Two California Tribes Win Against Kalshi

Federal Judge Jacqueline Scott Corley on Wednesday issued a preliminary injunction barring Kalshi from offering sports event contracts on the lands of the Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians. The ruling followed the Ninth Circuit Court of Appeals' finding that the tribes were likely to succeed in their claim that these contracts count as Class III gaming under IGRA.

The appeals court rejected Kalshi's argument that federal commodities law removes the application of IGRA to sports contracts. The case was sent back to the district court to assess the remaining preliminary injunction criteria. Corley had denied the tribes' request in November 2025, and this new ruling reverses that denial.

The tribes will deliver maps showing their land boundaries to Kalshi by November 13. Kalshi must submit a report within 21 days of the November 4 order describing its compliance steps. The ruling could strengthen the Ho-Chunk Nation case in Wisconsin and the lawsuit filed by four tribes in New Mexico, and it could prompt other tribes to file similar suits.

The CFTC, however, took a step in the opposite direction. The agency asked designated contract markets, including prediction markets offering sports and election contracts, to remove geographic restrictions within the US within 30 days or state that compliance is not possible. Chairman Michael Selig said derivatives markets should operate uniformly nationwide and that geographic restrictions are incompatible with the purposes of the Commodity Exchange Act. This move could conflict with court rulings that impose geographic restrictions on tribal lands in Nevada, Washington, Michigan, and now California.

The report also notes that DraftKings, Penn Entertainment, and Genius Sports announced their third-quarter earnings, and that Massachusetts regulators are examining proxy bets linked to Bill Simmons.