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Three New Mexico pueblos and one tribe have filed a lawsuit against prediction market platform Kalshi, alleging the company is facilitating illegal sports gambling on tribal land in violation of federal law and tribal gaming agreements.
The lawsuit, announced Wednesday by the Mescalero Apache Tribe and the Pojoaque, Sandia, and Isleta pueblos, claims Kalshi allows users as young as 18 to place sports-related wagers in New Mexico, undermining tribal gaming revenues that support schools and essential government services, the Source NM reported.
“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,” Sandia Pueblo Gov. Stuart Paisano said in a statement.
Under New Mexico tribal gaming compacts and federal law, gambling is restricted to individuals 21 and older.
Filed by a Washington-based law firm, the lawsuit argues that New York-based Kalshi failed to implement geofencing technology that could block use of its platform within tribal territories. The complaint alleges the company’s operations violate the federal Indian Gaming Regulatory Act and infringe on tribal sovereignty rights recognized by the U.S. Supreme Court in 1987.
As evidence, the lawsuit includes a screenshot showing New Mexico users placing trades through Kalshi on a University of New Mexico Lobos men’s basketball game against New Mexico State University last November.
The legal action marks the latest escalation in New Mexico tribes’ broader campaign against prediction market platforms offering sports-related contracts.
Last month, U.S. Rep. Gabe Vasquez, D-N.M., visited a school on Isleta Pueblo land that relies heavily on tribal gaming revenue for funding. During the visit, Isleta Pueblo Gov. Eugene Jiron warned of significant long-term impacts from prediction markets operating as de facto sports betting platforms. Vasquez said he is drafting legislation aimed at preventing companies such as Kalshi and Polymarket from offering sports betting services.
Tribal leaders have previously raised concerns about the platforms. In July, Mescalero Apache Tribe Vice President Duane Duffy urged state lawmakers to crack down on prediction markets. In Wednesday’s statement, Duffy said tribes in New Mexico “fought hard to protect their inherent sovereign right to operate and regulate casinos on tribal lands.”
“We cannot sit by idly as the laws that enshrine this right are ignored,” Duffy added.
The New Mexico lawsuit follows similar legal action by the Ho-Chunk Nation in Wisconsin, which sued Kalshi last August over allegations the company was illegally offering sports betting on tribal land.
Earlier this week, a federal judge denied the tribe’s request for an emergency order blocking Kalshi’s operations in Wisconsin but stated the tribe demonstrated a “likelihood of success” in pursuing claims under federal Indian gaming law.
According to the latest figures from the New Mexico Gaming Control Board, 14 tribes and pueblos in the state generated more than $266 million in adjusted net gaming revenue during the final quarter of 2025. The figures include gaming machine revenue after payouts and regulatory fees, though the state does not specify how much revenue came from sports betting.