Native American Tribes Claim Kalshi Prediction Markets 'Siphon' Money From Casinos

Core Viewpoint - The Connecticut Indian tribes have expressed concerns that Kalshi, a prediction market operator, is diverting funds from their casinos through its business practices, leading to legal actions and regulatory scrutiny [1][2]. Group 1: Legal Actions and Regulatory Environment - Kalshi filed a lawsuit against the Connecticut Department of Consumer Protection in December 2025, claiming the regulator threatened it with criminal and civil penalties for offering event contracts [1]. - Connecticut's regulatory authority issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com, demanding they stop offering unlicensed online gambling services to state residents [1]. - The Indian Gaming Association and 16 federally recognized tribes submitted an amicus brief, arguing that Kalshi is operating without permission on tribal lands and undermining their gaming revenues [2]. Group 2: Industry Growth and Valuation - The prediction market industry has experienced significant growth, reaching a notional volume of $6 billion in the past week, as reported by Dune Analytics [4]. - Kalshi's valuation surged to $11 billion following a $1 billion funding round in 2025, while its competitor Polymarket's valuation rose to $9 billion after a $2 billion investment from Intercontinental Exchange [4][3].