Kalshi files opposition to tribal legal action in Maryland
The predictions market platform argued that the filing by the tribe is not useful or helpful at this current time.
Key points:
– Kalshi has filed a request for the United States District Court of Maryland to deny a amicus brief filing by a group of US tribal operators
– Kalshi emphasised that it will comply with other litigation, but deems this filing “untimely and unhelpful”
– The request comes amid continued legal issues for Kalshi in the US
Kalshi has filed an opposition to an amicus brief filing by Native American tribal organisations in the United States District Court of Maryland, in the latest update to the prediction market platform’s legal battles in the US.
Court documents state that an amicus brief “at the trial level… should not be granted unless the court deems the proffered information timely and useful,” with Kalshi arguing that the filing by the tribes does not meet this brief. Kalshi went on to say that, while it wishes to accommodate the parties interested in litigation against it, and consents to such a brief being filed as part of another pending case (namely, the Third Circuit appeal), “this putative amicus brief is untimely and unhelpful.”
The decision by the tribes aligns with comments made by several tribal leaders that services such as Kalshi breach tribal sovereignty or the compacts made with their state’s gaming regulators.
Some have suggested operators and tribes work with predictor platforms – DraftKings CEO Jason Robins and CFO Alan Ellingson said in their sportsbook’s Q1 earnings call that predictors are “going to continue being a powerful lever that this is happening whether you want it to or not. So do you want to do it in a way that makes sense – if you’re a Californian tribe, or if you’re a state that hasn’t legalised it yet – that allows you to prosper, or do you want to watch it happen somewhere else?”
Good to know: Kalshi’s Sara Slane appeared on the Huddle recently, discussing all things prediction markets
However, state regulators have for the most part been attempting to ban Kalshi, with cease-and-desists being placed by regulators including New Jersey, Nevada, Ohio and more.
Indeed, in April, Kalshi filed a temporary restraining order and preliminary injunction against the Maryland Lottery and Gaming Control Commission (MLGCC), after the regulator filed a cease-and-desist order against Kalshi.
Kalshi argued that such a cease-and-desist “unconstitutionally threatens to prohibit trading of Plaintiff KalshiEX LLC’s (Kalshi) sports-event contracts in Maryland.” The initial cease-and-desist argued that “Kalshi is operating in Maryland and is offering and conducting what is, in fact, wagering on sporting events,” despite not holding a sports wagering licence.
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