Kalshi and Robinhood have taken steps to maneuver in opposition to the California Tribes’ lawsuit, with lots of the arguments referring to the preliminary-injunction proceedings.
Andrew Kim, the legal professional and litigator for Washington D.C.-based agency Goodwin Procter, set out the newest developments within the ongoing case, with the prediction market suppliers bringing separate motions to dismiss the complete lawsuit.
The broader scenario stems from a federal case launched in July this 12 months, within the U.S. District Courtroom in California.
It was introduced by representatives of three absolutely acknowledged Californian tribes: the Blue Lake Rancheria, the Rooster Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians.
Kalshi and Robinhood have moved to dismiss the CA Tribes' lawsuit. Most of the arguments overlap with the arguments offered as a part of the preliminary-injunction proceedings; nonetheless, these motions tackle the tribal ordinance/sovereignty claims and RICO claims as nicely.
— Andrew Kim (@akhoya87) November 2, 2025
All three entities have present enterprise operations underneath the Indian Gaming Regulatory Act (IGRA), offering licensed casinos and sportsbook choices throughout the Golden State.
Within the lawsuit, the plaintiffs have asserted that Kalshi and Robinhood (the defendants) are in violation of a number of legal guidelines and agreements, together with the IGRA, as a result of their sports activities occasion contracts equate to unlawful sportsbook playing.
As detailed right here, the California Tribes’ lawsuit goals to stop playing on tribal land, moderately than the whole thing of California.
If profitable, the swimsuit will put a possible finish to Kalshi and Robinhood’s sports activities betting. It is going to additionally convey an injunction on Kalshi, which is presently perceived as unregulated playing, one thing that the tribes are critical about combating.
Response from Kalshi and Robinhood to dismiss the lawsuit
In current days, Kalshi and Robinhood have returned the serve with separate motions to have the total lawsuit dismissed, with the filings straight tackling the core points introduced by the tribes.
The defendants have said their choices aren’t “gaming” underneath the IGRA, nor are they a tribe or appearing in a means that contravenes the IGRA. Kalshi has additionally outlined federal CFTC oversight, which they are saying takes priority over tribal jurisdiction.
The response additionally addresses RICO claims by denying that any wire fraud exists, as they’re lawful underneath federal derivatives laws.
The current motions offered by Kalshi and Robinhood have a transparent overlap with arguments made within the preliminary injunction, however the request to dismiss the complete lawsuit might convey a couple of conclusion to the case sooner than anticipated.
Within the ongoing battle over federal vs. tribal authority on occasion contracts and different contests within the digital monetary realm, this newest courtroom saga might set a precedent.
No rulings or outcomes are anticipated to be imminent on the California Tribes’ struggle in opposition to Kalshi and Robinhood.
Picture credit score: Kalshi / Robinhood / Canva
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