Kalshi hit with injunction over sports contracts on California tribal lands

A federal judge has granted a preliminary injunction barring Kalshi from offering sports-event contracts on the lands of two California tribes.

In a Wednesday order, U.S. District Judge Jacqueline Scott Corley ruled that the injunction covers contracts tied to sports including football, basketball, baseball, soccer, tennis, and Ultimate Fighting Championship events.

The tribes — Blue Lake Rancheria and the Chicken Ranch Rancheria of Me-Wuk Indians — must provide boundary maps by Nov. 13, the judge said. 

Kalshi is required to report the status of the steps it has taken to comply with the injunction within 21 days, according to the order.

Sports and gaming attorney Daniel Wallach described the order as the first preliminary injunction secured by tribes against Kalshi nationwide, calling it "a major development in tribal gaming litigation."

Appeals court reversal

The tribes filed the lawsuit in July 2025, alleging that Kalshi's sports event contracts constitute unauthorized Class III gaming under the Indian Gaming Regulatory Act (IGRA) and violate the tribes' gaming ordinances. 

Kalshi has argued that its sports event contracts are federally regulated swaps under the Commodity Exchange Act (CEA), and that the CEA's grant of exclusive jurisdiction to the Commodity Futures Trading Commission preempts tribal gaming law.

The judge initially denied the tribes' motion for a preliminary injunction in November 2025. The tribes then appealed, and a Ninth Circuit panel partially reversed the decision in September. 

"Reversing the district court's denial of a preliminary injunction in part, the panel held that the tribes were likely to succeed in their claims that Kalshi's sports event contracts on tribal lands violated IGRA and the tribes' gaming ordinances," the panel wrote.

The Ninth Circuit panel also held that the CEA's "exclusive" jurisdiction did not extend to Kalshi's sports event contracts.

The Block has reached out to Kalshi for comment.

Ongoing legal battles

Kalshi faces mounting legal challenges, with more states taking action against the prediction markets platform.

On Wednesday, Arkansas Attorney General Tim Griffin sued Kalshi for allegedly operating an illegal gambling platform in the state. 

"It doesn't take a genius to understand that wagering money on whether the Razorbacks win or lose is gambling," Griffin said, adding that such practice is "squarely prohibited" by Arkansas law.

Last week, Utah also filed criminal charges against Kalshi and two company executives, accusing them of illegally promoting online gambling. Utah has also sued Kalshi and two Susquehanna trading firms for allegedly operating an illegal gambling business.