Tribes and states vs. prediction markets?

Tribal officials were recently strenuously advised by prominent gaming attorney Daniel Wallach that state and Indian Country Attorneys General should work together to combat prediction markets from expanding their entry into sports betting.

One day following DraftKings' acquisition of Railbird Technologies and its Railbird Exchange, Daniel Wallach made an appearance on the Indian Gaming Association's webinar. The federal Commodity Futures Trading Commission has given Railbird permission to function as a regulated futures exchange in the United States, including event contracts. In addition to announcing the debut of DraftKings Predictions, a mobile app that will provide regulated financial, culture, and entertainment contracts, Railbird has not yet launched. Other categories, including sports, are expected to be added. The business would apparently be able to enter markets where sports betting is prohibited. Additionally, FanDuel is setting up shop to get into the sports prediction industry.

According to attorney Wallach, four court decisions in Nevada, New Jersey, and Maryland thus far are moving in the states' favor.

According to Wallach, the outcome of a tribal action in San Francisco about a move for a preliminary injunction is anticipated shortly. In a federal lawsuit, three tribes accused Kalshi and Robinhood` of running an illicit sports betting business on their territory.

According to Wallach, Massachusetts is the first state to sue Kalshi, and if it is successful in having the case moved to state court, it will be a "slam-dunk victory," meaning that the whole Commonwealth will be geofenced.

Before the pendulum swung when the tribes got involved, Kalshi amassed quick wins in Nevada and New Jersey. According to Wallach, a strategy is in place where tribal attorneys are filing briefs in prediction-market lawsuits across the nation to help "turn the tide and rack up wins," even in states without tribal casinos. The playing field is level, and Nevada hired one of the nation's top Supreme Court attorneys.

States should sue prediction market providers instead of relying on other states, according to Wallach, since any state can win. There is a misperception, he continued, that states should remain neutral because the matter would be decided by the Supreme Court after being heard by several courts.

Since Texas and Utah forbid gambling, IGA's executive director questioned their involvement in this dispute. According to Wallach, states that have a licensing procedure are more motivated to file lawsuits to safeguard the regulated markets that generate tax income.

The NHL and prediction market operators Kalshi and Polymarket have announced a cooperation agreement, and Kalshi alluded to potential agreements with other sports leagues.

That is unexpected because, according to Wallach, three or four months ago, the NBA and Major League Baseball expressed their concerns about the absence of protections for sports integrity in comment letters they sent in response to a CFTC roundtable. Regulations in the state and tribal systems mandate information exchange, collaboration, and integrity monitoring, but the CFTC has never issued relevant regulations.

In the great majority of states and tribal governments, Wallach criticized prediction markets for providing contracts for sporting events to individuals who are 18 years of age or older rather than the 21-year-old barrier.

“The ages of 18 to 21 are the most at-risk segment for compulsive and problem gambling. Tack onto that the absence of any responsible-gambling protocols and consumer protections,” Wallach was reported to have said. “Talk about the Wild West. This is the Wild East, centralized in New York City and Washington, D.C., without any sports-related protections and responsible-gambling safeguards. What could possibly go wrong? Reputationally for the leagues and online sports betting operators, that could come home to roost very quickly.”

For years, the sports leagues worked hard to avoid any association with gambling. But now the lure of the big money appears to be so great that they are fully immersing themselves in it. It is a perilous path they have chosen.

Source:

“Gaming attorney encourages states and tribes to work together to stop prediction markets” , Buck Wargo, cdcgaming.com, October 22, 2025.