Alabama-Quassarte Tribe Sues Kalshi

The Alabama-Quassarte Tribal Town has sued Kalshi. According to the plaintiffs, Wilson Yargee, who has no authority to represent the tribe, approved the agreement for PokkeTrades, the prediction market app. The lawsuit was filed on October 30 in the Muscogee (Creek) Nation district court. Defendants include Kalshi, its CEO and co-founder Tarek Mansour, Yargee and Michael Stopp. The suit was also filed by Samuel Marshall Jr., who describes himself as the tribe's legitimate chief.

The agreement was announced on October 7, and the app is planned to launch in November. The Marshall administration argues that the tribe's governing council did not approve the agreement and that Yargee was removed from office in 2021. Yargee denies being removed and says he had the authority to negotiate with Kalshi. The leadership dispute remains unresolved. Both sides claim to have been re-elected in 2025, while the Bureau of Indian Affairs recognizes both as chief.

The plaintiffs claim the PokkeTrades announcement has harmed the tribe's business relationships and led to its exclusion from the National Congress of American Indians annual meeting in Palm Springs. They seek an emergency injunction. They also ask that the defendants retract their statements on leadership and recognize Marshall. The complaint includes allegations of fraud, deceptive advertising and civil conspiracy.

Kalshi rejects the claims and says the agreement is valid. Company spokesperson Jacki McGavick said the tribal council approved the partnership and that a signed contract exists. In an earlier case in the Muscogee (Creek) Nation court, the suit was dismissed because the parties did not waive sovereign immunity. In a separate case in Okmulgee County, Yargee was stripped of signing authority over the tribe's bank accounts. Meanwhile, many Native American communities oppose prediction markets, arguing that sports contracts resemble gambling and threaten tribal gaming rights. In September, the 6th U.S. Circuit Court of Appeals ruled that Ohio and Tennessee may apply their own gambling laws to Kalshi's event contracts. The company objects to this approach, arguing that federal financial regulation should prevail.