Not all Tribal nations are at war with Kalshi. Per reports, the prediction market platform is joining forces with the Tunica-Biloxi Tribe of Louisiana, making them the first sovereign Tribal nation to launch its own prediction market app.
Despite the rising prediction market platform taking heat from Tribal nations, Kalshi is helping to power SaltTrade Derivatives. The deal gives the Tribe its own brand and a customer-facing product backed by a prediction market powerhouse.
Tunica-Biloxi Launches SaltTrade Derivatives with Kalshi
The deal between Kalshi and the Tunica-Biloxi Tribe gives the Tribe its own enterprise with the backing of the leading prediction market’s federally regulated exchange infrastructure.
Per the deal, the two companies will share revenue, with trades on SaltTrade Derivatives connecting to Kalshi’s exchange platform.
This is the first known Tribal prediction markets deal that has had pen put to paper, but the fact that it is happening now could give way to more deals in the future.
Tribal Prediction Market Deal Comes at Interesting Time
As noted, this Kalshi Tribal contract comes at an opportune time. Tribal nations have been very public in their stand against prediction markets, with Indian Gaming Association Chairman David Z. Bean suggesting it’ll only get more uncomfortable from here.
Bean recently labeled prediction markets as an “existential threat” to what Tribal nations are trying to accomplish with their approved gambling institutions.
While Bean has been a noteworthy voice of reason in the heated prediction market legality debate, he’s not alone. Not long before this Kalshi partnership was announced, the Ninth Circuit granted two California tribes injunctions that would prevent Kalshi from offering sports event contracts in their territories.
The logic is sound. Tribal nations have gambling jurisdictions and abide by state gambling laws, while Kalshi claims to not be sports betting or gambling at all. With Kalshi not abiding by the same definition or laws, it’s able to cover ground Tribal nations simply cannot.
Could More Tribes Reach Prediction Market App Deals?
This may just be the tip of the iceberg. While the battle grounds of the Tribal nations vs. prediction markets are being established, Kalshi unveiled a power play that suggests the ice may be starting to thin.
It could crack even further from here, as this deal with the Tunica-Biloxi Tribe offers a model for future Tribal nations to follow, should they be interested.
Rather than compete with prediction markets, Tribal nations could opt to cash in on their surging popularity and partner with them. This changes the optics of the previously binary prediction markets vs. Tribal gaming debate, especially if more partnerships start getting announced with increased frequency.
The Trade Handle Prediction Markets Take
This is a huge win for Kalshi. Not only do prediction markets expand their overall reach and get more powerful with every partnership they land, but this one specifically deals a blow to Tribes trying to stand in the way.
They could quickly face an unfortunate dilemma; risk losing favor with a rising and possibly inevitable prediction market industry, or get in while the getting is good.
Tunica-Biloxi’s Kalshi deal doesn’t put an end to the ongoing issues surrounding prediction markets and Tribal gaming. However, it does demonstrate that some Tribal nations are being more proactive about their earning potential, as well as protecting their future.
If this slowly becomes a more accepted approach, Kalshi could continue to grow stronger, with regulatory and legality resistance slipping away as a byproduct.