A coalition of federally recognized tribes and Indian regulatory bodies filed amicus briefs in two federal cases, arguing CFTC preemption would nullify tribal-state gaming compacts and strip tribes of authority to regulate Kalshi and Polymarket on Native land.
A coalition of federally recognized tribes and Indian regulatory bodies filed amicus briefs in two federal cases this month, arguing that allowing Kalshi and the CFTC to override state gaming laws would equally nullify tribal-state gaming compacts and strip tribes of authority to regulate prediction markets on Native land.
The group, calling itself the Tribal Amici, filed a brief opposing Kalshi’s motion for a preliminary injunction in *KalshiEx LLC v. Schuler*, now before the U.S. Court of Appeals for the Sixth Circuit. A separate filing in the Southern District of New York backed the state’s opposition to the CFTC’s own preliminary injunction motion. In both briefs, the coalition argues that a ruling for Kalshi or the CFTC would amount to a “sub silentio reversal of congressional policy and Supreme Court precedent” and would “undermine existing tribal-state gaming compacts and regulatory frameworks.”
What the Tribes Are Protecting
Tribal gaming operates under the Indian Gaming Regulatory Act. Tribes that have signed state gaming compacts have negotiated specific terms including minimum ages, approved game types, and revenue sharing. The coalition argues that if courts accept the CFTC’s preemption claim, prediction market platforms would operate on reservation land under their own private compliance rules, bypassing both state and tribal regulation.
The coalition warns this would “allow prediction markets to divert gaming revenues away from tribal and state governments” and “diminish tribal self-determination.” That revenue funds tribal government services and economic development programs.
Where the Cases Stand
Kalshi is appealing an earlier rejection of its preliminary injunction bid before the Sixth Circuit.
California Attorney General Rob Bonta joined a bipartisan coalition filing a separate amicus brief in the same Sixth Circuit proceeding.
The Tribal Amici filings follow related actions covered here this month. The CFTC sued New Mexico to bar enforcement of state gaming laws against CFTC-registered exchanges, making New Mexico the eighth state to face federal litigation. Polymarket also filed suit against Minnesota over its prediction market ban, the third suit against that state.
Whether CFTC registration gives prediction markets blanket immunity from tribal and state enforcement has not been resolved at the appellate level. The Sixth Circuit consolidation is the nearest checkpoint.