A prominent tribal gaming leader praised Massachusetts for taking successful legal action against a popular prediction market platform.
Key Takeaways
- CNIGA chairman says Kalshi violates state law and tribal sovereignty by offering sports event contracts.
- Tribal gaming leaders in the Golden State are also battling prediction market platforms.
- Other states quickly took notice and action against Kalshi.
California Nations Indian Gaming Association chairman James Siva released a statement provided to Covers after Massachusetts gained a preliminary injunction ruling against Kalshi on Tuesday to stop the trading exchange from offering sports event contracts.
Tribal nations claim those markets violate the Indian Gaming Regulatory Act as a form of sports betting.
Enjoying Covers content? Add us as a preferred source on your Google account"We applaud Massachusetts for taking a firm stand against Kalshi, an unlicensed prediction market that is flagrantly violating state law and tribal sovereignty by pushing unregulated sports gambling products to anyone with a smartphone,” Siva said. “These companies are dodging rules that tribes and states rely on to protect consumers, generate tax revenue, and ensure accountability.
"But courts across the country are waking up to the threat these companies pose. (Tuesday’s) decision by Judge Barry-Smith follows a ruling late last year by a Nevada federal court that cleared that state to pursue potential criminal charges against Kalshi for offering illegal sports betting. The law is clear, and it is past time that Kalshi and other prediction markets abide by it."
More to come
Judge Christopher Barry-Smith ruled in favor of Massachusetts’ request to keep Kalshi from offering unregulated markets. The judge agreed that Kalshi is acting as an unlicensed gaming operator in the Bay State, a precedent that tribal and state leaders are latching on to in other cases. The two sides have until Wednesday at 4 p.m. ET to present a resolution to issues concerning the injunction, especially what to do with contracts placed by Massachusetts residents that are still open. The judge is expected to put the injunction in place Friday following a hearing.
Kalshi has come under fire from numerous state regulators, including Nevada, New Jersey, and Ohio, and other tribal nations, for offering spreads, totals, and moneyline markets that the opposition believes are sports betting. Kalshi has argued that it is regulated by the Commodity Futures Trading Commission and is not subject to state laws.
Tribal showdown
Siva and California tribes are also waging a legal battle with Kalshi. Multiple tribal nations in the Golden State filed a lawsuit against prediction platforms last year. They didn’t receive a favorable ruling and have appealed the decision to allow prediction companies to operate on tribal lands.
Could the ruling in the Bay State give tribal nations a chance in California? Gaming in the Golden State falls under compacts with the numerous Indian nations. Tribal gaming leaders have fought off FanDuel and DraftKings, two of the biggest sports betting brands in the U.S., in past years. Now, both are operating prediction markets in California, which gives tribal nations another familiar battle.
Other battles
Massachusetts is poised to become the first state to take legal action against Kalshi, effectively halting its operations. Other states quickly took advantage of the timing to file their own court orders. New York used the Massachusetts ruling to file a supplemental authority against Kalshi on Tuesday, and a preliminary injunction request is expected to follow.
Well, that didn't take long.
— Daniel Wallach (@WALLACHLEGAL) January 20, 2026
The Massachusetts court decision was just filed as supplemental authority by the @NYSGamingComm in the Kalshi v. New York case in the SDNY. A decision on Kalshi's motion for preliminary injunction is imminent. So, just in the nick of time. pic.twitter.com/QFRiCm5vWZ
Tennessee also took immediate action by filing an opposition to Kalshi’s preliminary injunction request. The Volunteer State sent the prediction market platform a cease-and-desist order, but a federal judge blocked Tennessee from taking legal action earlier this month.
