(2) located in a state that permits such gaming; and (3) conducted in accordance with a tribal- state gaming compact. 25 U.S.C. § 2710(d)(1). This regulatory regime occupies the entire field of gaming on Indian lands. See Tamiami Partners, Ltd. v. Miccosukee Tribe of Indians , 63 F.3d 1030, 1033 (11th Cir. 1995) (IGRA was “intended to expressly preempt the field in the governance of gaming activities on Indian lands” (quoting S. Rep. No. 100-446, at 6 (Aug. 3, 1988))); Gaming Corp. of Am. v. Dorsey & Whitney , 88 F.3d 536, 547 (8th Cir. 1996). IGRA’s implementing regulations define “Class III Gaming” to expressly include sports betting. 2 25 C.F.R. § 502.4(c). While the term “sports betting” is not defined within IGRA or its implementing regulations, it is generally understood to mean: [T]he staking or risking by any person of something of value upon the outcome of . . . a sporting event . . . upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome. 31 U.S.C. § 5362(1)(A) (defining “bet or wager” under the Unlawful Internet Gambling Enforcement Act (“UIGEA”)) (emphasis added). This is precisely what Kalshi is offering: contracts that stake or risk something of value upon the outcome of a sporting event based on the understanding that the person will receive something of value based on that outcome. Kalshi has even repeatedly referred to its own sports event contracts as “bets” or “sports betting.” 3 Kalshi’s sports event contracts therefore clearly constitute sports betting and are thus Class III gaming. 2 See Letter from Kevin K. Washburn, General Counsel for NIGC, to Joseph M. Speck, Nic-A- Bob Productions, re: WIN Sports Betting Game (Mar. 13, 2001), available at https://www.nigc.gov/images/uploads/game-opinions/WIN%20Sports%20Betting%20Game- Class%20III.pdf (“Because sports betting does not fit into any of the specifically defined categories of Class II gaming set forth above, it is a Class III form of gaming.”). 3 See Dustin Gouker, Ten Times Kalshi Said People Could Bet On Things , Event Horizon (Apr. 3, 2025), available at https://nexteventhorizon.substack.com/p/ten-times-kalshi-said-people- could.
3
Made with FlippingBook - Online catalogs