The Tunica-Biloxi Tribe of Louisiana is entering the rapidly expanding prediction-market industry through a new app powered by Kalshi, making it one of the Native American tribes to embrace the business model, The New York Times reports.
The central Louisiana tribe, which has about 1,600 members and operates the Paragon casino and resort, plans to offer customers contracts tied to real-world events, with Kalshi providing the underlying market infrastructure and the two companies splitting revenue. The venture comes as Kalshi and other prediction-market companies face legal challenges from nearly two dozen states, which argue that event contracts amount to gambling and circumvent state laws and tax obligations.
Kalshi maintains that its products are federally regulated derivatives rather than traditional gambling. Native American tribes have taken differing approaches to the industry. A federal appeals court recently blocked Kalshi from offering contracts on the lands of two California tribes that had not authorized prediction markets, while representatives from 17 tribes raised concerns with the Commodity Futures Trading Commission, or CFTC, about potential impacts on tribal sovereignty and gaming operations.
Tunica-Biloxi Chair Marshall Pierite says the partnership represents an opportunity for tribal economic development and could serve as a model for tribes without major casino operations. A recent CFTC decision allowing apps to facilitate trading in regulated derivatives helped clear the way for the venture. Pierite says he began researching prediction markets eight to nine months ago and pursued a meeting with Kalshi through a mutual friend.
The New York Times has the full story.
