What did the Wisconsin federal judge rule against Kalshi?

A Wisconsin federal judge ruled that the Ho-Chunk Nation is likely to succeed in blocking Kalshi from offering sports event contracts on tribal land under the Indian Gaming Regulatory Act (IGRA).

Why is the Kalshi ruling important for prediction markets?

The decision is the first federal ruling siding with tribal plaintiffs against Kalshi’s sports prediction contracts. It could strengthen legal arguments that certain sports event contracts function similarly to gambling products rather than regulated financial derivatives.

What is the Indian Gaming Regulatory Act (IGRA)?

IGRA is a US federal law governing gambling operations on Native American tribal lands. Tribes argue Kalshi’s sports contracts violate their exclusive gaming rights and undermine tribal gaming revenues protected under the law.

Why are tribes challenging Kalshi’s sports event contracts?

The tribes argue Kalshi’s sports prediction markets operate like sports betting without complying with tribal gaming agreements. They claim the contracts compete directly with regulated tribal gaming operations while bypassing existing gambling laws.

How did this Wisconsin ruling differ from the earlier California case?

A California federal judge rejected similar tribal arguments in November 2025, ruling the plaintiffs had not shown a likely IGRA violation. The Wisconsin decision creates a split in federal court interpretations, increasing uncertainty around prediction-market regulation.

What legal defence is Kalshi using in these lawsuits?

Kalshi argues its event contracts are legal because the platform operates as a CFTC-regulated designated contract market. The company says federal commodities law preempts state gambling restrictions and exempts its products from standard betting definitions.

Why are Robinhood and Robinhood Derivatives involved in the case?

The lawsuit alleges Robinhood and its derivatives unit helped distribute or facilitate access to Kalshi’s sports event contracts. The tribes included them as co-defendants alongside Kalshi and KalshiEX.

What are the RICO claims against Kalshi?

The lawsuit includes Racketeer Influenced and Corrupt Organizations Act allegations, describing Kalshi’s sports contract business as a “Gaming Racket.” These claims significantly raise the legal stakes because RICO cases can involve broader financial and operational penalties.

Wisconsin judge backs tribe against Kalshi

Written by Isaac FrancisPublished May. 13 2026

A Wisconsin federal judge ruled that the Ho-Chunk Nation is likely to succeed in its lawsuit accusing Kalshi of violating the Indian Gaming Regulatory Act by offering sports event contracts on tribal land.

US District Judge William M. Conley issued the decision on May 11, 2026, marking the first federal ruling siding with tribal plaintiffs in ongoing litigation over Kalshi’s sports prediction markets.

The Ho-Chunk Nation sued Kalshi, KalshiEX, Robinhood and Robinhood Derivatives in August 2025, arguing the companies unlawfully offered sports-related event contracts on tribal lands.

The ruling diverges from a November 2025 California federal court decision that denied a similar request from several tribes seeking to block Kalshi’s operations under IGRA.

Judge Jacqueline Scott Corley previously ruled the California tribal plaintiffs had not demonstrated a sufficient likelihood of success on their IGRA claims, although that decision is now under appeal before the Ninth Circuit.

The Wisconsin case also includes Racketeer Influenced and Corrupt Organisations Act claims describing Kalshi’s sports contracts business as a “Gaming Racket,” alongside allegations of false advertising.

Kalshi has argued throughout the litigation that its status as a CFTC-regulated designated contract market exempts its event contracts from federal gambling definitions under existing commodities law.

The ruling arrives amid wider regulatory disputes over prediction-market sports contracts after Wisconsin Attorney General Josh Kaul filed separate lawsuits against Kalshi, Robinhood, Polymarket, Crypto.com and Coinbase alleging violations of state gambling laws.