California Tribe Drops From Lawsuit Against Kalshi

• The Picayune Rancheria of the Chukchansi Indians recently withdrew from its California lawsuit against Kalshi
• The tribe withdrew from the lawsuit and an ongoing appeal with the U.S. Court of Appeals for the Ninth Circuit
• Two tribes still remain in both the lawsuit and appeal

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A California tribe is ending its legal fight against prediction market operator Kalshi.

The U.S. District Court of Northern District of California recently approved a joint stipulation for the dismissal of the Picayune Rancheria of the Chukchansi Indians from its lawsuit and ongoing appeal against Kalshi.

The Picayune Rancheria of the Chukchansi Indians, Blue Lake Rancheria, and Chicken Ranch Rancheria of Me-Wuk Indians filed a lawsuit for injunctive relief and fiscal damages against Kalshi in July 2025, alleging the prediction market company engaged in illegal gaming on tribal land.

Two Tribes Remain in Lawsuit

While the Picayune Rancheria of the Chukchansi Indians removed itself from the lawsuit, Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians still remain.

The tribes filed their lawsuit on July 22, 2025, against Kalshi in U.S. District Court of Northern District of California seeking a preliminary and permanent injunction against the prediction market operator to prevent them “from engaging in illegal sports gambling on the tribes’ respective reservations in direct violation of the Indian Gaming Regulatory Act.”

The lawsuit contends that both Kalshi and Robinhood’s conduct in California is unlawful class III gaming activity in violation of 18 U.S.C. § 1166, which governs illegal gambling in Indian country, and is therefore subject to injunctive relief under the Indian Gaming Regulatory Act (IGRA).

Judge Jacqueline Scott Corley denied the tribal motion for a preliminary injunction in November 2025, which prompted the tribes to appeal the court’s decision with the 9th Circuit Court of Appeals. A three-judge panel for the circuit court held a hearing on July 10 and listened to arguments from Kalshi and the tribes, including the Picayune Rancheria of the Chukchansi Indians.

The appeals court did not provide a final decision after the hearing and gave no timeline for a ruling.

However, the legal battle is now only backed by the Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians The Picayune Rancheria of the Chukchansi Indians withdrew from the lawsuit shortly after the three-judge panel for the appeal court’s hearing.

A spokesperson for Kalshi told Sports Betting Dime it’s “good to see” the tribe dropped its appeal.

“It’s good to see the Picayune Rancheria of the Chukchansi Indians has dropped its appeal. Kalshi is regulated by the CFTC and operates under federal law. We’re very open to working with tribes where our interests align,” Jacki McGavick, Kalshi spokesperson, told Sports Betting Dime.

No Reason Provided For Withdrawal

The court documents for the withdrawal did not provide a reason for the tribe’s decision. An email sent to the tribe’s legal counsel by Sports Betting Dime for comment on its decision was not returned.

Daniel Wallach, a gaming law attorney, Founder of Wallach Legal and UNHLaw Sports Wagering, described the decision as “unusual” in a post on the social media platform X.

The Picayune Rancheria of the Chukchansi Indians have withdrawn from the California tribal lawsuit against Kalshi and the related 9th Circuit appeal. (h/t @MickBransfield). Reasons for the unusual post-argument dismissal not disclosed. Two other CA tribes remain as plaintiffs. pic.twitter.com/42hOGyEI1y

— Daniel Wallach (@WALLACHLEGAL) August 13, 2026