New Mexico Tribes Push to Block Kalshi Sports Betting

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Sep 09, 2026, 11:00 am ET

Read Time: 4 minutes

New Mexico Tribes Push to Block Kalshi Sports Betting

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Four New Mexico tribal governments have completed their latest legal push against Kalshi's sports prediction markets. The tribes are asking a federal judge to immediately block Kalshi from operating on tribal lands.

The Mescalero Apache Tribe and the Pueblos of Pojoaque, Sandia and Isleta submitted their final written arguments on Sept. 4. Their filing supports a preliminary injunction against Kalshi while the broader dispute continues.

The case could become an important test for tribal gaming sovereignty. It also adds another challenge to Kalshi's efforts to offer sports event contracts across the US.

New Mexico Tribes Seek Immediate Kalshi Restrictions

The tribal plaintiffs argue that Kalshi's sports contracts effectively provide sports gambling on sovereign tribal land. They claim the platform violates tribal gaming compacts and federal law.

Under existing New Mexico gaming arrangements, sports wagering at tribal casinos is limited to customers aged 21 and older. Kalshi, meanwhile, allows users aged 18 and older to access its sports contracts.

The tribes argue that Kalshi's model therefore conflicts with the established gaming framework. They also say the company threatens revenue that tribal governments use to support public services.

Their latest filing asks U.S. District Judge Margaret Strickland to order Kalshi to stop operating within tribal boundaries. The 19-page filing argues that the plaintiffs satisfy the requirements for a preliminary injunction.

Kalshi Challenges Tribal Authority

Kalshi has rejected the tribes' interpretation of federal gaming law. The company argues that the Commodity Exchange Act takes precedence over the Indian Gaming Regulatory Act and state gaming compacts.

Kalshi also maintains that the Commodity Futures Trading Commission holds exclusive authority over its prediction-market products. The company further warned that a tribal-land restriction could cause significant operational and commercial harm.

That argument reflects Kalshi's broader strategy in its growing legal battles with gambling regulators. The company has repeatedly argued that federal derivatives regulation protects its sports event contracts from state gambling laws.

Still, the New Mexico case presents a different legal question. Rather than focusing only on state gambling authority, the tribes are emphasizing sovereignty and tribal gaming rights.

New Mexico Gambling Debate Gains Another Front

The dispute adds another layer to the wider New Mexico gambling landscape. The state does not currently offer regulated online sports betting, although tribal casinos offer retail sports wagering under their gaming compacts.

New Mexico Attorney General Raúl Torrez has also pursued separate action against Kalshi. His state lawsuit alleges that the company violates state laws and contributes to harmful betting activity.

As a result, Kalshi faces challenges from both tribal governments and state authorities in New Mexico. The cases could shape how prediction markets operate in the state.

The dispute also creates a contrast with traditional US online sportsbooks. Those operators generally operate under state-specific gambling licenses and must follow local betting regulations.

Kalshi instead classifies its sports products as federally regulated event contracts. That distinction remains central to the company's legal defense.

Ninth Circuit Decision Adds Pressure

The New Mexico tribes are also pointing to a recent federal appeals court ruling. On Aug. 28, the Ninth Circuit upheld a decision allowing Nevada regulators to block Kalshi's sports-event trades.

The ruling could strengthen the tribes' argument that federal regulation does not automatically prevent local authorities from restricting Kalshi's sports markets.

Other courts have reached different conclusions, though. The Third Circuit previously upheld a preliminary injunction protecting Kalshi from New Jersey's sports gambling laws.

New Jersey has since asked the U.S. Supreme Court to review that decision. Meanwhile, Kalshi has faced additional challenges in states including Michigan and Tennessee.

Judge's Decision Could Have Wider Impact

Judge Strickland's eventual ruling could have consequences beyond New Mexico. A preliminary injunction would force Kalshi to prevent its sports contracts from operating within affected tribal boundaries.

For now, the New Mexico tribes have completed their arguments and await the court's decision. Federal court records do not currently specify when Strickland will rule on the preliminary injunction.

The outcome could therefore become another significant development in the national battle over prediction markets, sports betting and tribal sovereignty.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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