Kalshi Faces Tribal Opposition Over Connecticut Prediction Markets, Valuation Hits $11B

Native American tribes claim Kalshi is diverting casino revenue by offering unlicensed prediction markets in Connecticut, according to an amicus brief filed in a December 2025 lawsuit. The Indian Gaming Association and 16 federally recognized tribes argue the platform violates the Indian Gaming Regulatory Act by operating without tribal consent. Kalshi sued the Connecticut Department of Consumer Protection after receiving cease-and-desist orders alongside Robinhood and Crypto.com, which demanded they halt offering sports event contracts to state residents. The regulator labeled the activities as unlicensed gambling. The amicus brief echoes a July 2025 lawsuit by California tribes—Blue Lake Rancheria, Chicken Ranch Rancheria, and Picayune Rancheria—accusing Kalshi of encroaching on tribal gaming rights. Despite not being formal parties, the tribes urge federal courts to block such platforms from siphoning tribal revenues. Meanwhile, Kalshi’s valuation reached $11 billion following a reported $1 billion funding round. Competitor Polymarket hit $9 billion in value after a strategic investment from Intercontinental Exchange, parent of the NYSE.