Three pueblos in New Mexico, along with one tribe, have initiated legal proceedings against the prediction market platform Kalshi. They claim that the company is enabling unlawful sports betting on tribal lands, violating both federal regulations and tribal gaming agreements.
The lawsuit, revealed on Wednesday by the Mescalero Apache Tribe and the Pojoaque, Sandia, and Isleta pueblos, asserts that Kalshi permits users as young as 18 to place sports wagers in New Mexico. This practice threatens the revenue generated by tribal gaming, which is crucial for funding schools and essential government services, according to Source NM.
Sandia Pueblo Governor Stuart Paisano expressed concern in a statement, stating, “The use of prediction markets for gambling purposes diverts essential revenue away from our governments, provides an end-run around regulation of gaming on our lands, and allows gaming by underage people.” Under the existing tribal gaming compacts and federal law in New Mexico, gambling is restricted to individuals aged 21 and older.
The lawsuit, filed by a law firm based in Washington, contends that Kalshi, headquartered in New York, has not implemented geofencing technology that would prevent access to its platform within tribal jurisdictions. The complaint alleges that Kalshi's operations infringe upon the federal Indian Gaming Regulatory Act and violate tribal sovereignty rights upheld by the U.S. Supreme Court in 1987.
As part of the evidence, the lawsuit includes a screenshot that shows New Mexico users making trades on Kalshi during a men’s basketball game featuring the University of New Mexico Lobos against New Mexico State University last November.
This legal action is the latest development in the ongoing efforts by New Mexico tribes to combat prediction market platforms that provide sports-related contracts.
Recently, U.S. Representative Gabe Vasquez from New Mexico visited a school located on Isleta Pueblo land, which heavily relies on tribal gaming revenue. During this visit, Isleta Pueblo Governor Eugene Jiron cautioned about the significant long-term effects of prediction markets functioning as unofficial sports betting platforms. Vasquez mentioned that he is working on legislation to prevent companies like Kalshi and Polymarket from offering sports betting services.
Tribal leaders have previously voiced their concerns regarding these platforms. In July, Duane Duffy, Vice President of the Mescalero Apache Tribe, called on state lawmakers to take action against prediction markets. In his statement on Wednesday, Duffy emphasized that tribes in New Mexico have fought vigorously to safeguard their inherent sovereign right to manage and regulate casinos on tribal lands. “We cannot sit by idly as the laws that enshrine this right are ignored,” he added.
The lawsuit in New Mexico follows a similar legal challenge by the Ho-Chunk Nation in Wisconsin, which filed a lawsuit against Kalshi last August, alleging that the company was unlawfully offering sports betting on tribal land.
Earlier this week, a federal judge denied the tribe's request for an emergency order to halt Kalshi's operations in Wisconsin but acknowledged that the tribe has shown a “likelihood of success” in pursuing claims under federal Indian gaming law.
According to the latest data from the New Mexico Gaming Control Board, 14 tribes and pueblos in the state generated over $266 million in adjusted net gaming revenue during the last quarter of 2025. This figure includes revenue from gaming machines after payouts and regulatory fees, although the state does not specify how much of this revenue was derived from sports betting.