Case 1:25-cv-08846-AT Document 60-1 Filed 12/03/25 Page 25 of 31
IGRA’s implementing regulations define “Class III Gaming” to expressly include “sports betting.” 12 25 C.F.R. § 502.4(c). The term “sports betting” 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 UIGEA). Specifically regarding what “sports betting” means under IGRA, the Department of the Interior has affirmatively approved tribal-state gaming compacts that define “sports betting” to include exactly the type of betting that Kalshi offers. 13 Kalshi very clearly offers sports betting: 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 does not deny this, and in fact advertises its products specifically as “sports betting.” 14 Instead, Kalshi maintains the CFTC has exclusive 12 In its regulations, the NIGC defined “class III gaming” to include “ sports betting .” 25 C.F.R. § 502.4(c) (first published at 57 Fed. Reg. 12,392 (April 9, 1992)) (emphasis added). 13 See, e.g. , 2024 Amendments to the Lac du Flambeau Band of Lake Superior Chippewa Indians and State of Wisconsin Gaming Compact of 1992, Part IV.A.12 (Mar. 29, 2024) (defining “event wagering” as “accepting wagers on the outcomes of, and occurrences within, sports and non- sports games, competitions, and matches”); Agreement Between the Mohegan Tribe of Indians of Connecticut and the State of Connecticut, Section 1(nn) (Sept. 10, 2021) (defining “sports wagering” as “risking or accepting any money … or other thing of value for gain contingent in whole or in part, (A) by any system or method of wagering, … and (B) based on (1) a live sporting event or a portion or portions of a live sporting event, including future or propositional events during such an event, or (2) the individual performance statistics of an athlete or athletes in a sporting event or a combination of sporting events”). 14 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.
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