Wisconsin Ho-Chunk Nation Free To Sue Kalshi
Jesse M. Cox Published 15/05/2026
The US Court for the Western District of Wisconsin has denied a motion from prediction market site Kalshi to dismiss a lawsuit filed by Wisconsin's Ho-Chunk Nation. The lawsuit is regarding potential violations of the Indian Gaming Regulatory Act of 1988 (IGRA).
Lawyers representing the Ho-Chunk Nation successfully argued that Kalshi’s event contracts in relation to sports events that are being traded on tribal lands are in violation of federal law and infringe upon tribal sovereignty. District Judge William M. Conley ruled that this argument holds merit and that the lawsuit may go forward. "Stating a claim requires only plausible allegations, which plaintiff’s complaint has done," Conley wrote in his ruling.
Court Rules in favor of the Ho-Chunk Nation
In its Opinion and Order, the court denied efforts by Kalshi to dismiss the Ho-Chunk Nation's core IGRA claims. Judge Conley agreed that Kaslshi's online sports event contracts constitute Class III gaming on tribal land without authorization of compliance with the Tribal-State Gaming Compact.
"The Ho-Chunk Nation has consistently maintained that tribal governments retain the sovereign authority to regulate gaming within our jurisdiction," Jon Greendeer, President of the Ho-Chunk Nation, said in a statement.
"This decision confirms that tribal sovereignty and IGRA protections do not disappear simply because private entities attempt to rebrand gambling. We have followed the rules at every step and will continue to defend our exclusive rights to operate gaming under the IGRA."
The court also rejected arguments from Kalshi that federal commodities regulations override tribal gaming authority under IGRA.
The Ho-Chubk filed its original complaint in November 2025. They were asking for the court to enjoin Kalshi from offering sports-related contracts through Designated Contract Markets (DCMs) on its sovereign lands.
This ruling may have a major impact on prediction market sites
This is a court case that is being scrutinized by tribes across the USA, as well as by the prediction market sites. Under federal regulatory control of the Commodities Futures Trading Commission (CFTC), prediction market sites argue that they are free to legally operate in all 50 states. They also debate that state sports betting regulations don't apply to them, since federal law supersedes state laws.
However, the flaw in this argument comes with tribal lands entering the debate. The IGRA is also a federal regulation. Can the CFTC's Commodity Exchange Act legally operate when intersecting with sovereign tribal lands? It's a question that could have a legal precedent in place by the conclusion of this trial.
The outcome could have far-reaching effects in influencing how other tribal gaming authorities opt to combat the infiltration into what to date has been solely their domain in many states.
The Wisconsin federal court ruling joins an Ohio federal court ruling in recognizing that the offering of sports-event contracts on tribal lands implicates IGRA. There is also an ongoing case of this issue involving California tribes. Expect more tribes to take their case against prediction markets to court.
U.S. gaming law and sports betting attorney Daniel Wallach describes the Wisconsin court ruling as a "major development for tribes," on his LinkedIn Page.
An Amicus brief could be forthcoming from the CFTC
Several tribal organizations requested and have been granted the right to file Amicus briefs regarding the Wisconsin ruling. They include the Indian Gaming Association, National Congress of American Indians, the Native American Finance Officers Association, 16 federally recognized Indian tribes, and Indian Gaming Associations in Arizona, California, Oklahoma, and Washington.
Expectations are that the CFTC will file an Amicus brief on behalf of Kalshi. The federal regulator has done so in support of prediction market sites in other ongoing legal action.