Kalshi Moves to Shut Down Ho Chunk Nation Lawsuit in Wisconsin Federal Court
Kalshi has asked a federal judge in Wisconsin to dismiss a lawsuit brought by the Ho Chunk Nation, arguing that the tribe cannot use the Indian Gaming Regulatory Act to challenge the company’s prediction market products. The case has emerged as one of the most closely watched disputes in the widening legal fight over whether event contracts amount to unlicensed sports betting.
Tribe Says Kalshi and Robinhood Cross Into Sports Betting
The Ho Chunk Nation filed its complaint in August, claiming that Kalshi and its distribution partner Robinhood are operating an online sports betting business that reaches users on tribal lands. According to the tribe, Kalshi’s event based contracts mirror traditional sports wagers and therefore fall under Class III gambling. The Nation argues that these activities undermine its long standing authority under federal law and its compact with the state of Wisconsin.
The complaint says the platforms have expanded quickly, driven in part by online advertising, and that this growth has intruded on tribal regulatory powers. By allowing users across the country, including those on reservations, to bet on outcomes, the tribe argues the companies have violated the Indian Gaming Regulatory Act.
Kalshi Challenges the Tribe’s Right to Sue
On 21 November Kalshi urged the court to throw out the lawsuit permanently. The company argues that IGRA allows tribes to sue only when terms of a tribal state compact are violated. Since Kalshi is not a party to the compact, the company says the Ho Chunk Nation has no legal basis to bring the case.
Kalshi referenced a recent decision in California where three tribes were unsuccessful in blocking its operations. The company says the Wisconsin lawsuit rests on similar arguments and reflects what it calls a mistaken belief that tribes can force outside companies to follow compact terms beyond reservation boundaries.
The filing also notes that the Commodity Exchange Act governs Kalshi’s exchange and that its products fall under the oversight of the Commodity Futures Trading Commission. Kalshi says this framework separates its contracts from traditional gambling and that core operations occur in New York and Delaware rather than where individual users reside.
What Happens Next in the Case
The Ho Chunk Nation must file its response to the dismissal request by 19 December. Kalshi will then be allowed to reply before Judge William Conley decides whether the case should continue.
The Wisconsin action is part of a broader wave of legal challenges in states including Nevada, New Jersey, Massachusetts and Maryland. Together these cases are shaping an early test of how federal law applies to prediction markets as they move closer to the edge of regulated sports betting.
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