Connecticut's Mohegan and Mashantucket Pequot tribes have filed a lawsuit against the prediction market platform Kalshi, alleging violations of the Indian Gaming Regulatory Act (IGRA). The tribes claim that Kalshi's operations, which allow trading on event outcomes, constitute illegal gambling that competes with their casino businesses. This legal action follows Connecticut's previous enforcement against similar platforms, highlighting the tension between fintech innovation and established gaming laws.
Kalshi, valued at $11 billion, argues that its markets are financial instruments, not gambling. However, the tribes emphasize that IGRA grants them exclusive rights to certain gaming activities, and Kalshi's lack of tribal consent violates federal law. The outcome of this case could set a precedent for how prediction markets are regulated, impacting both tribal sovereignty and the broader fintech landscape.
Connecticut Tribes Sue Kalshi Over Alleged Gaming Law Violations
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