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Three California tribes have taken legal action to stop what they describe as unauthorized sports betting activity by Kalshi and Robinhood. The Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians, and Picayune Rancheria of the Chukchansi Indians filed a lawsuit on Tuesday, calling for both a preliminary and permanent injunction.
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At the heart of the case is the claim that Kalshi and Robinhood are offering Class III gaming, specifically sports betting, without state-approved agreements. Under IGRA, Class III gaming cannot legally occur on tribal land unless there is a compact in place between the tribe and the state.
The lawsuit states:
“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.”
The tribes say that any such activity, especially without proper agreements, infringes on their gaming rights and violates federal law. They want the court to step in and prevent both Kalshi and Robinhood from continuing any sports betting operations that may affect tribal territories.
Adding more pressure, the lawsuit also brings in the Racketeer Influenced and Corrupt Organizations (RICO) Act. Under this federal law, two or more racketeering actions within a 10-year span can trigger serious consequences. That includes fines up to $25,000, up to 20 years in prison, and seizure of any property tied to illegal conduct.
The tribes are asking for broad enforcement, not just stopping the betting but potentially penalizing any financial gains made from what they call an illegal business model.
At this stage, neither Kalshi nor Robinhood has responded publicly to the lawsuit.