In Cabazon , the U.S. Supreme Court recognized that “federal interests in Indian self- government, including the goal of encouraging tribal self-sufficiency and economic development, are important,” and that tribal gaming has provided “the sole source of revenues for the operation of the tribal governments and are the major sources of employment for tribal members.” 480 U.S. at 203. Following this decision, Congress declared that “a principal goal of Federal Indian policy is to promote tribal economic development, tribal self-sufficiency, and strong tribal government,” and “Indian tribes have the exclusive right to regulate gaming activity on Indian lands if the gaming activity is not specifically prohibited by Federal law and is conducted within a State which does not, as a matter of criminal law and public policy, prohibit such gaming activity.” 25 U.S.C. §§ 2701(4), (5) (emphasis added). By offering its sports event contracts, Kalshi tramples upon established federal Indian policy by claiming that the CEA preempts the rights of tribes to regulate gaming on Indian land and siphons vital governmental revenue from tribes. Kalshi’s intrusion is particularly dangerous because it evades gaming regulations and government oversight that would protect consumers, ensure fairness, or mitigate negative gaming impacts. As noted above, Kalshi not only violates IGRA, but strikes at the heart of tribal sovereignty by offering unregulated nationwide online sports betting. Kalshi usurps the rights of tribes to regulate gaming within their borders and undermines the sovereign right of tribes to negotiate Class III gaming compacts with states. By using backdoor means to offer nationwide online sports betting, Kalshi diminishes tribal bargaining power in compact negotiations and diminishes the value of tribes’ bargained-for benefits and exclusivity. Finally, Kalshi is siphoning revenue from tribal governments in defiance of federal Indian policy. IGRA requires all revenues from tribal gaming be used for governmental or
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