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Kalshi Faces Federal Injunction over Sports Contracts on California Tribal Lands

The order follows a September appeals ruling and requires Kalshi to halt the contracts while the tribal gaming lawsuit continues.

  • U.S. District Judge Jacqueline Scott Corley barred Kalshi Inc. and KalshiEX from offering sports contracts on the lands of Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians in a preliminary injunction granted on November 4.
  • California tribes challenged the platform in July 2025, arguing that Kalshi facilitated unauthorized Class III gaming under the Indian Gaming Regulatory Act by allowing users on Indian lands to trade contracts based on sporting outcomes without authorization.
  • The restrictions cover contracts involving football, basketball, baseball, tennis, and other sports, though the ruling does not establish a statewide ban in California. Tribes must submit maps defining their land boundaries by November 13.
  • Kalshi must submit a report detailing its compliance measures within 21 days of the November 4 order, while Robinhood, named as a defendant in the underlying lawsuit, remains unaffected by this specific injunction.
  • A September 16 ruling by the Ninth Circuit Court of Appeals determined the Commodity Exchange Act did not prevent tribes from pursuing their claims. Attorney Daniel Wallach termed the injunction a "major development" in tribal gaming litigation.
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Key points of the news: A federal judge issued a preliminary order that prevents Kalshi from offering sports contracts on California's two-tribe lands, including football, basketball, baseball, football, tennis, and UFC markets. Tribes will be required to deliver maps of their boundaries by November 13 and Kalshi will have 21 days... Read more

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DeFi Rate broke the news on Thursday, November 5, 2026.
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