Kalshi is knee-deep in an ongoing battle between prediction markets and tribal nations. They recently landed a partnership with the Tunica-Biloxi Tribe of Louisiana, and now they’re getting more reinforcements.
After establishing a positive relationship with the Tunica-Biloxi tribe, Kalshi furthered its plight to win the battle against the tribal gaming industry. The prediction market platform recently signed on the dotted line with the Alabama Quassarte Tribal Town in Oklahoma, as well as three additional tribes in California.
Four Native American Tribes Strike Deal with Kalshi
Kalshi officially announced their four new tribal nation deals on October 7th, stating they had agreed to partnerships with the following tribes:
- Alabama-Quassarte Town (Oklahoma)
- Greenville Rancheria (California)
- Kletsel Dehe-Wintun Nation (California)
- Alturas Indian Rancheria (California)
These deals give Kalshi five deals with tribal nations, spread out over three different states. The Oklahoma deal in particular is interesting, as the state’s leaders have been vocal about their disapproval of prediction markets operating outside of gambling regulation.
The reported structure of these Kalshi tribal nation partnerships allows the tribes to keep control over branding, marketing, and customer relationships. However, the deals do grant all five tribes access to Kalshi’s federally regulated exchange.
This is a boost for tribes who don’t currently have extensive access to casino markets, while these deals could go a long way in Kalshi’s bid to further the divide between themselves and sportsbooks.
With tribal leaders being rather loud about their disdain for prediction markets, the more partnerships with tribes Kalshi can secure, the better.
Prediction Markets Offer Tribes Economic Boost
These deals make sense for Kalshi, as more positive relations with tribal nations help their case against tribal leaders. They’re also a terrific opportunity for smaller tribes.
Due to traditional casino revenue not necessarily being distributed evenly among all tribes, this type of deal can help certain tribes gain access to digital platforms and reach more customers.
The Alabama-Quassarte Tribal Town has suffered due to its location, limiting its participation ability in casino gaming. This Kalshi deal gives the tribe a clearer path to economic development in a similar genre.
Each of these four tribes have established their own unique platform: PokkeTrades, Sovereign Edge, Greenville, and AIR Markets. The goal is to be able to brand themselves and insert themselves into major markets, while benefiting from Kalshi’s offerings.
Tribal Gaming Opposition Continues to Be a Roadblock
While Kalshi’s tribal nation partnerships are good for both the prediction market platform and the involved tribes, its business being done against the wishes of the tribal gaming industry.
Naturally, tribal leaders aren’t exactly jumping for joy over this deal. Most of the prominent tribal gaming organizations contest that the prediction market industry is just sports betting masked as a trading exchange.
They argue that prediction market event contracts should be treated like sports wagers, and as such, they should be federally regulated and follow online sports betting laws.
Prediction markets, however, maintain that their event contracts fall under the federal commodities regulation. They’re also backed by the CFTC and are federally approved, while these platforms have stated specific differences that they feel separate prediction markets from sportsbooks.
The Trade Handle Prediction Markets Take
It’s unclear just how much these deals move the needle for Kalshi in their war against the tribal gaming industry. But every new tribe they land a pact with arguably gets them closer to a resolution that favors them.
As for the tribes, this is a big win for the smaller entities. The ability to operate digital platforms without having actual casinos is part of the appeal. On top of that, these deals could generate more paths to economic growth for participating tribes.
Overall, these tribal nation partnerships signal growth, provide an encouraging signal for Kalshi’s fight against tribal gaming, and also reflect general economic opportunities beyond traditional gambling.