Tribes Set To File Amicus Brief In Kalshi Vs. New Jersey
New brief from the Indian Gaming Association looks for tribes to sign on ahead of filing deadline
Tribal gaming interests appear to be set to file an amicus brief in the federal court case involving Kalshi and New Jersey.
A draft brief from the Indian Gaming Association posted on Pechanga.net asks for tribes to sign onto the brief by Monday at noon Eastern. Attorneys from four different firms are listed on the brief, which appears to be set for filing on Tuesday. The case — Kalshi vs. Flaherty et al — is currently in the United States Court of Appeals for the Third Circuit.
Tribes have voiced their concerns that sports betting in 50 states usurps tribal sovereignty. The lawsuit was brought by prediction markets platform Kalshi, seeking to stop New Jersey from enforcing a cease-and-desist order for offering illegal sports betting.
Call to action here; draft amicus brief here.
From the post asking for signatures:
Unless acted upon, the number of sports-based event contracts traded on the Derivatives/Futures market is only expected to grow, ushering in growing reason for concern for tribal gaming operators and regulators across the United States. It will be crucial moving forward for Tribal governments to closely follow this matter as it evolves in the CFTC and in the courts.
By allowing these event contracts that are wholly unrelated to commodities, the CFTC risks making public policy decisions that ignore the detrimental impacts from sports betting that every State and Tribal government has a sovereign duty to evaluate.Additionally, every sports event contract that is traded on tribal land or in violation of a Tribal-State compact deprives tribes and states of revenue that our communities rely upon.
And from the draft brief:
The Indian Gaming Regulatory Act (“IGRA”) was enacted to provide a comprehensive federal regulatory framework for Indian gaming, including providing a mechanism for tribes and states to negotiate compacts governing the operation of Class III games, such as sports betting, subject to federal approval. …
KalshiEX LLC’s (“Kalshi”) unlawful and unfair entrance into the gaming market has adversely impacted tribal gaming revenue and the benefit of tribes’ bargained-for compacts. Additionally, by offering its so-called sports event contracts under the guise of commodity trading pursuant to the Commodity Exchange Act (“CEA”), Kalshi impedes tribes’ inherent sovereign right to regulate gaming activity on Indian lands. Contrary to Kalshi’s arguments: (1) the CEA does not govern its gaming-related sports event contracts, (2) such contracts are expressly prohibited by the CEA and Commodity Futures Trading Commission’s (“CFTC”) own regulations, and (3) federal, state, and tribal gaming laws therefore apply to the contracts (including IGRA).
The Event Horizon is cited in the brief as well:
