Tribal authorities in the United States supported a statewide ban on prediction markets operating in Connecticut, citing regulatory concerns and economic harm.

Regulatory actions

The state regulator has ordered Kalshi, Crypto.com and Robinhood to stop offering sports-betting products on Connecticut territory pending review. Kalshi is challenging the order in court, arguing its instruments are derivatives overseen by the CFTC, not gambling.

Tribal position and legal basis

The Mohegan and Mashantucket Pequot tribes invoked the Indian Gaming Regulatory Act of 1988, asserting exclusive tribal authority to regulate gaming on reservation lands. They contend prediction markets compete directly with tribal casinos and cause measurable economic damage.

Arguments and implications

Tribal leaders argue that platforms have no legal right to operate on reservation territory and that unresolved status of prediction markets undermines tribal revenue streams. The dispute frames prediction markets as a contested form of wagering in relation to tribal gaming operations.

Broader context

Similar legal and regulatory conflicts over prediction-market operations have appeared in other U.S. states, creating a patchwork of enforcement and litigation risks for platforms. The outcome in Connecticut may influence regulatory approaches elsewhere.