U.S. Court of Appeals for the Sixth Circuit to overturn a preliminary injunction that temporarily blocks Tennessee from enforcing its sports wagering laws against prediction market operator Kalshi. The filing supports Tennessee Attorney General Jonathan Skrmetti and state officials. Tribal groups argue Kalshi’s position would weaken tribal sovereignty, disrupt long-standing gaming regulations, and reduce revenue that funds tribal governments. The coalition includes more than 25 groups, including national tribal organizations and regional gaming groups. The brief cites the Indian Gaming Regulatory Act’s purpose of supporting tribal economic development and self-sufficiency. It alleges Kalshi operates unregulated gaming on state and tribal lands and diverts revenue away from tribal and state governments. Kalshi argues its sports-event contracts fall under the Commodity Exchange Act and federal oversight rather than state gambling laws.
"A coalition of tribal organizations and federally recognized tribes is asking a federal appeals court to overturn a ruling that temporarily blocked Tennessee from enforcing its sports wagering laws against prediction market operator Kalshi. The filing, submitted Tuesday (May 26) to the U.S. Court of Appeals for the Sixth Circuit, backs Tennessee Attorney General Jonathan Skrmetti and state officials in their challenge to a preliminary injunction granted to Kalshi. Tribal groups argue the company's legal position would weaken tribal sovereignty, disrupt long-standing gaming regulations, and erode revenue that supports tribal governments."
"According to the tribes, Congress created the Indian Gaming Regulatory Act in 1988 to support "tribal economic development, self-sufficiency, and strong tribal governments." They told the court that gaming revenue has become a critical source of funding for jobs, healthcare, housing, education, public safety, and other government services. The brief argues that "Kalshi has brazenly entered onto state and tribal lands across the nation to conduct unregulated gaming with its so-called 'legal sports betting' app.""
"Tribal groups further contend that the company is "siphoning away vital tribal and state governmental revenue to its owners' pockets." The coalition includes more than 25 groups such as the Indian Gaming Association, the National Congress of American Indians, the United South and Eastern Tribes Sovereignty Protection Fund, regional tribal gaming groups, and tribes from across the country. On the same day, the American Gaming Association also filed its own supporting brief."
"Kalshi claims that sports-event contracts offered through its platform fall under the Commodity Exchange Act and federal oversight by the Commodity Futures Trading Commission rather than state gambling laws."
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