The Wisconsin tribe claims the prediction market platform violates federal gaming laws and tribal sovereignty.
Event contracts are drawing criticism from both the financial industry and the gambling sector.
Robinhood, source: Shutterstock
Kalshi and
Robinhood Markets were hit with a federal lawsuit this week from the Ho-Chunk
Nation, a federally recognized tribal nation in Wisconsin that operates
multiple gaming facilities under a state compact allowing sports betting on
tribal lands.
The
plaintiffs’ main objection seems to be that the gambling takes place not in
their casinos, but on smartphones.
Lawsuit Against Kalshi Over
Sports Betting on Tribal Lands
The 47-page
complaint, filed in the Western District of Wisconsin, accuses Kalshi
of disguising sports betting as "event contracts"
that allow users to buy "yes" or "no"
positions on sporting event outcomes. The Wisconsin-based tribe
argues this violates the Indian Gaming Regulatory Act, which
gives tribes exclusive authority to regulate gaming on their lands.
Kalshi
markets itself as a regulated derivatives exchange where users can
trade on real-world events, from sports outcomes to political
elections. The platform has gained attention for
allowing 18-year-olds to place what the tribe calls "bets"
on everything from NFL games to March Madness
basketball tournaments.
"Currently,
18-year-old high school students across the United States, including some that
are located on Indian reservations, are on their phones placing bets
on the outcome of virtually every sporting event occurring across the
globe," the complaint states.
Source: Court Documents
While it is
clear that the tribes are concerned about someone taking a share of their
profitable business, they may be right about one thing: event contracts are
largely sports bets. This
is evident even in the latest offering from CME Group, which this week
partnered with the online gaming company FanDuel, a provider of sports betting.
Event Contracts: Gamble or
Not?
The lawsuit
centers on whether
Kalshi's sports event contracts constitute gambling
under federal law. While Kalshi describes its offerings as
regulated commodities contracts overseen by the Commodity Futures
Trading Commission (CFTC), the Ho-Chunk Nation argues these are
simply sports wagers disguised with financial terminology.
The tribe
points to Kalshi's own marketing materials as evidence,
citing Instagram posts where the company promoted itself as
"The First Nationwide Legal Sports Betting
Platform" and advertised "Sports Betting Legal in all
50 States on Kalshi."
Wisconsin
law restricts sports betting to tribal casinos operating under
state compacts. The Ho-Chunk Nation operates three gaming
facilities and claims Kalshi's platform directly competes with
its regulated sportsbooks by allowing people to bet from
home instead of visiting tribal casinos.
Robinhood Also Hit
The
complaint also targets Robinhood, which partnered with Kalshi
in March to offer a "prediction markets hub" on its
investment platform. During March
Madness alone, Kalshi reported over $320 million in trading volume on
tournament-related contracts.
The timing
of Kalshi's expansion into sports markets has raised eyebrows.
The company filed to offer sports event contracts in January, just days
after Donald Trump Jr. announced he was joining Kalshi as a
strategic advisor. Trump's nominee to chair the CFTC, Brian
Quintenz, currently serves on Kalshi's board and owns stock in the
company.
The
Ho-Chunk Nation's case follows
similar litigation from three California tribes who sued Kalshi
and Robinhood earlier this year. These tribal nations argue that
unregulated online gambling undermines their exclusive gaming rights
and diverts revenue that funds tribal government services.
Kalshi and
Robinhood Markets were hit with a federal lawsuit this week from the Ho-Chunk
Nation, a federally recognized tribal nation in Wisconsin that operates
multiple gaming facilities under a state compact allowing sports betting on
tribal lands.
The
plaintiffs’ main objection seems to be that the gambling takes place not in
their casinos, but on smartphones.
Lawsuit Against Kalshi Over
Sports Betting on Tribal Lands
The 47-page
complaint, filed in the Western District of Wisconsin, accuses Kalshi
of disguising sports betting as "event contracts"
that allow users to buy "yes" or "no"
positions on sporting event outcomes. The Wisconsin-based tribe
argues this violates the Indian Gaming Regulatory Act, which
gives tribes exclusive authority to regulate gaming on their lands.
Kalshi
markets itself as a regulated derivatives exchange where users can
trade on real-world events, from sports outcomes to political
elections. The platform has gained attention for
allowing 18-year-olds to place what the tribe calls "bets"
on everything from NFL games to March Madness
basketball tournaments.
"Currently,
18-year-old high school students across the United States, including some that
are located on Indian reservations, are on their phones placing bets
on the outcome of virtually every sporting event occurring across the
globe," the complaint states.
Source: Court Documents
While it is
clear that the tribes are concerned about someone taking a share of their
profitable business, they may be right about one thing: event contracts are
largely sports bets. This
is evident even in the latest offering from CME Group, which this week
partnered with the online gaming company FanDuel, a provider of sports betting.
Event Contracts: Gamble or
Not?
The lawsuit
centers on whether
Kalshi's sports event contracts constitute gambling
under federal law. While Kalshi describes its offerings as
regulated commodities contracts overseen by the Commodity Futures
Trading Commission (CFTC), the Ho-Chunk Nation argues these are
simply sports wagers disguised with financial terminology.
The tribe
points to Kalshi's own marketing materials as evidence,
citing Instagram posts where the company promoted itself as
"The First Nationwide Legal Sports Betting
Platform" and advertised "Sports Betting Legal in all
50 States on Kalshi."
Wisconsin
law restricts sports betting to tribal casinos operating under
state compacts. The Ho-Chunk Nation operates three gaming
facilities and claims Kalshi's platform directly competes with
its regulated sportsbooks by allowing people to bet from
home instead of visiting tribal casinos.
Robinhood Also Hit
The
complaint also targets Robinhood, which partnered with Kalshi
in March to offer a "prediction markets hub" on its
investment platform. During March
Madness alone, Kalshi reported over $320 million in trading volume on
tournament-related contracts.
The timing
of Kalshi's expansion into sports markets has raised eyebrows.
The company filed to offer sports event contracts in January, just days
after Donald Trump Jr. announced he was joining Kalshi as a
strategic advisor. Trump's nominee to chair the CFTC, Brian
Quintenz, currently serves on Kalshi's board and owns stock in the
company.
The
Ho-Chunk Nation's case follows
similar litigation from three California tribes who sued Kalshi
and Robinhood earlier this year. These tribal nations argue that
unregulated online gambling undermines their exclusive gaming rights
and diverts revenue that funds tribal government services.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
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Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
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In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
