The Gambling Wire: Kalshi Partners With Four Tribes as Coinbase Exits Michigan

Tribal prediction-market partnerships deepen the divide within the industry. Meanwhile, states pressed the Supreme Court to review prediction markets, and lawmakers widened their scrutiny of betting operators.

Prediction markets dominated another day of gambling industry developments. In the biggest story, Kalshi announced partnerships with four Native American tribes to launch prediction market apps. Meanwhile, Coinbase has agreed to halt sports event contracts in Michigan, and 39 states and Washington, D.C., are urging the Supreme Court to review a ruling favoring Kalshi in New Jersey.

Elsewhere, Sen. Richard Blumenthal plans to expand his gambling VIP inquiry, two sports stars have signed betting-related endorsement deals, and Macquarie forecasts mixed third-quarter results across the gaming industry.

The Big Story: Kalshi Partners With Four Tribes, Deepening Tribal Gaming Divide

Four Native American tribes have partnered with Kalshi to launch prediction-market apps, breaking with many tribal gaming groups that are fighting the company in court over its sports-event contracts.

The Alabama-Quassarte Tribal Town in Oklahoma and three California tribes – Greenville Rancheria, Kletsel Dehe Wintun Nation and Alturas Indian Rancheria – will each own their customer-facing platforms, controlling branding, marketing and customer relationships. Meanwhile, Kalshi will provide the trading infrastructure and liquidity.

The agreements follow Kalshi’s September partnership with Louisiana’s Tunica-Biloxi Tribe. For the participating tribes, the appeal is primarily economic, particularly for those with limited access to traditional casino revenue.

“Geography has kept many tribes from sharing in the prosperity that gaming created,” said Alabama-Quassarte Chief Wilson Yargee. “Prediction markets offer an opportunity to reach beyond those limits and build revenue for our people.”

It’s not the first time the Kletsel Dehe has broken ranks. In August 2025, the tribe announced a partnership with sweepstakes casino operator VGW as California was considering a ban on sweepstakes casinos. The Kletsel Dehe opposed the legislation, which was backed by California tribal organizations, citing economic opportunities for smaller tribes.

The Kletsel Dehe, which does not operate a casino, is now making a similar argument for prediction markets. Eric Wright, CEO of the Kletsel Economic Development Authority, told CNN that revenue could fund essential infrastructure, including drinking water.

The agreements come amid opposition from the Indian Gaming Association and several tribal nations. They argue that sports prediction markets undermine tribal sovereignty and federal gaming law.

In September, the Ninth Circuit ruled that sports-event contracts entered into on tribal lands constitute Class III gaming under the Indian Gaming Regulatory Act. The decision gave a boost to legal challenges against Kalshi’s operations on tribal lands.

The Daily Wire

Coinbase Agrees to Halt Sports Contracts in Michigan

Coinbase has agreed to stop offering new sports-related event contracts to Michigan customers and close existing positions by midnight Eastern Time on Oct. 10. In exchange, Michigan regulators will refrain from taking enforcement action against Coinbase as long as the company complies and while related appeals proceed in the Sixth Circuit.

The agreement follows similar action involving Robinhood and a state-court preliminary injunction against Kalshi.

Coinbase’s legal challenge remains ongoing. Its appeal against an August ruling denying a preliminary injunction is pending before the Sixth Circuit, where it has been stayed alongside related prediction-market litigation.

39 States and Washington, D.C., Back New Jersey’s Supreme Court Challenge

Ohio and 38 other states, along with Washington, D.C., have filed an amicus brief urging the U.S. Supreme Court to review New Jersey’s dispute with Kalshi. The filing argues that the Commodity Exchange Act does not prevent states from enforcing their sports gambling laws against federally regulated prediction markets.

The states point to conflicting appellate rulings. These include a Third Circuit decision favoring Kalshi and subsequent Ninth and Sixth Circuit decisions rejecting the company’s broad pre-emption arguments. They contend that the growing disagreement requires a nationwide resolution.

A separate brief from Stop Predatory Gambling, the Association of American Physicians and Surgeons, and Texans Against Gambling also supports review, raising concerns about consumer harm. Previously, the National Council of Legislators from Gaming States and the Cabazon Band of Cahuilla Indians filed similar briefs.

The Supreme Court has not yet decided whether to hear New Jersey’s case.

Coinbase Challenges Connecticut Ruling in Second Circuit

In another Coinbase development, the company has filed its opening brief in the Second Circuit challenging a Connecticut federal court’s refusal to block state enforcement of its sports-event contracts.

In the Oct. 7 filing, Coinbase repeats arguments familiar from other prediction-market litigation: that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over federally regulated event contracts and pre-empts state gambling laws.

The company also argues that the district court wrongly denied its request for a preliminary injunction. Coinbase disputes the court’s findings regarding irreparable harm and the balance of equities.

Blumenthal Plans to Expand Gambling VIP Scrutiny

Sen. Richard Blumenthal plans to seek information from DraftKings and prediction market operators as part of his ongoing investigation into FanDuel’s treatment of VIP bettors. Speaking to Front Office Sports, Blumenthal said he intends to question DraftKings, Kalshi and Polymarket about their customer practices.

Earlier this week, the senator and two other lawmakers sent another letter to FanDuel. They demanded additional details about personalized videos featuring athletes and celebrities sent to high-value customers. FanDuel previously disclosed that it had sent roughly 30 such videos over two years, but lawmakers say the company has not sufficiently explained its safeguards.

Kalshi told Front Office Sports that it does not take customers’ wins or losses into account, while Polymarket pointed to recently announced responsible trading safeguards.

Anthony Edwards, Ronald Acuña Jr. Sign Gambling Partnerships

Minnesota Timberwolves star Anthony Edwards has signed a multiyear endorsement deal with PrizePicks, becoming the company’s first NBA player brand ambassador. The agreement will feature Edwards in major advertising and social media campaigns and includes collaborations with his media company, Three Fifths Media.

Separately, Atlanta Braves outfielder Ronald Acuña Jr. has signed with Kalshi, becoming the first MLB player to endorse a prediction market platform. A commercial featuring Acuña aired during Wednesday’s Braves-Dodgers playoff game. Previously, Kalshi announced partnership deals with five MLB teams.

The agreements come days after San Antonio Spurs star Victor Wembanyama criticized athletes who promote gambling companies and said he would not accept such sponsorships.

Macquarie Remains Bullish on Gaming Despite Q3 Headwinds

Macquarie expects cautiously optimistic third-quarter earnings commentary from gaming operators, despite sector stocks falling 12% over the past month and 22% over the past quarter.

In its Oct. 7 industry preview, the investment bank lowered several stock price targets. It cited higher interest rates, a stronger dollar, Brazil’s online gambling ban, increased investment in prediction markets and a lower expected sportsbook hold.

For Las Vegas, Macquarie forecasts a combined revenue decline of 3% and an EBITDA decline of 6% for the big three: MGM Resorts, Caesars Entertainment and Wynn Resorts. In Macau, it projects declines of 5% and 12%, respectively, for Las Vegas Sands, Wynn and MGM.

Regional U.S. casino gaming revenue is expected to grow 3%, with potential margin improvement. Meanwhile, Macquarie forecasts online sports betting revenue to rise 6% and online casino revenue by 18%.

Despite the challenges, Macquarie believes the industry remains resilient and sees upcoming earnings as a potential positive catalyst for gaming stocks.

FanDuel Restores Illinois Per-Bet Fee

FanDuel has reinstated its 50-cent charge on qualifying sports wagers in Illinois after suspending the fee in April.

The fee does not apply to parlays of at least $10, straight bets of at least $25 or bets placed using bonus funds.

Illinois introduced a per-wager sportsbook tax in July 2025. The state charges operators 25 cents on their first 20 million annual wagers and 50 cents for each additional wager. FanDuel was the first operator to respond by introducing a per-wager fee. Other sportsbooks followed with either fees or minimum bets. DraftKings charges a similar surcharge of up to 50 cents.

There were legislative efforts earlier this year to eliminate the tax amid reports that wagers had declined sharply since its introduction, but they made little progress in the legislature.

Canada’s Supreme Court Questions Ontario’s International Gambling Plans

The Supreme Court of Canada appeared skeptical of Ontario’s proposal to allow online poker and fantasy sports players to compete against international users during oral arguments on Wednesday.

The case centers on Ontario’s proposed international liquidity pooling system. The proposal would expand its regulated online gambling market beyond the current requirement that participants be located within the province.

Ontario’s Court of Appeal ruled in November 2025 that the model was lawful. However, a coalition of provincial lotteries and governments appealed, arguing that Canada’s Criminal Code permits provinces to conduct and manage gambling only within their borders.

During the hearing, Justice Mahmud Jamal questioned the lower court’s reasoning, while other justices raised concerns about Ontario’s ability to regulate international participants, according to Courthouse News.

Ontario argued that it would continue to control and oversee gambling activities involving its residents, even when they compete against players abroad.

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