Ho-Chunk Nation v. Kalshi Inc., 2026 WL 2676018, No. 25-cv-698-wmc
(W.D. Wisc. Sept. 11, 2026)

[Discussing only false advertising aspects; other aspects of
this case, which are about tribal power to regulate Kalshi and its ilk, are
more important, but beyond my expertise. The court is allowing an interlocutory
appeal on those issues.]

The Ho-Chunk Nation argued, among other things, that Kalshi’s
advertisements for “legal” sports betting were false or misleading in violation
of the Lanham Act; the court dismissed the claims because, under the current
state of the law, there was no “clear and unambiguous” authority resolving
whether Kalshi’s sports event contracts are legal. Courts have so far reached
“mixed opinions” as to the legality of Kalshi’s sports event contracts. The Nation
argued that the Indian Gaming Regulatory Act clearly applied on tribal lands,
making Kalshi’s operations clearly illegal and thus reviving the Lanham Act
claims. But the court found IGRA’s statutory language is not as “definitive” or
“unambiguous” as all that. “Not only does that statute not expressly address
multiple, complex questions at issue here, including whether Congress must
authorize federal regulation of gambling before an agency may claim that right,
but to date, the only two courts to have considered the specific question
regarding IGRA and online sports events contracts have reached differing
conclusions.” Thus, even though the Nation showed a likelihood of success on
its IGRA claim, that wasn’t enough for falsity.

Nor was there a false advertising problem with calling
Kalshi’s services “sports betting” or “sports gaming”; that was true, even
though Kalshi changed its business strategy to emphasize its betting as “sports
event contracts” to make its preemption claims.

from Blogger https://tushnet.blogspot.com/2026/10/kalshis-gambling-services-arent-so.html