Tribal Leaders Bet on Prediction Markets in Growing Gaming Divide

A growing number of Native American tribes are turning to a controversial financial platform to launch their own gambling-style apps, breaking away from traditional casino groups. Three California tribes and one Oklahoma tribe announced plans to team up with Kalshi, a prediction market exchange, to create branded apps where users can bet on real-world events like sports, award shows, and even the weather.

Each tribe will run its own app and manage customer interactions, while Kalshi handles the back-end trading system. Kalshi's CEO said this setup helps tribes grow economically without clashing with their values. But tribal gaming leaders are pushing back hard, calling the deals risky and misleading.

The Indian Gaming Association, which supports most tribal casinos, has sued Kalshi, saying the company is stealing revenue from Native-run gambling halls. They warn that smaller tribes with fewer options might be getting tricked into backing products that could hurt their legal fights later on.

At a major gaming conference in Las Vegas, tensions flared when Kalshi reps met with tribal leaders in a hotel suite. One tribal official accused the company of sending a low-level worker to recruit new partners and urged other tribes to skip the meetings. Kalshi confirmed the gatherings were official networking events and said they also hosted other gaming and finance companies.

The first tribe to join Kalshi was the Tunica-Biloxi Tribe of Louisiana last month, which caught gaming leaders off guard. Since prediction markets exploded in popularity after the 2024 election, more tribes have shown interest. Talks between Kalshi and the Indian Gaming Association fell apart earlier this year, ending with a sharp threat: "See you in court."

Among the new partners are the Greenville Rancheria, Alturas Indian Rancheria, and the Kletsel Dehe Wintun Nation, all located in remote parts of California. Only one of them, Alturas, currently runs a casino. A small Oklahoma tribe, the Alabama-Quasarrte Tribal Town, said the deal lets them reach new audiences and earn money despite being far from big cities.