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Tribal gaming leaders are challenging sports prediction markets, arguing that platforms including Kalshi and Polymarket threaten tribal sovereignty and gambling protections.
According to NPR Las Vegas | Nevada Public Radio (KNPR 88.9), Nevada, Michigan and Washington are seeking to ban sports event contracts. Tribal advocates contend those products amount to illegal online sports betting outside state and tribal gambling rules.
Tribal Advocates Raise Sovereignty Concerns
The Indian Gaming Association and other tribal gaming leaders have worked with attorneys general nationwide to combat activity they consider illegal sports betting. KNPR reports that 44 attorneys general have joined a coalition opposing sports prediction markets.
Tribal leaders also raised concerns about youth access and responsible gambling safeguards. Those concerns form part of their broader argument that prediction-market companies disregard state and tribal authority.
Opposition has not prevented some tribes from pursuing partnerships. David Z. Bean said four tribes have decided to work with Kalshi, a move he argues undermines tribal sovereignty.
“I don’t know who in their right mind would waive tribal sovereignty to engage in an illegal activity,” Bean said.
State Challenges Could Move to Congress
KNPR reports that the 6th and 9th Circuit Courts of Appeals have ruled in favor of states in prediction-market disputes.
Holly Cook Macarro said prediction-market companies could turn to Congress following court losses. She pointed to their investments in candidates, super PACs and independent expenditures as evidence of a legislative strategy.
Her assessment adds a political dimension to the fight over who can regulate sports event contracts. The dispute involves prediction-market operators, state authorities and tribal gaming interests.
Texas Republican Sen. Ted Cruz said he plans to introduce legislation after the midterm elections. The bill would give states authority to allow or ban prediction-market companies, according to KNPR.
More from gamingtoday.com
– PitchBook Projects $1.2 Billion in Kalshi Adjusted Earnings for 2026
– Kalshi, Polymarket Giving Tops $5 Million Amid Gambling-Law Scrutiny
– NBA Becomes Fourth Major League To Partner With Prediction Markets
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Source: As reported by NPR Las Vegas | Nevada Public Radio (KNPR 88.9).
