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Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians have secured a preliminary injunction barring Kalshi Inc. and KalshiEX from offering sports contracts on their Indian lands, according to DeFi Rate.
U.S. District Judge Jacqueline Scott Corley granted the relief in the Northern District of California after the Ninth Circuit found the tribes likely to succeed on their claim under the Indian Gaming Regulatory Act (IGRA).
Which Kalshi contracts the injunction covers
The order prohibits contracts referencing sports and other events, including football, basketball, esports, chess and combat sports, on the plaintiff tribes’ Indian lands.
“Kalshi Inc. and KalshiEX are enjoined from offering on the Tribes’ Indian lands any sports contracts,” Corley wrote in language quoted by DeFi Rate.
The restriction is geographically limited to those lands. It is a preliminary injunction rather than a final judgment in the tribes’ lawsuit.
Ninth Circuit ruling supports tribes’ IGRA claim
The injunction follows the Ninth Circuit’s Sept. 16 decision in Blue Lake Rancheria v. Kalshi. The appeals court held that the tribes were likely to succeed on their claim that Kalshi’s contracts constituted unauthorized Class III gaming under IGRA.
The court rejected the argument that the relevant gaming activity occurred only where the exchange operated. It also held that Kalshi did not need to be a signatory to a tribe’s compact or governing procedures to violate restrictions on unauthorized gaming.
Corley had initially denied preliminary relief. The Ninth Circuit reversed in part and returned the case to the district court to consider the remaining injunction factors, while upholding the rejection of the tribes’ separate Lanham Act claim.
The plaintiffs must provide Kalshi with boundary maps of their Indian lands by Nov. 13.
If you or someone you know has a gambling problem, call the California Problem Gambling Helpline at 1-800-GAMBLER (1-800-426-2537), 24/7.
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Source: As reported by DeFi Rate.
