Kalshi Wins Legal Battle Against California Tribes, Continues to Offer Sports Event Contracts
Kalshi, a US-based prediction market platform, has successfully defended itself against a legal challenge from three California tribes, allowing the company to continue offering contracts for sporting events on tribal lands. The lawsuit, filed by the Blue Lake Rancheria, the Me Wuk Indians’ Chicken Ranch Rancheria, and the Chukchansi Indians’ Picayune Rancheria, alleged that Kalshi’s contracts constituted illegal gambling under the Indian Gambling Regulatory Act.
The tribes argued that Kalshi’s marketing statements misrepresented the legality of sports betting, but U.S. District Judge Jacqueline Scott Corley denied their motion, stating that they had not demonstrated a likelihood of success on the merits of their claims. This decision enables KalshiEX LLC, a subsidiary of Kalshi, to continue offering and promoting sporting event contracts on tribal lands for the time being. According to a report by Bloomberg Law, the ruling is a significant victory for Kalshi, which has faced regulatory challenges in multiple states.
Kalshi’s Ongoing Legal Battles and Growing VC Support
In addition to the California lawsuit, Kalshi is also facing legal pressure in New York, where state regulators have issued a cease-and-desist order, arguing that the company’s sports event contracts amount to unlicensed gambling. In response, Kalshi has filed a federal lawsuit to block enforcement, claiming that its markets fall under federal CFTC supervision rather than state gambling law. Despite these regulatory challenges, investors continue to support Kalshi’s platform, with the company recently raising $300 million in a funding round led by Andreessen Horowitz and Sequoia Capital.
Kalshi’s valuation is currently estimated to be between $10 billion and $12 billion, signaling strong VC confidence in its long-term growth. The company’s ability to attract significant venture capital despite ongoing legal battles is a testament to its innovative approach to prediction markets and its potential for disruption in the sports betting industry. As the company continues to navigate regulatory challenges, its commitment to transparency and compliance will be crucial in maintaining the trust of its users and investors. For more information, visit the original article on Crypto News.
