Kalshi and Robinhood have taken steps to move against the California Tribes’ lawsuit, with many of the arguments relating to the preliminary-injunction proceedings.
Andrew Kim, the attorney and litigator for Washington D.C.-based firm Goodwin Procter, set out the latest developments in the ongoing case, with the prediction market providers bringing separate motions to dismiss the entire lawsuit.
The wider situation stems from a federal case launched in July this year, in the U.S. District Court in California.
It was brought by representatives of three fully recognized Californian tribes: the Blue Lake Rancheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians.
Kalshi and Robinhood have moved to dismiss the CA Tribes' lawsuit. Many of the arguments overlap with the arguments presented as part of the preliminary-injunction proceedings; however, these motions address the tribal ordinance/sovereignty claims and RICO claims as well.
— Andrew Kim (@akhoya87) November 2, 2025
All three entities have existing business operations under the Indian Gaming Regulatory Act (IGRA), providing licensed casinos and sportsbook offerings within the Golden State.
In the lawsuit, the plaintiffs have asserted that Kalshi and Robinhood (the defendants) are in violation of several laws and agreements, including the IGRA, because their sports event contracts equate to illegal sportsbook gambling.
As detailed here, the California Tribes’ lawsuit aims to prevent gambling on tribal land, rather than the entirety of California.
If successful, the suit will put a potential end to Kalshi and Robinhood’s sports betting. It will also bring an injunction on Kalshi, which is currently perceived as unregulated gambling, something that the tribes are serious about combating.
Response from Kalshi and Robinhood to dismiss the lawsuit
In recent days, Kalshi and Robinhood have returned the serve with separate motions to have the full lawsuit dismissed, with the filings directly tackling the core issues brought by the tribes.
The defendants have stated their offerings are not “gaming” under the IGRA, nor are they a tribe or acting in a way that contravenes the IGRA. Kalshi has also outlined federal CFTC oversight, which they say takes precedence over tribal jurisdiction.
The response also addresses RICO claims by denying that any wire fraud exists, as they are lawful under federal derivatives legislation.
The recent motions presented by Kalshi and Robinhood have a clear overlap with arguments made in the preliminary injunction, but the request to dismiss the entire lawsuit could bring about a conclusion to the case earlier than expected.
In the ongoing battle over federal vs. tribal authority on event contracts and other contests in the digital financial realm, this latest court saga could set a precedent.
No rulings or outcomes are expected to be imminent on the California Tribes’ fight against Kalshi and Robinhood.
Image credit: Kalshi / Robinhood / Canva
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