Ninth Circuit rules Kalshi violates tribal gaming law on California lands
The US Court of Appeals for the Ninth Circuit ruled 3-0 that Kalshi's event contracts likely violate federal Indian gaming law when accessed from tribal lands in California. The court sided with the Blue Lake Rancheria Indians and the Chicken Ranch Rancheria. The ruling dismissed Robinhood from the lawsuit. A district judge had previously denied the tribes' motion to block Kalshi on tribal lands. The appeals court found Kalshi may violate tribal rights to regulate gaming on their lands.
Kalshi must now geofence two tribal jurisdictions in California plus Nevada or face contempt and state enforcement. The Ninth Circuit has twice ruled in under a week that tribal compacts override federal CFTC registration, first in Nevada and now on California tribal lands. Each loss invites more tribes with state compacts to file copycat actions.
Robinhood's white-labeled Kalshi products lose tribal territory too since its intervention failed. Traders hold positions whose validity shifts with geography, not regulation. The platform's preemption shield is crumbling while New Jersey petitions the Supreme Court for intervention. Every month of cert consideration risks another tribe or state stepping through the opening.