The Ho-Chunk Nation is reworking its federal lawsuit against prediction market company Kalshi, shifting the case away from a general attack on sports wagering and toward a more focused dispute over tribal gaming law and advertising claims.
In a filing submitted May 22 in the U.S. District Court for the Western District of Wisconsin and seen by ReadWrite, the tribe asked a judge for permission to amend its complaint after part of the original case was dismissed earlier this month. The revised complaint centers on the Indian Gaming Regulatory Act, or IGRA, which the tribe says provides clear legal authority showing Kalshi falsely promotes nationwide legal sports betting.
The case has become one of several major legal fights surrounding prediction markets and sports-related event contracts. Kalshi has argued its products are regulated under federal commodities law through the Commodity Futures Trading Commission, while tribes and state regulators contend the offerings closely resemble sports gambling.
Ho-Chunk Nation re-focuses legal dispute against Kalshi to tribal gaming law
Earlier this month, the court dismissed the Ho-Chunk Nation’s original Lanham Act claim, ruling the tribe had not identified sufficiently definitive legal guidance proving Kalshi’s statements about legality were false. The judge noted courts around the country have issued conflicting decisions involving prediction markets and state gambling restrictions.
The tribe now argues IGRA resolves that uncertainty. According to the proposed amended complaint, class III gaming, including sports betting, is only lawful on tribal lands when it is authorized by tribal ordinance, conducted in a state permitting that activity, and governed through a tribal-state compact.
The filing says Kalshi already unsuccessfully challenged that interpretation during earlier proceedings. The tribe pointed to prior court rulings rejecting Kalshi’s arguments that IGRA does not apply to its conduct, that federal commodities law independently authorizes its activity, and that the Commodity Exchange Act overrides tribal gaming authority.
The Ho-Chunk Nation also claims Kalshi’s marketing language creates confusion because the company advertises “Sports Betting” and “Sports Gaming” while separately describing itself as a derivatives exchange handling event contracts.
According to the filing, Kalshi presents itself as “a New York-based DCM” operating “events contracts” through market makers that “bolster liquidity.” The tribe argues consumers might respond differently if those services were marketed strictly with financial trading terminology instead of sports betting language.
The revised complaint alleges Kalshi’s advertising “misrepresents the nature of Kalshi’s platform and offerings in violation of the Lanham Act.”
The Wisconsin lawsuit is unfolding alongside related actions in Arizona and other states, where regulators, tribal gaming operators, and federal agencies are increasingly clashing over prediction market oversight. The CFTC has separately pursued legal action tied to state-level efforts targeting event contracts, while Kalshi continues seeking dismissal of tribal claims challenging its business model.
Kalshi also recently asked the Wisconsin court to pause its deadline to answer the complaint while the judge considers the amendment request.
Featured image: Kalshi / Ho-Chunk Nation
The post Ho-Chunk Nation narrows Kalshi lawsuit in Wisconsin around tribal gaming law appeared first on ReadWrite.
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