{ "attribution": { "source": "legal.exploreworldai.com", "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca9-25-7504-2026-09-16", "cite_as": "NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca9-25-7504-2026-09-16)", "license": "https://legal.exploreworldai.com/revision", "version": "legal-2026-10-05", "fingerprint": "ewai:se:5aa9a2", "proof": "sha256:c6cfb7dc19bfe096ad4cefcce2f41520c8136c93400f165fa8b20e6b0228186f", "jurisdiction": "se", "lang": "en", "publisher": "NovaCopilot by ExploreWorld Legal", "terms": "https://legal.exploreworldai.com/om" }, "brand_source": "Source: NovaCopilot", "brand": { "product": "NovaCopilot", "platform": "ExploreWorldAI", "infrastructure": "ExploreWorld Legal", "infrastructure_url": "legal.exploreworldai.com", "legal_entity": "Valkiv Ventures AB", "permanent_url": "https://legal.exploreworldai.com/novacopilot", "source": "Source: NovaCopilot", "powered_by": "Powered by NovaCopilot", "license": "https://legal.exploreworldai.com/licensvillkor", "contact": "stig@valkiv.com" }, "item": { "schema_version": "1.0.0", "id": "us:ca9-25-7504-2026-09-16", "jurisdiction": "us", "lang": "en", "brand_source": "Source: NovaCopilot", "brand": { "product": "NovaCopilot", "platform": "ExploreWorldAI", "infrastructure": "ExploreWorld Legal", "infrastructure_url": "legal.exploreworldai.com", "legal_entity": "Valkiv Ventures AB", "permanent_url": "https://legal.exploreworldai.com/novacopilot", "source": "Source: NovaCopilot", "powered_by": "Powered by NovaCopilot", "license": "https://legal.exploreworldai.com/licensvillkor", "contact": "stig@valkiv.com" }, "sections": [ { "title": "FOR PUBLICATION", "paragraphs": [] }, { "title": "UNITED STATES COURT OF APPEALS", "paragraphs": [] }, { "title": "FOR THE NINTH CIRCUIT", "paragraphs": [] }, { "title": "BLUE LAKE RANCHERIA;", "paragraphs": [] }, { "title": "CHICKEN RANCH RANCHERIA", "paragraphs": [ "para_6", "para_7", "para_8" ] }, { "title": "KALSHI, INC.; KALSHIEX, LLC;", "paragraphs": [] }, { "title": "ROBINHOOD MARKETS, INC.;", "paragraphs": [ "para_11", "para_12", "para_13" ] }, { "title": "No. 25-7504", "paragraphs": [ "para_15" ] }, { "title": "3:25-cv-06162-", "paragraphs": [] }, { "title": "JSC", "paragraphs": [] }, { "title": "OPINION", "paragraphs": [] }, { "title": "Appeal from the United States District Court", "paragraphs": [ "para_20" ] }, { "title": "Jacqueline Scott Corley, District Judge, Presiding", "paragraphs": [] }, { "title": "Argued and Submitted July 10, 2026", "paragraphs": [] }, { "title": "San Francisco, California", "paragraphs": [] }, { "title": "Filed September 16, 2026", "paragraphs": [] }, { "title": "Before: Mary H. Murguia, Chief Judge, and M. Margaret", "paragraphs": [ "para_26" ] }, { "title": "Opinion by Judge McKeown", "paragraphs": [ "para_28" ] }, { "title": "SUMMARY*", "paragraphs": [] }, { "title": "Event Contracts / Preliminary Injunction", "paragraphs": [] }, { "title": "The panel affirmed in part and reversed in part the", "paragraphs": [ "para_32", "para_33" ] }, { "title": "Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk", "paragraphs": [] }, { "title": "Indians, in their action under the Indian Gaming Regulatory", "paragraphs": [] }, { "title": "Act (“IGRA”) and the Lanham Act against Kalshi, Inc., and", "paragraphs": [ "para_37" ] }, { "title": "The tribes alleged that Kalshi’s “event contracts,” which", "paragraphs": [ "para_39", "para_40", "para_41", "para_42", "para_43", "para_44" ] }, { "title": "Kalshi for advertising that “Sports Betting [Is] Legal in all", "paragraphs": [] }, { "title": "50 States on Kalshi.”", "paragraphs": [] }, { "title": "Reversing the district court’s denial of a preliminary", "paragraphs": [ "para_48", "para_49", "para_50", "para_51", "para_52", "para_53", "para_54" ] }, { "title": "Indian lands” because the users entered into the contracts", "paragraphs": [ "para_56", "para_57" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 3", "paragraphs": [ "para_59" ] }, { "title": "Kalshi was offering the contracts in violation of the tribes’", "paragraphs": [ "para_61", "para_62", "para_63", "para_64", "para_65", "para_66", "para_67", "para_68" ] }, { "title": "The panel held that IGRA was not displaced by the", "paragraphs": [ "para_70", "para_71", "para_72", "para_73", "para_74", "para_75", "para_76" ] }, { "title": "Commodity Exchange Act (“CEA”), such as Kalshi’s event", "paragraphs": [ "para_78", "para_79", "para_80", "para_81", "para_82" ] }, { "title": "The panel also held that the CEA’s “exclusive”", "paragraphs": [ "para_84", "para_85", "para_86" ] }, { "title": "Commodity Futures Trading Commission jurisdiction over", "paragraphs": [ "para_88", "para_89", "para_90", "para_91" ] }, { "title": "The panel affirmed the district court’s conclusion that a", "paragraphs": [ "para_93", "para_94" ] }, { "title": "Because the panel concluded that the tribes were likely", "paragraphs": [ "para_96", "para_97", "para_98" ] }, { "title": "COUNSEL", "paragraphs": [] }, { "title": "Lester J. Marston (argued), Nicholas Marston, and John", "paragraphs": [] }, { "title": "Bursick, Rapport and Marston, Ukiah, California, for", "paragraphs": [ "para_102", "para_103" ] }, { "title": "Sukiennik, Cravath Swaine & Moore LLP, New York, New", "paragraphs": [] }, { "title": "York; Grant R. Mainland (argued), Davis B. Campbell, and", "paragraphs": [] }, { "title": "Karen Wong, Milbank LLP, New York, New York; William", "paragraphs": [ "para_107" ] }, { "title": "Milbank LLP, Washington, D.C.; Dylan M. Silva and", "paragraphs": [] }, { "title": "Christopher C. Wheeler, Farella Braun & Martel LLP, San", "paragraphs": [] }, { "title": "Francisco, California; Mark R. Conrad, Conrad Metlitzky", "paragraphs": [ "para_111" ] }, { "title": "Lehotsky Cohn LLP, Raleigh, North Carolina; Mithun", "paragraphs": [ "para_113", "para_114", "para_115" ] }, { "title": "Hobbs Straus Dean & Walker LLP, Washington, D.C.;", "paragraphs": [ "para_117", "para_118" ] }, { "title": "Tribal Advocacy Group PLLC, Sedona, Arizona; for Amici", "paragraphs": [] }, { "title": "Curiae Indian Gaming Association, National Congress of", "paragraphs": [] }, { "title": "American Indians, California Nations Indian Gaming", "paragraphs": [] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 5", "paragraphs": [ "para_123" ] }, { "title": "Minnesota Indian Gaming Association, Washington Indian", "paragraphs": [] }, { "title": "Gaming Association, Oklahoma Indian Gaming", "paragraphs": [] }, { "title": "Association, United South and Eastern Tribes Sovereignty", "paragraphs": [] }, { "title": "Protection Fund, Native American Finance Officers", "paragraphs": [ "para_128", "para_129" ] }, { "title": "Kevin F. King, Thomas Brugato, Matthew J. Glover, Scott", "paragraphs": [ "para_131" ] }, { "title": "Washington, D.C., for Amicus Curiae American Gaming", "paragraphs": [ "para_133", "para_134", "para_135" ] }, { "title": "Deputy State Solicitor; Jared Rinehimer, Chief, Privacy &", "paragraphs": [] }, { "title": "Responsible Technology Division; M. Patrick Moore, First", "paragraphs": [ "para_138" ] }, { "title": "Massachusetts Attorney General; Office of the", "paragraphs": [] }, { "title": "Massachusetts Attorney General, Boston, Massachusetts;", "paragraphs": [] }, { "title": "Noel Fischer, Supervising Deputy Attorney General;", "paragraphs": [] }, { "title": "Christine Williams, Senior Assistant Attorney General; Rob", "paragraphs": [] }, { "title": "Bonta, California Attorney General; Office of the California", "paragraphs": [] }, { "title": "Attorney General, Oakland, California;", "paragraphs": [] }, { "title": "Dave Yost, Ohio Attorney General, Office of the Ohio", "paragraphs": [ "para_146" ] }, { "title": "New Jersey Attorney General, Office of the New Jersey", "paragraphs": [ "para_148" ] }, { "title": "Alabama Attorney General, Office of the Alabama Attorney", "paragraphs": [] }, { "title": "General, Montgomery, Alabama; Raúl R. Labrador, Idaho", "paragraphs": [ "para_151", "para_152", "para_153", "para_154", "para_155", "para_156" ] }, { "title": "Indiana; Kristin K. Mayes, Arizona Attorney General, Office", "paragraphs": [ "para_158" ] }, { "title": "Schwalb, District of Columbia Attorney General, Office of", "paragraphs": [ "para_160", "para_161", "para_162" ] }, { "title": "Delaware; Kwame Raoul, Illinois Attorney General, Office", "paragraphs": [ "para_164" ] }, { "title": "Kobach, Kansas Attorney General, Office of the Kansas", "paragraphs": [] }, { "title": "Attorney General, Topeka, Kansas; Liz Murrill, Louisiana", "paragraphs": [ "para_167" ] }, { "title": "Baton Rouge, Louisiana; Anthony G. Brown, Maryland", "paragraphs": [ "para_169" ] }, { "title": "Baltimore, Maryland; Keith Ellison, Minnesota Attorney", "paragraphs": [ "para_171" ] }, { "title": "Minnesota; Brenna Bird, Iowa Attorney General; Office of", "paragraphs": [ "para_173" ] }, { "title": "Tong, Connecticut Attorney General, Office of the", "paragraphs": [] }, { "title": "Connecticut Attorney General, Hartford, Connecticut; Lynn", "paragraphs": [] }, { "title": "Fitch, Mississippi Attorney General, Office of the", "paragraphs": [] }, { "title": "Mississippi Attorney General, Jackson, Mississippi; Raúl", "paragraphs": [] }, { "title": "Torrez, New Mexico Attorney General, Office of the New", "paragraphs": [] }, { "title": "Mexico Attorney General, Santa Fe, New Mexico; Dan", "paragraphs": [] }, { "title": "Rayfield, Oregon Attorney General, Office of the Oregon", "paragraphs": [ "para_181" ] }, { "title": "Vermont Attorney General, Office of the Vermont Attorney", "paragraphs": [] }, { "title": "General, Montpelier, Vermont; Marty Jackley, South Dakota", "paragraphs": [] }, { "title": "Attorney General, Office of the South Dakota Attorney", "paragraphs": [] }, { "title": "General, Pierre, South Dakota; Jeff Jackson, North Carolina", "paragraphs": [] }, { "title": "Attorney General, Office of the North Carolina Attorney", "paragraphs": [] }, { "title": "General, Raleigh, North Carolina; Derek E. Brown, Utah", "paragraphs": [] }, { "title": "Attorney General, Office of the Utah Attorney General, Salt", "paragraphs": [] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 7", "paragraphs": [] }, { "title": "Lake City, Utah; Nicholas W. Brown, Washington Attorney", "paragraphs": [ "para_191" ] }, { "title": "Olympia, Washington; Michael T. Hilgers, Nebraska", "paragraphs": [ "para_193" ] }, { "title": "Lincoln, Nebraska; Aaron D. Ford, Nevada Attorney", "paragraphs": [ "para_195" ] }, { "title": "Nevada; for Amici Curiae Massachusetts, California, 25", "paragraphs": [ "para_197", "para_198" ] }, { "title": "Consovoy McCarthy PLLC, Salt Lake City, Utah, for", "paragraphs": [ "para_200" ] }, { "title": "OPINION", "paragraphs": [] }, { "title": "McKEOWN, Circuit Judge:", "paragraphs": [] }, { "title": "Say you live in California and want to wager whether the", "paragraphs": [ "para_204", "para_205" ] }, { "title": "Instead, you might try to buy an “event contract” keyed to", "paragraphs": [ "para_207", "para_208", "para_209", "para_210" ] }, { "title": "This interlocutory appeal centers on a suit brought by", "paragraphs": [ "para_212" ] }, { "title": "Lake”) and Chicken Ranch Rancheria of Me-Wuk Indians", "paragraphs": [ "para_214" ] }, { "title": "(“Chicken Ranch”) (together, “the Tribes”),1 against Kalshi", "paragraphs": [] }, { "title": "Inc., and KalshiEX LLC, (together, “Kalshi”), and against", "paragraphs": [] }, { "title": "Robinhood Markets, Inc., and Robinhood Derivatives LLC", "paragraphs": [] }, { "title": "(together, “Robinhood”). Kalshi operates a federally", "paragraphs": [ "para_219", "para_220" ] }, { "title": "The contracts challenged here turn on the outcome of", "paragraphs": [ "para_222", "para_223", "para_224", "para_225", "para_226", "para_227", "para_228" ] }, { "title": "(“IGRA”). IGRA allows a tribe to enjoin certain forms of", "paragraphs": [ "para_230", "para_231" ] }, { "title": "Secretary of the Interior that stand in a compact’s place. The", "paragraphs": [ "para_233", "para_234" ] }, { "title": "Kalshi.”", "paragraphs": [] }, { "title": "Reasoning that Kalshi is not bound by any tribal compact", "paragraphs": [ "para_237", "para_238", "para_239" ] }, { "title": "Internet Gambling Enforcement Act (“the UIGEA”) controls", "paragraphs": [] }, { "title": "Kalshi’s conduct; and that the UIGEA does not govern", "paragraphs": [] }, { "title": "Kalshi’s event contracts because those contracts are", "paragraphs": [ "para_243" ] }, { "title": "1 A third tribe, Picayune Rancheria of the Chukchansi Indians, was", "paragraphs": [ "para_245", "para_246" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 9", "paragraphs": [] }, { "title": "The court also rejected the Tribes’ Lanham Act claim", "paragraphs": [ "para_249", "para_250" ] }, { "title": "We reverse the denial of the preliminary injunction", "paragraphs": [ "para_252" ] }, { "title": "Kalshi’s event contracts on tribal lands violate IGRA and the", "paragraphs": [] }, { "title": "Tribes’ gaming ordinances. We affirm the district court’s", "paragraphs": [ "para_255", "para_256", "para_257" ] }, { "title": "Background", "paragraphs": [] }, { "title": "I. IGRA’s Exclusivity Regime", "paragraphs": [] }, { "title": "IGRA provides “a framework for regulating gaming on", "paragraphs": [ "para_261" ] }, { "title": "782, 785 (2014). In so doing, the statute seeks “to strike a", "paragraphs": [ "para_263", "para_264", "para_265" ] }, { "title": "1160 (9th Cir. 2015). That delicate balance ideally results", "paragraphs": [ "para_267", "para_268" ] }, { "title": "IGRA specifically confers upon “Indian tribes ‘the exclusive", "paragraphs": [ "para_270", "para_271", "para_272", "para_273", "para_274", "para_275", "para_276", "para_277" ] }, { "title": "Class I gaming describes “social games solely for prizes of", "paragraphs": [ "para_279", "para_280", "para_281", "para_282", "para_283", "para_284" ] }, { "title": "Class II gaming describes “the game of chance", "paragraphs": [ "para_286", "para_287", "para_288", "para_289", "para_290", "para_291", "para_292", "para_293", "para_294" ] }, { "title": "The term “class III gaming” describes “all forms of", "paragraphs": [ "para_296", "para_297", "para_298", "para_299" ] }, { "title": "Class III gaming is special. At the core of California’s", "paragraphs": [ "para_301", "para_302", "para_303" ] }, { "title": "Norton, 353 F.3d 712, 723 (9th Cir. 2003) (quoting In re", "paragraphs": [] }, { "title": "Indian Gaming Related Cases (“Coyote Valley II”), 331 F.3d", "paragraphs": [] }, { "title": "1094, 1104 (9th Cir. 2003)). IGRA specifically regulates", "paragraphs": [] }, { "title": "Class III gaming “activity,” see e.g., 25 U.S.C", "paragraphs": [ "para_308", "para_309", "para_310" ] }, { "title": "792. We have acknowledged that Class III gaming is", "paragraphs": [] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 11", "paragraphs": [ "para_313", "para_314" ] }, { "title": "Valley II, 331 F.3d at 1097 (citation modified). Small", "paragraphs": [ "para_316", "para_317" ] }, { "title": "Ranch, 42 F.4th at 1032 (citation modified); see also 25", "paragraphs": [] }, { "title": "U.S.C. § 2702(1) (“The purpose of [IGRA] is to provide a", "paragraphs": [ "para_320", "para_321", "para_322", "para_323" ] }, { "title": "Cir. 2007) (“As a result of [its] [c]asino . . . the [San Manuel", "paragraphs": [] }, { "title": "Band of Serrano Mission Indians] can now boast full", "paragraphs": [ "para_326", "para_327", "para_328", "para_329", "para_330", "para_331", "para_332" ] }, { "title": "II. Compacts and Secretarial Procedures Under", "paragraphs": [] }, { "title": "IGRA", "paragraphs": [] }, { "title": "Under IGRA, class III gaming on Indian lands must be", "paragraphs": [ "para_336", "para_337" ] }, { "title": "Secretary of the Interior, id. § 2710(d)(7)(B)(vii). The", "paragraphs": [ "para_339", "para_340", "para_341", "para_342", "para_343", "para_344", "para_345", "para_346", "para_347", "para_348", "para_349", "para_350", "para_351", "para_352", "para_353", "para_354", "para_355", "para_356", "para_357" ] }, { "title": "But Congress was also “clear-eyed that state", "paragraphs": [ "para_359" ] }, { "title": "Ranch, 42 F.4th at 1032. A system in which tribes depend", "paragraphs": [ "para_361", "para_362", "para_363", "para_364" ] }, { "title": "Lake discovered the burdens of that system when their", "paragraphs": [ "para_366" ] }, { "title": "Ranch Rancheria of Me-Wuk Indians v. California, 65 F.4th", "paragraphs": [] }, { "title": "1145, 1147 (9th Cir. 2023). But IGRA does not leave tribes", "paragraphs": [ "para_369", "para_370", "para_371", "para_372" ] }, { "title": "To effectuate this backstop, Congress specifically wrote", "paragraphs": [ "para_374", "para_375", "para_376", "para_377", "para_378", "para_379" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 13", "paragraphs": [ "para_381", "para_382", "para_383" ] }, { "title": "That mediator must then “select from the two proposed", "paragraphs": [ "para_385", "para_386" ] }, { "title": "If the state still does not consent to the compact, the", "paragraphs": [ "para_388", "para_389", "para_390", "para_391", "para_392", "para_393", "para_394", "para_395" ] }, { "title": "Stand Up for California! v. U.S. Dep’t of Interior, 959 F.3d", "paragraphs": [ "para_397" ] }, { "title": "III. The Tribes and Their Gaming Regimes", "paragraphs": [] }, { "title": "Blue Lake is the beneficial owner of the Blue Lake", "paragraphs": [] }, { "title": "Rancheria, which consists of approximately 26 acres of trust", "paragraphs": [ "para_401", "para_402" ] }, { "title": "Chicken Ranch is the beneficial owner of the Chicken Ranch", "paragraphs": [] }, { "title": "Rancheria, which consists of approximately 40 acres of trust", "paragraphs": [ "para_405", "para_406" ] }, { "title": "Both Blue Lake and Chicken Ranch earlier conducted", "paragraphs": [ "para_408" ] }, { "title": "2 The term “rancheria” describes the “numerous small Indian", "paragraphs": [ "para_410", "para_411" ] }, { "title": "Indian use from time to time in the early years of the twentieth century—", "paragraphs": [ "para_413", "para_414", "para_415" ] }, { "title": "F.4th at 1029–30. The compact was set to expire at the end", "paragraphs": [ "para_417", "para_418" ] }, { "title": "California “for years demanded” that the Tribes agree to", "paragraphs": [ "para_420", "para_421", "para_422", "para_423", "para_424" ] }, { "title": "Consistent with IGRA’s remedial process, a court-appointed", "paragraphs": [ "para_426", "para_427" ] }, { "title": "1030. IGRA then required the Secretary of the Interior to", "paragraphs": [ "para_429", "para_430", "para_431", "para_432", "para_433", "para_434", "para_435", "para_436", "para_437" ] }, { "title": "3 See U.S. Dep’t of the Interior, Class III Gaming Secretarial Procedures", "paragraphs": [ "para_439", "para_440", "para_441", "para_442" ] }, { "title": "Interior, Class III Gaming Secretarial Procedures for the Chicken Ranch", "paragraphs": [ "para_444", "para_445", "para_446", "para_447" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 15", "paragraphs": [ "para_449", "para_450" ] }, { "title": "III gaming because no compact or secretarial procedure", "paragraphs": [ "para_452", "para_453" ] }, { "title": "IV. Kalshi and Its Gambit", "paragraphs": [] }, { "title": "KalshiEX LLC is a derivatives exchange licensed by the", "paragraphs": [] }, { "title": "Commodity Futures Trading Commission (“the", "paragraphs": [] }, { "title": "Commission”). The company operates as a designated", "paragraphs": [ "para_458", "para_459", "para_460", "para_461", "para_462", "para_463" ] }, { "title": "A swap is a type of derivative whose execution can depend", "paragraphs": [ "para_465", "para_466", "para_467" ] }, { "title": "7 U.S.C. § 1a(47)(A)(ii). Picking up on the broad statutory", "paragraphs": [ "para_469", "para_470", "para_471", "para_472", "para_473" ] }, { "title": "Robinhood Markets, Inc., owns Robinhood Derivatives", "paragraphs": [] }, { "title": "LLC, a Commission-registered futures commission", "paragraphs": [ "para_476", "para_477", "para_478", "para_479", "para_480", "para_481", "para_482", "para_483", "para_484" ] }, { "title": "Kalshi. The top half shows odds offered for an NFL game", "paragraphs": [ "para_486", "para_487", "para_488" ] }, { "title": "Both use the same format and nearly mirror each other. See", "paragraphs": [] }, { "title": "Ben Blatt & Amy Fan, Is Sports Betting Illegal in Your", "paragraphs": [] }, { "title": "State? Not If You Call It a ‘Prediction Market.’, N.Y. Times", "paragraphs": [] }, { "title": "(Oct. 5, 2025), [https://perma.cc/88XN-W2AX.]", "paragraphs": [] }, { "title": "Users can also create custom parlays, which Kalshi calls", "paragraphs": [ "para_494" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 17", "paragraphs": [] }, { "title": "For example, a person can wager that the San Francisco", "paragraphs": [] }, { "title": "49ers will win by more than 4.5 points, that the game’s", "paragraphs": [ "para_498" ] }, { "title": "Purdy will pass for over 200 yards. Trading data suggests", "paragraphs": [ "para_500", "para_501" ] }, { "title": "Markets Are Coming to Sports in a Big Way, N.Y. Times:", "paragraphs": [ "para_503" ] }, { "title": "To understand the parties’ arguments about the nature of", "paragraphs": [] }, { "title": "Kalshi’s contracts, it is helpful to survey how an entity", "paragraphs": [ "para_506" ] }, { "title": "The Commodity Exchange Act permits entities like", "paragraphs": [] }, { "title": "Kalshi to become DCMs by proving that they can comply", "paragraphs": [ "para_509", "para_510", "para_511", "para_512" ] }, { "title": "U.S.C. § 7a-2(c)(5)(C). All authorized DCMs may either", "paragraphs": [ "para_514" ] }, { "title": "Commission’s preapproval for a given contract. Id. § 7a-", "paragraphs": [] }, { "title": "2(c); 17 C.F.R. § 40.2(a) (self-certification requirements);", "paragraphs": [] }, { "title": "17 C.F.R. § 40.3 (preapproval rules). The Commission can", "paragraphs": [ "para_518", "para_519" ] }, { "title": "2(c)(5)(C)(i)(V). The self-certified contracts go forward", "paragraphs": [ "para_521" ] }, { "title": "The CEA provides the Commission with “exclusive", "paragraphs": [ "para_523", "para_524", "para_525", "para_526", "para_527", "para_528" ] }, { "title": "(Kalshi’s “sports event contracts are likely not swaps under", "paragraphs": [ "para_530", "para_531" ] }, { "title": "F.4th 220, 229 (3d Cir. 2026) (the CEA preempts state", "paragraphs": [ "para_533", "para_534", "para_535", "para_536", "para_537", "para_538", "para_539" ] }, { "title": "Commission’s exclusive jurisdiction is “largely in equipoise", "paragraphs": [ "para_541" ] }, { "title": "Supp. 3d 667, 678 (D. Md. 2025) (the Commission’s", "paragraphs": [ "para_543", "para_544" ] }, { "title": "(S.D.N.Y. July 13, 2026) (assuming without deciding that", "paragraphs": [] }, { "title": "Kalshi’s event contracts are swaps, but holding that the", "paragraphs": [] }, { "title": "Commission’s exclusive jurisdiction over swap transactions", "paragraphs": [ "para_548", "para_549" ] }, { "title": "Kalshi first filed a self-certification to trade sports event", "paragraphs": [ "para_551", "para_552", "para_553", "para_554", "para_555" ] }, { "title": "Comm’n, Kalshi Notification Regarding the Initial Listing", "paragraphs": [ "para_557", "para_558", "para_559" ] }, { "title": "In this court, Kalshi studiously wraps its product in the", "paragraphs": [ "para_561" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 19", "paragraphs": [ "para_563", "para_564" ] }, { "title": "Analysis", "paragraphs": [] }, { "title": "In seeking a preliminary injunction, the Tribes must", "paragraphs": [ "para_567" ] }, { "title": "(2) “[they are] likely to suffer irreparable harm”; (3) “that", "paragraphs": [ "para_569", "para_570" ] }, { "title": "Council, Inc., 555 U.S. 7, 20 (2008). We begin with the", "paragraphs": [ "para_572", "para_573" ] }, { "title": "Enters. v. VidAngel, Inc., 869 F.3d 848, 856 (9th Cir. 2017)", "paragraphs": [ "para_575", "para_576" ] }, { "title": "Reviewing de novo the “underlying issues of law”", "paragraphs": [ "para_578", "para_579" ] }, { "title": "F.4th 918, 927 (9th Cir. 2021) (citation modified), we", "paragraphs": [ "para_581", "para_582" ] }, { "title": "I. The Tribes’ IGRA Claim", "paragraphs": [] }, { "title": "The sports event contracts challenged in this appeal", "paragraphs": [ "para_585" ] }, { "title": "Tribes were required to enact for their secretarially approved", "paragraphs": [ "para_587", "para_588", "para_589", "para_590" ] }, { "title": "The United States district courts shall have", "paragraphs": [ "para_592", "para_593" ] }, { "title": "(ii) any cause of action initiated by a State", "paragraphs": [ "para_595", "para_596", "para_597", "para_598", "para_599" ] }, { "title": "(iii) any cause of action initiated by the", "paragraphs": [] }, { "title": "Secretary to enforce the procedures", "paragraphs": [ "para_602", "para_603" ] }, { "title": "While subsection 2710(d)(7)(A) speaks in jurisdictional", "paragraphs": [ "para_605" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 21", "paragraphs": [ "para_607", "para_608" ] }, { "title": "U.S.C. § 1331, gives a district court subject matter", "paragraphs": [ "para_610" ] }, { "title": "IGRA.” Bay Mills, 572 U.S. at 788 n.2. The issue on which", "paragraphs": [ "para_612" ] }, { "title": "IGRA provides the Tribes with a cause of action against", "paragraphs": [ "para_614" ] }, { "title": "We begin with the established proposition that, once", "paragraphs": [ "para_616", "para_617", "para_618" ] }, { "title": "F.3d 457, 462, 469–70 (2d Cir. 2013) (analyzing secretarial", "paragraphs": [ "para_620" ] }, { "title": "2710(d)(3)(C)(iii)). Although the Secretary is empowered", "paragraphs": [ "para_622", "para_623", "para_624", "para_625", "para_626", "para_627" ] }, { "title": "Interior has a cause of action to enforce secretarial", "paragraphs": [ "para_629" ] }, { "title": "4 Such an interpretation would reward a state that refuses to negotiate", "paragraphs": [ "para_631", "para_632", "para_633", "para_634", "para_635", "para_636", "para_637" ] }, { "title": "2710(d)(7)(A)(ii) thus confers upon tribes a cause of action to enjoin", "paragraphs": [ "para_639", "para_640", "para_641" ] }, { "title": "Secretary an additional enforcement tool. It neither makes", "paragraphs": [ "para_643", "para_644", "para_645" ] }, { "title": "Satisfied that the absence of a compact does not preclude", "paragraphs": [ "para_647", "para_648", "para_649" ] }, { "title": "To demonstrate a likelihood of success on the merits of", "paragraphs": [ "para_651", "para_652", "para_653", "para_654", "para_655", "para_656" ] }, { "title": "A. Kalshi’s Sports Event Contracts Are Class III", "paragraphs": [ "para_658" ] }, { "title": "In our view, the challenged sports event contracts", "paragraphs": [ "para_660", "para_661", "para_662", "para_663" ] }, { "title": "Id. § 2703(8). The National Indian Gaming Commission", "paragraphs": [] }, { "title": "(“NIGC”) 5 regulations implementing IGRA also provide", "paragraphs": [ "para_666", "para_667", "para_668" ] }, { "title": "5 The NIGC is a federal agency that IGRA created within the Department", "paragraphs": [ "para_670", "para_671", "para_672" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 23", "paragraphs": [] }, { "title": "F.4th 960, 975 (9th Cir. 2024) (discussing “sports betting", "paragraphs": [ "para_675" ] }, { "title": "Haaland, 71 F.4th 1059, 1062 (D.C. Cir. 2023) (“Class III", "paragraphs": [ "para_677", "para_678", "para_679", "para_680", "para_681" ] }, { "title": "The analysis is functional. IGRA does not ask whether the", "paragraphs": [ "para_683", "para_684", "para_685", "para_686", "para_687", "para_688" ] }, { "title": "Black’s Law Dictionary (5th ed. 1979) (“An agreement", "paragraphs": [ "para_690", "para_691", "para_692", "para_693", "para_694", "para_695", "para_696", "para_697", "para_698" ] }, { "title": "In practice, what Kalshi labels “sports event contracts”", "paragraphs": [ "para_700", "para_701", "para_702", "para_703" ] }, { "title": "2026 WL 2543846, at *10–11. The user pays consideration", "paragraphs": [ "para_705", "para_706", "para_707", "para_708", "para_709", "para_710" ] }, { "title": "Imagine a user standing on the floor of the Blue Lake", "paragraphs": [] }, { "title": "Casino Hotel who downloads Kalshi and DraftKings, a", "paragraphs": [ "para_713", "para_714" ] }, { "title": "DraftKings, she wagers $100 on the same outcome. The", "paragraphs": [ "para_716", "para_717" ] }, { "title": "Kalshi may reshuffle the cards, but it cannot change the", "paragraphs": [ "para_719", "para_720", "para_721", "para_722", "para_723", "para_724" ] }, { "title": "Santa Ysabel, 898 F.3d 960, 967 (9th Cir. 2018). This is the", "paragraphs": [ "para_726" ] }, { "title": "B. Kalshi’s Sports Event Contracts Are Located", "paragraphs": [ "para_728" ] }, { "title": "Kalshi’s products are also “located on Indian lands”", "paragraphs": [ "para_730", "para_731", "para_732" ] }, { "title": "Indian lands in order to come within its ambit. In", "paragraphs": [ "para_734", "para_735", "para_736", "para_737", "para_738", "para_739" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 25", "paragraphs": [ "para_741" ] }, { "title": "York, and its back-end infrastructure may sit off Indian", "paragraphs": [ "para_743", "para_744" ] }, { "title": "See Bay Mills, 572 U.S. at 792 (class III gaming “is what", "paragraphs": [ "para_746", "para_747", "para_748", "para_749" ] }, { "title": "C. Kalshi’s Sports Event Contracts Violate the", "paragraphs": [ "para_751" ] }, { "title": "The Tribes are likely to succeed on the merits of their", "paragraphs": [] }, { "title": "IGRA claim because they have demonstrated a likelihood", "paragraphs": [ "para_754", "para_755", "para_756", "para_757", "para_758", "para_759", "para_760" ] }, { "title": "6 Our reading is also consistent with IGRA’s implementing regulations", "paragraphs": [ "para_762", "para_763", "para_764", "para_765", "para_766", "para_767", "para_768", "para_769" ] }, { "title": "(gambling using wire transmission is criminal offense unless gambling", "paragraphs": [ "para_771", "para_772", "para_773", "para_774", "para_775" ] }, { "title": "2710(d)(7)(A)(ii) is not a party to a compact or procedure; it", "paragraphs": [ "para_777", "para_778", "para_779", "para_780", "para_781" ] }, { "title": "A nonparty’s violation of a gaming ordinance may", "paragraphs": [ "para_783", "para_784", "para_785", "para_786", "para_787", "para_788", "para_789", "para_790", "para_791", "para_792", "para_793" ] }, { "title": "Our conclusion flows from IGRA, which requires a", "paragraphs": [ "para_795", "para_796", "para_797", "para_798", "para_799", "para_800", "para_801" ] }, { "title": "Chairman approves the ordinance and “publish[es] [it] in the", "paragraphs": [] }, { "title": "Federal Register,” “class III gaming activity on the Indian", "paragraphs": [ "para_804", "para_805", "para_806", "para_807" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 27", "paragraphs": [] }, { "title": "The secretarial procedures of Chicken Ranch and Blue", "paragraphs": [] }, { "title": "Ranch support this conclusion. The procedures exist", "paragraphs": [ "para_811" ] }, { "title": "IGRA directed the Secretary of the Interior to prescribe rules", "paragraphs": [ "para_813" ] }, { "title": "Tribe’s lands. Id. § 2710(d)(7)(B)(vii)(II). The procedures", "paragraphs": [ "para_815", "para_816" ] }, { "title": "Gaming Activities on its Indian lands pursuant to IGRA.”", "paragraphs": [] }, { "title": "They further provide that the “Gaming Operation authorized", "paragraphs": [ "para_819", "para_820" ] }, { "title": "Gaming Activities conducted under th[e] Secretarial", "paragraphs": [] }, { "title": "Procedures shall, at a minimum, comply . . . with a Gaming", "paragraphs": [] }, { "title": "Ordinance duly adopted by the Tribe and approved in", "paragraphs": [ "para_824" ] }, { "title": "The Tribes’ statutorily mandated gaming ordinances", "paragraphs": [ "para_826" ] }, { "title": "Ranch ordinance provides that “[a]ll gaming activities", "paragraphs": [ "para_828", "para_829", "para_830", "para_831", "para_832", "para_833", "para_834", "para_835", "para_836", "para_837", "para_838", "para_839", "para_840", "para_841", "para_842", "para_843", "para_844", "para_845" ] }, { "title": "Tribes a cause of action to enjoin Kalshi’s sports event", "paragraphs": [ "para_847" ] }, { "title": "We reject Kalshi’s argument that the Tribes’", "paragraphs": [ "para_849", "para_850", "para_851", "para_852", "para_853", "para_854", "para_855" ] }, { "title": "(emphasis added). In IGRA, “may” means “may only.” See", "paragraphs": [] }, { "title": "Chicken Ranch, 42 F.4th at 1035. That “limit on negotiation", "paragraphs": [ "para_858", "para_859", "para_860", "para_861", "para_862", "para_863" ] }, { "title": "Kalshi’s argument is ultimately beside the point. Some", "paragraphs": [ "para_865", "para_866", "para_867", "para_868" ] }, { "title": "7 We take judicial notice of both tribal ordinances as public legal", "paragraphs": [ "para_870", "para_871", "para_872" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 29", "paragraphs": [ "para_874", "para_875", "para_876", "para_877" ] }, { "title": "At the heart of Kalshi’s proposed interpretation of IGRA", "paragraphs": [ "para_879", "para_880", "para_881", "para_882", "para_883" ] }, { "title": "(citation modified). Kalshi reads subsection", "paragraphs": [] }, { "title": "2710(d)(7)(A)(ii) as a contract enforcement provision, but", "paragraphs": [] }, { "title": "Congress chose not to limit IGRA actions to breach of", "paragraphs": [ "para_887", "para_888", "para_889", "para_890", "para_891", "para_892", "para_893", "para_894", "para_895" ] }, { "title": "8 Our decision in Cabazon Band of Mission Indians v. Wilson does not", "paragraphs": [ "para_897", "para_898", "para_899" ] }, { "title": "Wilson that the tribes violated their compacts by operating slot machines", "paragraphs": [ "para_901" ] }, { "title": "We rejected that theory because the slot machines were “not mentioned", "paragraphs": [ "para_903" ] }, { "title": "Id. at 1060. That decision addresses a state’s effort to use compact", "paragraphs": [ "para_905", "para_906", "para_907", "para_908", "para_909", "para_910", "para_911", "para_912" ] }, { "title": "717, 728 (10th Cir. 2026) (“Nothing qualifies ‘Indian tribe,’", "paragraphs": [ "para_914", "para_915", "para_916", "para_917" ] }, { "title": "Kalshi’s view would also put IGRA compacts and", "paragraphs": [ "para_919", "para_920", "para_921", "para_922", "para_923" ] }, { "title": "Creek Ditch Co., 304 U.S. 92, 104 (1938). Its provisions are", "paragraphs": [ "para_925" ] }, { "title": "Texas v. New Mexico, 602 U.S. 943, 949–50 (2024) (an", "paragraphs": [ "para_927", "para_928" ] }, { "title": "(citation modified)). The same logic applies to IGRA", "paragraphs": [ "para_930" ] }, { "title": "The upshot is that IGRA does not require that a compact", "paragraphs": [ "para_932", "para_933", "para_934", "para_935", "para_936", "para_937", "para_938", "para_939", "para_940" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 31", "paragraphs": [] }, { "title": "II. IGRA and the UIGEA", "paragraphs": [] }, { "title": "The UIGEA makes it illegal for a “person engaged in the", "paragraphs": [ "para_944", "para_945" ] }, { "title": "Internet gambling.” 31 U.S.C. § 5363. Unlawful internet", "paragraphs": [ "para_947", "para_948", "para_949", "para_950", "para_951", "para_952", "para_953", "para_954", "para_955", "para_956" ] }, { "title": "This carveout frames Kalshi’s main argument, which", "paragraphs": [ "para_958", "para_959" ] }, { "title": "C.F.R. § 38.1, 38.3(a); the UIGEA excludes any transaction", "paragraphs": [ "para_961", "para_962", "para_963", "para_964", "para_965" ] }, { "title": "C[ommission’s] regulation of Kalshi—which is highly", "paragraphs": [ "para_967", "para_968", "para_969" ] }, { "title": "Kalshi.” Taken to its logical conclusion, this carveout would", "paragraphs": [ "para_971", "para_972", "para_973" ] }, { "title": "Kalshi’s argument confers upon the UIGEA a displacing", "paragraphs": [ "para_975", "para_976", "para_977", "para_978", "para_979", "para_980", "para_981", "para_982", "para_983", "para_984" ] }, { "title": "UIGEA definitions are not meant to ‘alter[ ]’ or ‘limit[ ]’", "paragraphs": [ "para_986", "para_987", "para_988", "para_989", "para_990", "para_991" ] }, { "title": "The district court rejected the Tribes’ claim that Section", "paragraphs": [] }, { "title": "5361(b) prevented application of the UIGEA because they", "paragraphs": [ "para_994", "para_995", "para_996", "para_997", "para_998", "para_999", "para_1000" ] }, { "title": "Our decision in California v. Iipay Nation of Santa", "paragraphs": [] }, { "title": "Ysabel supports this conclusion. In that case, a tribe argued", "paragraphs": [ "para_1003", "para_1004", "para_1005", "para_1006" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 33", "paragraphs": [ "para_1008", "para_1009", "para_1010", "para_1011" ] }, { "title": "Kalshi to stake money on a sports outcome, the wagering act", "paragraphs": [ "para_1013", "para_1014" ] }, { "title": "We thus reject the view that “IGRA . . . cover[s] Class", "paragraphs": [] }, { "title": "III gaming activities that take place exclusively within Tribal", "paragraphs": [ "para_1017", "para_1018", "para_1019", "para_1020", "para_1021", "para_1022", "para_1023", "para_1024", "para_1025", "para_1026", "para_1027", "para_1028", "para_1029", "para_1030", "para_1031", "para_1032", "para_1033" ] }, { "title": "III. IGRA and the CEA", "paragraphs": [] }, { "title": "The CEA’s jurisdictional provision states:", "paragraphs": [] }, { "title": "The Commission shall have exclusive", "paragraphs": [ "para_1037", "para_1038", "para_1039", "para_1040", "para_1041", "para_1042", "para_1043", "para_1044", "para_1045", "para_1046" ] }, { "title": "Securities and Exchange Commission or", "paragraphs": [ "para_1048", "para_1049" ] }, { "title": "(II) restrict the Securities and Exchange", "paragraphs": [] }, { "title": "Commission and such other authorities from", "paragraphs": [ "para_1052", "para_1053", "para_1054", "para_1055", "para_1056", "para_1057" ] }, { "title": "We recently held in KalshiEX v. Assad that Kalshi’s", "paragraphs": [ "para_1059" ] }, { "title": "See 2026 WL 2543846 at *15. Because the CEA’s exclusive", "paragraphs": [ "para_1061", "para_1062", "para_1063" ] }, { "title": "U.S.C. § 2(a)(1)(A), Kalshi’s argument that we lack", "paragraphs": [ "para_1065", "para_1066", "para_1067" ] }, { "title": "Raimondo, 603 U.S. 369, 402 (2024) (“Congress expects courts to", "paragraphs": [ "para_1069", "para_1070" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 35", "paragraphs": [] }, { "title": "We note that we would be compelled to reverse even if", "paragraphs": [] }, { "title": "Kalshi’s event contracts were categorized as swaps. In", "paragraphs": [ "para_1074" ] }, { "title": "Supreme Court has explained that this jurisdictional", "paragraphs": [ "para_1076", "para_1077", "para_1078", "para_1079" ] }, { "title": "Pierce, Fenner & Smith, Inc. v. Curran, 456 U.S. 353, 386–", "paragraphs": [] }, { "title": "87 (1982); cf. CFTC v. Schor, 478 U.S. 833, 848–55 (1986)", "paragraphs": [] }, { "title": "(recognizing a waivable “personal right” to an Article III", "paragraphs": [ "para_1083", "para_1084", "para_1085" ] }, { "title": "The jurisdictional provision’s own language confirms", "paragraphs": [ "para_1087", "para_1088", "para_1089", "para_1090", "para_1091", "para_1092" ] }, { "title": "Securities and Exchange Commission” and is best", "paragraphs": [ "para_1094", "para_1095", "para_1096", "para_1097" ] }, { "title": "574 U.S. 528, 545–46 (2015). In this context, the best", "paragraphs": [ "para_1099", "para_1100", "para_1101", "para_1102", "para_1103" ] }, { "title": "Assad, 2026 WL 2543846, at *7, but not jurisdiction", "paragraphs": [ "para_1105" ] }, { "title": "The CEA is also selective as to the application of other", "paragraphs": [ "para_1107", "para_1108", "para_1109" ] }, { "title": "(emphasis added). It does not, however, “supersede or", "paragraphs": [ "para_1111", "para_1112", "para_1113", "para_1114", "para_1115", "para_1116" ] }, { "title": "2543846, at *7. But it did not say clearly that the CEA", "paragraphs": [ "para_1118", "para_1119" ] }, { "title": "Congress has spoken “repeatedly, deliberately, and", "paragraphs": [ "para_1121" ] }, { "title": "Because IGRA and the CEA are not “irreconcilable,” we", "paragraphs": [ "para_1123", "para_1124" ] }, { "title": "In so doing, we conclude that the two statutes simply", "paragraphs": [ "para_1126" ] }, { "title": "Commission “exclusive” jurisdiction over covered", "paragraphs": [ "para_1128", "para_1129" ] }, { "title": "The former statute may determine when a contract can trade", "paragraphs": [ "para_1131", "para_1132" ] }, { "title": "IGRA’s separate requirements. Kalshi’s “exclusive", "paragraphs": [ "para_1134", "para_1135", "para_1136" ] }, { "title": "BLUE LAKE RANCHERIA V. KALSHI, INC. 37", "paragraphs": [ "para_1138", "para_1139" ] }, { "title": "Section 2 of the CEA consolidates federal agency regulation", "paragraphs": [ "para_1141", "para_1142", "para_1143" ] }, { "title": "For example, the fact that market activity is regulated by the", "paragraphs": [] }, { "title": "SEC does not prevent application of the antitrust laws. Even", "paragraphs": [ "para_1146", "para_1147", "para_1148", "para_1149" ] }, { "title": "In short, the CEA may grant the Commission sole sway", "paragraphs": [ "para_1151", "para_1152" ] }, { "title": "IV. The Lanham Act10", "paragraphs": [] }, { "title": "To succeed on their Lanham Act claims, the Tribes must", "paragraphs": [ "para_1155", "para_1156", "para_1157", "para_1158", "para_1159", "para_1160" ] }, { "title": "10 We assume without deciding that the Tribes’ interests “fall within the", "paragraphs": [ "para_1162", "para_1163" ] }, { "title": "Components, Inc., 572 U.S. 118, 129 (2014) (citation omitted); see also", "paragraphs": [] }, { "title": "Vericool World, LLC v. Igloo Prods. Corp., 175 F.4th 1045, 1052 n.2", "paragraphs": [] }, { "title": "(9th Cir. 2026) (the zone of interests inquiry, “sometimes referred to as", "paragraphs": [ "para_1167", "para_1168", "para_1169", "para_1170", "para_1171", "para_1172", "para_1173", "para_1174" ] }, { "title": "Serv., Inc. v. First Am. Title Ins. Co., 173 F.3d 725, 731 (9th", "paragraphs": [] }, { "title": "Cir. 1999). The legality of Kalshi’s products remains", "paragraphs": [ "para_1177" ] }, { "title": "Act claim. See, e.g., Assad, 2026 WL 2543846, at *15;", "paragraphs": [] }, { "title": "Flaherty, 172 F.4th at 229; Schuler, 2026 WL 1295806, at", "paragraphs": [ "para_1180" ] }, { "title": "2017466, at *6–9. We affirm the district court’s refusal to", "paragraphs": [ "para_1182" ] }, { "title": "V. The Remaining Preliminary Injunction Factors", "paragraphs": [] }, { "title": "As we have reiterated time and again, likelihood of", "paragraphs": [ "para_1185", "para_1186" ] }, { "title": "Tribes are likely to prevail on their claims under IGRA, we", "paragraphs": [ "para_1188", "para_1189" ] }, { "title": "Inc. v. Newsom, 50 F.4th 745, 763 (9th Cir. 2022) (en banc)", "paragraphs": [ "para_1191" ] }, { "title": "AFFIRMED in part, REVERSED in part, and", "paragraphs": [] }, { "title": "REMANDED.11", "paragraphs": [ "para_1194", "para_1195" ] } ], "paragraphs": [ { "text": "FOR PUBLICATION", "paragraph_id": "para_1" }, { "text": "UNITED STATES COURT OF APPEALS", "paragraph_id": "para_2" }, { "text": "FOR THE NINTH CIRCUIT", "paragraph_id": "para_3" }, { "text": "BLUE LAKE RANCHERIA;", "paragraph_id": "para_4" }, { "text": "CHICKEN RANCH RANCHERIA", "paragraph_id": "para_5" }, { "text": "OF ME-WUK INDIANS,", "paragraph_id": "para_6" }, { "text": "Plaintiffs - Appellants,", "paragraph_id": "para_7" }, { "text": "v.", "paragraph_id": "para_8" }, { "text": "KALSHI, INC.; KALSHIEX, LLC;", "paragraph_id": "para_9" }, { "text": "ROBINHOOD MARKETS, INC.;", "paragraph_id": "para_10" }, { "text": "ROBINHOOD DERIVATIVES,", "paragraph_id": "para_11" }, { "text": "LLC,", "paragraph_id": "para_12" }, { "text": "Defendants - Appellees.", "paragraph_id": "para_13" }, { "text": "No. 25-7504", "paragraph_id": "para_14" }, { "text": "D.C. No.", "paragraph_id": "para_15" }, { "text": "3:25-cv-06162-", "paragraph_id": "para_16" }, { "text": "JSC", "paragraph_id": "para_17" }, { "text": "OPINION", "paragraph_id": "para_18" }, { "text": "Appeal from the United States District Court", "paragraph_id": "para_19" }, { "text": "for the Northern District of California", "paragraph_id": "para_20" }, { "text": "Jacqueline Scott Corley, District Judge, Presiding", "paragraph_id": "para_21" }, { "text": "Argued and Submitted July 10, 2026", "paragraph_id": "para_22" }, { "text": "San Francisco, California", "paragraph_id": "para_23" }, { "text": "Filed September 16, 2026", "paragraph_id": "para_24" }, { "text": "Before: Mary H. Murguia, Chief Judge, and M. Margaret", "paragraph_id": "para_25" }, { "text": "McKeown and Richard A. Paez, Circuit Judges.", "paragraph_id": "para_26" }, { "text": "Opinion by Judge McKeown", "paragraph_id": "para_27" }, { "text": "2 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_28" }, { "text": "SUMMARY*", "paragraph_id": "para_29" }, { "text": "Event Contracts / Preliminary Injunction", "paragraph_id": "para_30" }, { "text": "The panel affirmed in part and reversed in part the", "paragraph_id": "para_31" }, { "text": "district court’s order denying a motion for a preliminary", "paragraph_id": "para_32" }, { "text": "injunction filed by two federally recognized tribes, Blue", "paragraph_id": "para_33" }, { "text": "Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk", "paragraph_id": "para_34" }, { "text": "Indians, in their action under the Indian Gaming Regulatory", "paragraph_id": "para_35" }, { "text": "Act (“IGRA”) and the Lanham Act against Kalshi, Inc., and", "paragraph_id": "para_36" }, { "text": "other defendants.", "paragraph_id": "para_37" }, { "text": "The tribes alleged that Kalshi’s “event contracts,” which", "paragraph_id": "para_38" }, { "text": "pay out if the designated winner prevails in a sports event,", "paragraph_id": "para_39" }, { "text": "were functionally sports bets, and that Kalshi, by offering", "paragraph_id": "para_40" }, { "text": "these contracts on tribal lands, violated IGRA. IGRA allows", "paragraph_id": "para_41" }, { "text": "a tribe to enjoin certain forms of gaming on Indian lands", "paragraph_id": "para_42" }, { "text": "conducted in violation of a compact between a state and the", "paragraph_id": "para_43" }, { "text": "tribe. The tribes also asserted a Lanham Act claim against", "paragraph_id": "para_44" }, { "text": "Kalshi for advertising that “Sports Betting [Is] Legal in all", "paragraph_id": "para_45" }, { "text": "50 States on Kalshi.”", "paragraph_id": "para_46" }, { "text": "Reversing the district court’s denial of a preliminary", "paragraph_id": "para_47" }, { "text": "injunction in part, the panel held that the tribes were likely", "paragraph_id": "para_48" }, { "text": "to succeed in their claims that Kalshi’s sports event contracts", "paragraph_id": "para_49" }, { "text": "on tribal lands violated IGRA and the tribes’ gaming", "paragraph_id": "para_50" }, { "text": "ordinances. First, the tribes demonstrated that Kalshi’s", "paragraph_id": "para_51" }, { "text": "sports events contracts constituted class III gaming activities", "paragraph_id": "para_52" }, { "text": "under IGRA, 25 U.S.C. § 2710(d)(7)(A)(ii). Second, the", "paragraph_id": "para_53" }, { "text": "tribes demonstrated that the contracts were “located on", "paragraph_id": "para_54" }, { "text": "Indian lands” because the users entered into the contracts", "paragraph_id": "para_55" }, { "text": "* This summary constitutes no part of the opinion of the court. It has", "paragraph_id": "para_56" }, { "text": "been prepared by court staff for the convenience of the reader.", "paragraph_id": "para_57" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 3", "paragraph_id": "para_58" }, { "text": "from tribal territory. Third, the tribes demonstrated that", "paragraph_id": "para_59" }, { "text": "Kalshi was offering the contracts in violation of the tribes’", "paragraph_id": "para_60" }, { "text": "secretarial procedures, which treat class III gaming as lawful", "paragraph_id": "para_61" }, { "text": "only when tribally authorized and conducted through the", "paragraph_id": "para_62" }, { "text": "tribal regulatory structure. Because the secretarial", "paragraph_id": "para_63" }, { "text": "procedures in this case depended on and incorporated the", "paragraph_id": "para_64" }, { "text": "tribes’ ordinances, and Kalshi’s sports event contracts were", "paragraph_id": "para_65" }, { "text": "not authorized by those ordinances, Kalshi’s contracts were", "paragraph_id": "para_66" }, { "text": "also in violation of the compact between the tribes and the", "paragraph_id": "para_67" }, { "text": "State of California.", "paragraph_id": "para_68" }, { "text": "The panel held that IGRA was not displaced by the", "paragraph_id": "para_69" }, { "text": "Unlawful Internet Gambling Enforcement Act (“UIGEA”),", "paragraph_id": "para_70" }, { "text": "which makes it illegal for a person engaged in the business", "paragraph_id": "para_71" }, { "text": "of betting or wagering to knowingly accept financial", "paragraph_id": "para_72" }, { "text": "payments from an individual engaged in unlawful internet", "paragraph_id": "para_73" }, { "text": "gambling. UIGEA carves out from the definition of bet or", "paragraph_id": "para_74" }, { "text": "wager any transaction conducted on or subject to the rules of", "paragraph_id": "para_75" }, { "text": "a registered entity or exempt board of trade under", "paragraph_id": "para_76" }, { "text": "Commodity Exchange Act (“CEA”), such as Kalshi’s event", "paragraph_id": "para_77" }, { "text": "contracts. The panel held that the best reading of the two", "paragraph_id": "para_78" }, { "text": "interrelated statutes is that IGRA provides a cause of action", "paragraph_id": "para_79" }, { "text": "to enjoin class III gaming activities conducted improperly", "paragraph_id": "para_80" }, { "text": "and at least in part on Indian lands, while UIGEA governs", "paragraph_id": "para_81" }, { "text": "payments connected to unlawful internet gambling.", "paragraph_id": "para_82" }, { "text": "The panel also held that the CEA’s “exclusive”", "paragraph_id": "para_83" }, { "text": "jurisdiction did not extend to Kalshi’s sports event", "paragraph_id": "para_84" }, { "text": "contracts. The panel concluded that the CEA and IGRA", "paragraph_id": "para_85" }, { "text": "address two different questions. The CEA gives the", "paragraph_id": "para_86" }, { "text": "Commodity Futures Trading Commission jurisdiction over", "paragraph_id": "para_87" }, { "text": "covered derivatives trading on designated contract markets,", "paragraph_id": "para_88" }, { "text": "while IGRA governs class III gaming activity located on", "paragraph_id": "para_89" }, { "text": "Indian lands.", "paragraph_id": "para_90" }, { "text": "4 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_91" }, { "text": "The panel affirmed the district court’s conclusion that a", "paragraph_id": "para_92" }, { "text": "lay opinion about the contracts’ legality could not support a", "paragraph_id": "para_93" }, { "text": "Lanham Act claim.", "paragraph_id": "para_94" }, { "text": "Because the panel concluded that the tribes were likely", "paragraph_id": "para_95" }, { "text": "to prevail on their claims under IGRA, it remanded as to that", "paragraph_id": "para_96" }, { "text": "claim with instructions to reach the remaining factors for", "paragraph_id": "para_97" }, { "text": "evaluating the tribes’ motion for a preliminary injunction.", "paragraph_id": "para_98" }, { "text": "COUNSEL", "paragraph_id": "para_99" }, { "text": "Lester J. Marston (argued), Nicholas Marston, and John", "paragraph_id": "para_100" }, { "text": "Bursick, Rapport and Marston, Ukiah, California, for", "paragraph_id": "para_101" }, { "text": "Plaintiffs-Appellants.", "paragraph_id": "para_102" }, { "text": "Antony L. Ryan (argued), Kevin J. Orsini, and Brittany L.", "paragraph_id": "para_103" }, { "text": "Sukiennik, Cravath Swaine & Moore LLP, New York, New", "paragraph_id": "para_104" }, { "text": "York; Grant R. Mainland (argued), Davis B. Campbell, and", "paragraph_id": "para_105" }, { "text": "Karen Wong, Milbank LLP, New York, New York; William", "paragraph_id": "para_106" }, { "text": "E. Havemann, Olivia S. Choe, and Joshua B. Sterling,", "paragraph_id": "para_107" }, { "text": "Milbank LLP, Washington, D.C.; Dylan M. Silva and", "paragraph_id": "para_108" }, { "text": "Christopher C. Wheeler, Farella Braun & Martel LLP, San", "paragraph_id": "para_109" }, { "text": "Francisco, California; Mark R. Conrad, Conrad Metlitzky", "paragraph_id": "para_110" }, { "text": "Kane LLP, San Francisco, California; Mark M. Rothrock,", "paragraph_id": "para_111" }, { "text": "Lehotsky Cohn LLP, Raleigh, North Carolina; Mithun", "paragraph_id": "para_112" }, { "text": "Mansinghani, Lehotsky Keller Cohn LLP, Oklahoma City,", "paragraph_id": "para_113" }, { "text": "Oklahoma; for Defendants-Appellees.", "paragraph_id": "para_114" }, { "text": "Joseph H. Webster, Elizabeth A. Bower, and Jens W. Camp,", "paragraph_id": "para_115" }, { "text": "Hobbs Straus Dean & Walker LLP, Washington, D.C.;", "paragraph_id": "para_116" }, { "text": "Michael Hoenig, Yuhaaviatam of San Manuel Nation,", "paragraph_id": "para_117" }, { "text": "Washington, D.C.; Scott Crowell, Crowell Law Office,", "paragraph_id": "para_118" }, { "text": "Tribal Advocacy Group PLLC, Sedona, Arizona; for Amici", "paragraph_id": "para_119" }, { "text": "Curiae Indian Gaming Association, National Congress of", "paragraph_id": "para_120" }, { "text": "American Indians, California Nations Indian Gaming", "paragraph_id": "para_121" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 5", "paragraph_id": "para_122" }, { "text": "Association, Arizona Indian Gaming Association,", "paragraph_id": "para_123" }, { "text": "Minnesota Indian Gaming Association, Washington Indian", "paragraph_id": "para_124" }, { "text": "Gaming Association, Oklahoma Indian Gaming", "paragraph_id": "para_125" }, { "text": "Association, United South and Eastern Tribes Sovereignty", "paragraph_id": "para_126" }, { "text": "Protection Fund, Native American Finance Officers", "paragraph_id": "para_127" }, { "text": "Association, San Manuel Gaming and Hospitality Authority,", "paragraph_id": "para_128" }, { "text": "and 15 Federally Recognized Tribes.", "paragraph_id": "para_129" }, { "text": "Kevin F. King, Thomas Brugato, Matthew J. Glover, Scott", "paragraph_id": "para_130" }, { "text": "Garfing, and Eli Nachmany, Covington & Burling LLP,", "paragraph_id": "para_131" }, { "text": "Washington, D.C., for Amicus Curiae American Gaming", "paragraph_id": "para_132" }, { "text": "Association.", "paragraph_id": "para_133" }, { "text": "Louisa Castrucci, Alda Chan, Frances Cohen, and Joshua R.", "paragraph_id": "para_134" }, { "text": "Edlin, Assistant Attorneys General; Gerard J. Cedrone,", "paragraph_id": "para_135" }, { "text": "Deputy State Solicitor; Jared Rinehimer, Chief, Privacy &", "paragraph_id": "para_136" }, { "text": "Responsible Technology Division; M. Patrick Moore, First", "paragraph_id": "para_137" }, { "text": "Assistant Attorney General; Andrea J. Campbell,", "paragraph_id": "para_138" }, { "text": "Massachusetts Attorney General; Office of the", "paragraph_id": "para_139" }, { "text": "Massachusetts Attorney General, Boston, Massachusetts;", "paragraph_id": "para_140" }, { "text": "Noel Fischer, Supervising Deputy Attorney General;", "paragraph_id": "para_141" }, { "text": "Christine Williams, Senior Assistant Attorney General; Rob", "paragraph_id": "para_142" }, { "text": "Bonta, California Attorney General; Office of the California", "paragraph_id": "para_143" }, { "text": "Attorney General, Oakland, California;", "paragraph_id": "para_144" }, { "text": "Dave Yost, Ohio Attorney General, Office of the Ohio", "paragraph_id": "para_145" }, { "text": "Attorney General, Columbus, Ohio; Matthew J. Platkin,", "paragraph_id": "para_146" }, { "text": "New Jersey Attorney General, Office of the New Jersey", "paragraph_id": "para_147" }, { "text": "Attorney General, Trenton, New Jersey; Steve Marshall,", "paragraph_id": "para_148" }, { "text": "Alabama Attorney General, Office of the Alabama Attorney", "paragraph_id": "para_149" }, { "text": "General, Montgomery, Alabama; Raúl R. Labrador, Idaho", "paragraph_id": "para_150" }, { "text": "Attorney General, Office of the Idaho Attorney General,", "paragraph_id": "para_151" }, { "text": "Boise, Idaho; Tim Griffin, Arkansas Attorney General,", "paragraph_id": "para_152" }, { "text": "Office of the Arkansas Attorney General, Little Rock,", "paragraph_id": "para_153" }, { "text": "Arkansas; Theodore E. Rokita, Indiana Attorney General,", "paragraph_id": "para_154" }, { "text": "6 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_155" }, { "text": "Office of the Indiana Attorney General, Indianapolis,", "paragraph_id": "para_156" }, { "text": "Indiana; Kristin K. Mayes, Arizona Attorney General, Office", "paragraph_id": "para_157" }, { "text": "of the Arizona Attorney General, Phoenix, Arizona; Brian L.", "paragraph_id": "para_158" }, { "text": "Schwalb, District of Columbia Attorney General, Office of", "paragraph_id": "para_159" }, { "text": "the District of Columbia Attorney General, Washington,", "paragraph_id": "para_160" }, { "text": "D.C.; Kathleen Jennings, Delaware Attorney General,", "paragraph_id": "para_161" }, { "text": "Office of the Delaware Attorney General, Wilmington,", "paragraph_id": "para_162" }, { "text": "Delaware; Kwame Raoul, Illinois Attorney General, Office", "paragraph_id": "para_163" }, { "text": "of the Illinois Attorney General, Chicago, Illinois; Kris W.", "paragraph_id": "para_164" }, { "text": "Kobach, Kansas Attorney General, Office of the Kansas", "paragraph_id": "para_165" }, { "text": "Attorney General, Topeka, Kansas; Liz Murrill, Louisiana", "paragraph_id": "para_166" }, { "text": "Attorney General, Office of the Louisiana Attorney General,", "paragraph_id": "para_167" }, { "text": "Baton Rouge, Louisiana; Anthony G. Brown, Maryland", "paragraph_id": "para_168" }, { "text": "Attorney General, Office of the Maryland Attorney General,", "paragraph_id": "para_169" }, { "text": "Baltimore, Maryland; Keith Ellison, Minnesota Attorney", "paragraph_id": "para_170" }, { "text": "General, Office of the Minnesota Attorney General, St. Paul,", "paragraph_id": "para_171" }, { "text": "Minnesota; Brenna Bird, Iowa Attorney General; Office of", "paragraph_id": "para_172" }, { "text": "the Iowa Attorney General, Des Moines, Iowa; William", "paragraph_id": "para_173" }, { "text": "Tong, Connecticut Attorney General, Office of the", "paragraph_id": "para_174" }, { "text": "Connecticut Attorney General, Hartford, Connecticut; Lynn", "paragraph_id": "para_175" }, { "text": "Fitch, Mississippi Attorney General, Office of the", "paragraph_id": "para_176" }, { "text": "Mississippi Attorney General, Jackson, Mississippi; Raúl", "paragraph_id": "para_177" }, { "text": "Torrez, New Mexico Attorney General, Office of the New", "paragraph_id": "para_178" }, { "text": "Mexico Attorney General, Santa Fe, New Mexico; Dan", "paragraph_id": "para_179" }, { "text": "Rayfield, Oregon Attorney General, Office of the Oregon", "paragraph_id": "para_180" }, { "text": "Attorney General, Salem, Oregon; Charity R. Clark,", "paragraph_id": "para_181" }, { "text": "Vermont Attorney General, Office of the Vermont Attorney", "paragraph_id": "para_182" }, { "text": "General, Montpelier, Vermont; Marty Jackley, South Dakota", "paragraph_id": "para_183" }, { "text": "Attorney General, Office of the South Dakota Attorney", "paragraph_id": "para_184" }, { "text": "General, Pierre, South Dakota; Jeff Jackson, North Carolina", "paragraph_id": "para_185" }, { "text": "Attorney General, Office of the North Carolina Attorney", "paragraph_id": "para_186" }, { "text": "General, Raleigh, North Carolina; Derek E. Brown, Utah", "paragraph_id": "para_187" }, { "text": "Attorney General, Office of the Utah Attorney General, Salt", "paragraph_id": "para_188" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 7", "paragraph_id": "para_189" }, { "text": "Lake City, Utah; Nicholas W. Brown, Washington Attorney", "paragraph_id": "para_190" }, { "text": "General, Office of the Washington Attorney General,", "paragraph_id": "para_191" }, { "text": "Olympia, Washington; Michael T. Hilgers, Nebraska", "paragraph_id": "para_192" }, { "text": "Attorney General, Office of the Nebraska Attorney General,", "paragraph_id": "para_193" }, { "text": "Lincoln, Nebraska; Aaron D. Ford, Nevada Attorney", "paragraph_id": "para_194" }, { "text": "General; Office of the Nevada Attorney General, Las Vegas,", "paragraph_id": "para_195" }, { "text": "Nevada; for Amici Curiae Massachusetts, California, 25", "paragraph_id": "para_196" }, { "text": "Other States, and the District of Columbia.", "paragraph_id": "para_197" }, { "text": "Tyler R. Green, Conor D. Woodfin, and Olivia C. Rogers,", "paragraph_id": "para_198" }, { "text": "Consovoy McCarthy PLLC, Salt Lake City, Utah, for", "paragraph_id": "para_199" }, { "text": "Amicus Curiae Paradigm Operations LP.", "paragraph_id": "para_200" }, { "text": "OPINION", "paragraph_id": "para_201" }, { "text": "McKEOWN, Circuit Judge:", "paragraph_id": "para_202" }, { "text": "Say you live in California and want to wager whether the", "paragraph_id": "para_203" }, { "text": "San Francisco Giants will win on Sunday. In California,", "paragraph_id": "para_204" }, { "text": "where sports betting is illegal, you can’t place your bet.", "paragraph_id": "para_205" }, { "text": "Instead, you might try to buy an “event contract” keyed to", "paragraph_id": "para_206" }, { "text": "that outcome in the now burgeoning national prediction", "paragraph_id": "para_207" }, { "text": "markets. We must decide whether that transaction is illegal", "paragraph_id": "para_208" }, { "text": "on tribal land where the state and the tribe have not", "paragraph_id": "para_209" }, { "text": "sanctioned sports betting.", "paragraph_id": "para_210" }, { "text": "This interlocutory appeal centers on a suit brought by", "paragraph_id": "para_211" }, { "text": "two federally recognized tribes, Blue Lake Rancheria (“Blue", "paragraph_id": "para_212" }, { "text": "Lake”) and Chicken Ranch Rancheria of Me-Wuk Indians", "paragraph_id": "para_213" }, { "text": "8 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_214" }, { "text": "(“Chicken Ranch”) (together, “the Tribes”),1 against Kalshi", "paragraph_id": "para_215" }, { "text": "Inc., and KalshiEX LLC, (together, “Kalshi”), and against", "paragraph_id": "para_216" }, { "text": "Robinhood Markets, Inc., and Robinhood Derivatives LLC", "paragraph_id": "para_217" }, { "text": "(together, “Robinhood”). Kalshi operates a federally", "paragraph_id": "para_218" }, { "text": "regulated derivatives exchange, and Robinhood acts as a", "paragraph_id": "para_219" }, { "text": "retail distributor for Kalshi’s products.", "paragraph_id": "para_220" }, { "text": "The contracts challenged here turn on the outcome of", "paragraph_id": "para_221" }, { "text": "sports events. A customer picks one side of a binary", "paragraph_id": "para_222" }, { "text": "outcome. The contract pays out if the designated winner—", "paragraph_id": "para_223" }, { "text": "say, the San Francisco Giants—prevails, and expires", "paragraph_id": "para_224" }, { "text": "worthless if it does not. Kalshi calls the transaction an", "paragraph_id": "para_225" }, { "text": "“event contract.” The Tribes say that these contracts are", "paragraph_id": "para_226" }, { "text": "functionally sports bets and that Kalshi, by offering them on", "paragraph_id": "para_227" }, { "text": "tribal lands, violates the Indian Gaming Regulatory Act", "paragraph_id": "para_228" }, { "text": "(“IGRA”). IGRA allows a tribe to enjoin certain forms of", "paragraph_id": "para_229" }, { "text": "gaming on Indian lands conducted in violation of a compact", "paragraph_id": "para_230" }, { "text": "between the state and the tribe or procedures adopted by the", "paragraph_id": "para_231" }, { "text": "Secretary of the Interior that stand in a compact’s place. The", "paragraph_id": "para_232" }, { "text": "tribes also assert a Lanham Act claim against Kalshi for", "paragraph_id": "para_233" }, { "text": "advertising that “Sports Betting [Is] Legal in all 50 States on", "paragraph_id": "para_234" }, { "text": "Kalshi.”", "paragraph_id": "para_235" }, { "text": "Reasoning that Kalshi is not bound by any tribal compact", "paragraph_id": "para_236" }, { "text": "or procedure, the district court denied the tribes’ preliminary", "paragraph_id": "para_237" }, { "text": "injunction motion. The court reasoned that the challenged", "paragraph_id": "para_238" }, { "text": "transactions do not occur on Indian lands; that the Unlawful", "paragraph_id": "para_239" }, { "text": "Internet Gambling Enforcement Act (“the UIGEA”) controls", "paragraph_id": "para_240" }, { "text": "Kalshi’s conduct; and that the UIGEA does not govern", "paragraph_id": "para_241" }, { "text": "Kalshi’s event contracts because those contracts are", "paragraph_id": "para_242" }, { "text": "regulated by the Commodity Exchange Act (“the CEA”).", "paragraph_id": "para_243" }, { "text": "1 A third tribe, Picayune Rancheria of the Chukchansi Indians, was", "paragraph_id": "para_244" }, { "text": "dismissed without prejudice from this appeal after oral argument,", "paragraph_id": "para_245" }, { "text": "pursuant to a joint stipulation between the parties. Dkt. Nos. 80, 83.", "paragraph_id": "para_246" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 9", "paragraph_id": "para_247" }, { "text": "The court also rejected the Tribes’ Lanham Act claim", "paragraph_id": "para_248" }, { "text": "because it saw Kalshi’s advertisement as a nonactionable", "paragraph_id": "para_249" }, { "text": "opinion about legality.", "paragraph_id": "para_250" }, { "text": "We reverse the denial of the preliminary injunction", "paragraph_id": "para_251" }, { "text": "because the Tribes are likely to succeed in their claims that", "paragraph_id": "para_252" }, { "text": "Kalshi’s event contracts on tribal lands violate IGRA and the", "paragraph_id": "para_253" }, { "text": "Tribes’ gaming ordinances. We affirm the district court’s", "paragraph_id": "para_254" }, { "text": "conclusion that a lay opinion about the contracts’ legality", "paragraph_id": "para_255" }, { "text": "cannot support a Lanham Act claim. We therefore affirm in", "paragraph_id": "para_256" }, { "text": "part, reverse in part, and remand.", "paragraph_id": "para_257" }, { "text": "Background", "paragraph_id": "para_258" }, { "text": "I. IGRA’s Exclusivity Regime", "paragraph_id": "para_259" }, { "text": "IGRA provides “a framework for regulating gaming on", "paragraph_id": "para_260" }, { "text": "Indian lands.” Michigan v. Bay Mills Indian Cmty., 572 U.S.", "paragraph_id": "para_261" }, { "text": "782, 785 (2014). In so doing, the statute seeks “to strike a", "paragraph_id": "para_262" }, { "text": "delicate balance between the sovereignty of states and", "paragraph_id": "para_263" }, { "text": "federally recognized Native American tribes.” Pauma Band", "paragraph_id": "para_264" }, { "text": "of Luiseno Mission Indians v. California, 813 F.3d 1155,", "paragraph_id": "para_265" }, { "text": "1160 (9th Cir. 2015). That delicate balance ideally results", "paragraph_id": "para_266" }, { "text": "from tribes and states negotiating rules about gaming on", "paragraph_id": "para_267" }, { "text": "Indian lands with the imprimatur of the federal government.", "paragraph_id": "para_268" }, { "text": "IGRA specifically confers upon “Indian tribes ‘the exclusive", "paragraph_id": "para_269" }, { "text": "right to regulate gaming activity on Indian lands if the", "paragraph_id": "para_270" }, { "text": "gaming activity is not specifically prohibited by Federal law", "paragraph_id": "para_271" }, { "text": "and is conducted within a State which does not, as a matter", "paragraph_id": "para_272" }, { "text": "of criminal law and public policy, prohibit such gaming.’”", "paragraph_id": "para_273" }, { "text": "Chicken Ranch Rancheria of Me-Wuk Indians v. California,", "paragraph_id": "para_274" }, { "text": "42 F.4th 1024, 1031 (9th Cir. 2022) (quoting 25 U.S.C.", "paragraph_id": "para_275" }, { "text": "§ 2701(5)).", "paragraph_id": "para_276" }, { "text": "As relevant here, IGRA creates three classes of gaming.", "paragraph_id": "para_277" }, { "text": "Class I gaming describes “social games solely for prizes of", "paragraph_id": "para_278" }, { "text": "10 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_279" }, { "text": "minimal value or traditional forms of Indian gaming engaged", "paragraph_id": "para_280" }, { "text": "in by individuals as a part of, or in connection with, tribal", "paragraph_id": "para_281" }, { "text": "ceremonies or celebrations,” 25 U.S.C. § 2703(6), and its", "paragraph_id": "para_282" }, { "text": "regulation remains exclusively within the jurisdiction of the", "paragraph_id": "para_283" }, { "text": "Indian tribes, id. § 2710(a)(1).", "paragraph_id": "para_284" }, { "text": "Class II gaming describes “the game of chance", "paragraph_id": "para_285" }, { "text": "commonly known as bingo” and “card games that . . . are", "paragraph_id": "para_286" }, { "text": "explicitly authorized by [state] law[]” or “not expressly", "paragraph_id": "para_287" }, { "text": "prohibited by” it. Id. § 2703(7)(A). Excluded from Class II", "paragraph_id": "para_288" }, { "text": "gaming are “banking card games” such as “baccarat, chemin", "paragraph_id": "para_289" }, { "text": "de fer, or blackjack” and “electronic or electromechanical", "paragraph_id": "para_290" }, { "text": "facsimiles of any game of chance or slot machines of any", "paragraph_id": "para_291" }, { "text": "kind.” Id. § 2703(7)(B). Regulation of Class II gaming is", "paragraph_id": "para_292" }, { "text": "left within tribal jurisdiction but subject to federal-state", "paragraph_id": "para_293" }, { "text": "regulation as set forth in IGRA. Id. § 2710(a)(2).", "paragraph_id": "para_294" }, { "text": "The term “class III gaming” describes “all forms of", "paragraph_id": "para_295" }, { "text": "gaming that are not class I gaming or class II gaming,” id.", "paragraph_id": "para_296" }, { "text": "§ 2703(8). By way of example, “blackjack, baccarat, slot", "paragraph_id": "para_297" }, { "text": "machines, and parimutuel horse-wagering” are class III", "paragraph_id": "para_298" }, { "text": "games. Chicken Ranch, 42 F.4th at 1031.", "paragraph_id": "para_299" }, { "text": "Class III gaming is special. At the core of California’s", "paragraph_id": "para_300" }, { "text": "compacts with Indian tribes lies “the exclusive right to", "paragraph_id": "para_301" }, { "text": "conduct . . . Las Vegas-style class III gaming, free from non-", "paragraph_id": "para_302" }, { "text": "tribal competition.” Artichoke Joe’s Cal. Grand Casino v.", "paragraph_id": "para_303" }, { "text": "Norton, 353 F.3d 712, 723 (9th Cir. 2003) (quoting In re", "paragraph_id": "para_304" }, { "text": "Indian Gaming Related Cases (“Coyote Valley II”), 331 F.3d", "paragraph_id": "para_305" }, { "text": "1094, 1104 (9th Cir. 2003)). IGRA specifically regulates", "paragraph_id": "para_306" }, { "text": "Class III gaming “activity,” see e.g., 25 U.S.C", "paragraph_id": "para_307" }, { "text": "§ 2710(d)(3)(C)(i) (emphasis added), and the word", "paragraph_id": "para_308" }, { "text": "“activity” “means just what it sounds like—the stuff", "paragraph_id": "para_309" }, { "text": "involved in playing class III games.” Bay Mills, 572 U.S. at", "paragraph_id": "para_310" }, { "text": "792. We have acknowledged that Class III gaming is", "paragraph_id": "para_311" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 11", "paragraph_id": "para_312" }, { "text": "“lucrative,” Artichoke Joe’s, 353 F.3d at 723, and that it", "paragraph_id": "para_313" }, { "text": "provides “a source of substantial revenue” for tribes, Coyote", "paragraph_id": "para_314" }, { "text": "Valley II, 331 F.3d at 1097 (citation modified). Small", "paragraph_id": "para_315" }, { "text": "wonder, then, that class III gaming has become “the", "paragraph_id": "para_316" }, { "text": "lifeblood on which many tribes have come to rely.” Chicken", "paragraph_id": "para_317" }, { "text": "Ranch, 42 F.4th at 1032 (citation modified); see also 25", "paragraph_id": "para_318" }, { "text": "U.S.C. § 2702(1) (“The purpose of [IGRA] is to provide a", "paragraph_id": "para_319" }, { "text": "statutory basis for the operation of gaming by Indian tribes", "paragraph_id": "para_320" }, { "text": "as a means of promoting tribal economic development, self-", "paragraph_id": "para_321" }, { "text": "sufficiency, and strong tribal governments.”); San Manuel", "paragraph_id": "para_322" }, { "text": "Indian Bingo & Casino v. NLRB, 475 F.3d 1306, 1308 (D.C.", "paragraph_id": "para_323" }, { "text": "Cir. 2007) (“As a result of [its] [c]asino . . . the [San Manuel", "paragraph_id": "para_324" }, { "text": "Band of Serrano Mission Indians] can now boast full", "paragraph_id": "para_325" }, { "text": "employment, complete medical coverage for all members,", "paragraph_id": "para_326" }, { "text": "government funding for scholarships, improved housing,", "paragraph_id": "para_327" }, { "text": "and significant infrastructure improvements to the", "paragraph_id": "para_328" }, { "text": "reservation.”). Because the Tribes’ rancherias lie within the", "paragraph_id": "para_329" }, { "text": "geographic boundaries of California, which permits class III", "paragraph_id": "para_330" }, { "text": "gaming, they retain the exclusive authority to regulate class", "paragraph_id": "para_331" }, { "text": "III gaming on their lands subject to IGRA’s requirements.", "paragraph_id": "para_332" }, { "text": "II. Compacts and Secretarial Procedures Under", "paragraph_id": "para_333" }, { "text": "IGRA", "paragraph_id": "para_334" }, { "text": "Under IGRA, class III gaming on Indian lands must be", "paragraph_id": "para_335" }, { "text": "“conducted” pursuant to “a Tribal-State compact,” 25 U.S.C.", "paragraph_id": "para_336" }, { "text": "§ 2710(d)(3)(A)–(B), or “procedures” “prescribe[d]” by the", "paragraph_id": "para_337" }, { "text": "Secretary of the Interior, id. § 2710(d)(7)(B)(vii). The", "paragraph_id": "para_338" }, { "text": "purpose of those instruments is, in part, to “prescribe[] rules", "paragraph_id": "para_339" }, { "text": "for operating gaming.” Bay Mills, 572 U.S. at 785. Class III", "paragraph_id": "para_340" }, { "text": "gaming activities are “lawful on Indian lands only if” they", "paragraph_id": "para_341" }, { "text": "are “authorized by an ordinance or resolution” adopted by", "paragraph_id": "para_342" }, { "text": "the host tribe, “located in a State that permits [class III]", "paragraph_id": "para_343" }, { "text": "gaming,” and “conducted in conformance with a Tribal-State", "paragraph_id": "para_344" }, { "text": "compact.” 25 U.S.C. § 2710(d)(1)(A)–(C) (emphasis", "paragraph_id": "para_345" }, { "text": "12 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_346" }, { "text": "added). Among other things, IGRA permits the compact to", "paragraph_id": "para_347" }, { "text": "“include provisions” that relate to “the application of the", "paragraph_id": "para_348" }, { "text": "criminal and civil laws and regulations of the Indian tribe or", "paragraph_id": "para_349" }, { "text": "the State that are directly related to, and necessary for, the", "paragraph_id": "para_350" }, { "text": "licensing and regulation of [class III gaming] activity,” id.", "paragraph_id": "para_351" }, { "text": "§ 2710(d)(3)(C)(i), and “remedies for breach of contract,”", "paragraph_id": "para_352" }, { "text": "id. § 2710(d)(3)(C)(v). Congress chose compacts as “the", "paragraph_id": "para_353" }, { "text": "best mechanism to assure that the interests of both sovereign", "paragraph_id": "para_354" }, { "text": "entities are met with respect to the regulation of complex", "paragraph_id": "para_355" }, { "text": "gaming enterprises.” Artichoke Joe’s, 353 F.3d at 726", "paragraph_id": "para_356" }, { "text": "(quoting S. Rep. No. 100–446, at 13 (1988)).", "paragraph_id": "para_357" }, { "text": "But Congress was also “clear-eyed that state", "paragraph_id": "para_358" }, { "text": "involvement could turn decidedly uncooperative.” Chicken", "paragraph_id": "para_359" }, { "text": "Ranch, 42 F.4th at 1032. A system in which tribes depend", "paragraph_id": "para_360" }, { "text": "on “state compact approval” could leave gaming—often the", "paragraph_id": "para_361" }, { "text": "keystone of the tribal treasury—“at the potential mercy of", "paragraph_id": "para_362" }, { "text": "the states, which could withhold approval . . . or insist upon", "paragraph_id": "para_363" }, { "text": "onerous compact conditions.” Id. Chicken Ranch and Blue", "paragraph_id": "para_364" }, { "text": "Lake discovered the burdens of that system when their", "paragraph_id": "para_365" }, { "text": "compact negotiations with California failed. See Chicken", "paragraph_id": "para_366" }, { "text": "Ranch Rancheria of Me-Wuk Indians v. California, 65 F.4th", "paragraph_id": "para_367" }, { "text": "1145, 1147 (9th Cir. 2023). But IGRA does not leave tribes", "paragraph_id": "para_368" }, { "text": "without recourse in such a situation. Congress required", "paragraph_id": "para_369" }, { "text": "states to “negotiate . . . in good faith,” 25 U.S.C.", "paragraph_id": "para_370" }, { "text": "§ 2710(d)(3)(A), and built a meaningful backstop against", "paragraph_id": "para_371" }, { "text": "interminable negotiations.", "paragraph_id": "para_372" }, { "text": "To effectuate this backstop, Congress specifically wrote", "paragraph_id": "para_373" }, { "text": "into IGRA a series of remedial provisions, which take effect", "paragraph_id": "para_374" }, { "text": "if a tribe sues in federal district court and the court finds that", "paragraph_id": "para_375" }, { "text": "the state has failed to negotiate in good faith. Those remedial", "paragraph_id": "para_376" }, { "text": "provisions require the court to “order the State and Indian", "paragraph_id": "para_377" }, { "text": "tribe to conclude . . . a compact within a 60-day period.” Id.", "paragraph_id": "para_378" }, { "text": "§ 2710(d)(7)(B)(iii) (footnote omitted). If the parties fail to", "paragraph_id": "para_379" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 13", "paragraph_id": "para_380" }, { "text": "reach an agreement, they must “each submit to a mediator", "paragraph_id": "para_381" }, { "text": "appointed by the court a proposed compact that represents", "paragraph_id": "para_382" }, { "text": "their last best offer for a compact.” Id. § 2710(d)(7)(B)(iv).", "paragraph_id": "para_383" }, { "text": "That mediator must then “select from the two proposed", "paragraph_id": "para_384" }, { "text": "compacts the one which best comports with” IGRA, other", "paragraph_id": "para_385" }, { "text": "federal law, and the district court’s findings and order. Id.", "paragraph_id": "para_386" }, { "text": "If the state still does not consent to the compact, the", "paragraph_id": "para_387" }, { "text": "“Secretary [of the Interior] shall prescribe, in consultation", "paragraph_id": "para_388" }, { "text": "with the Indian tribe, procedures which are consistent with", "paragraph_id": "para_389" }, { "text": "the proposed compact selected by the mediator,” IGRA, and", "paragraph_id": "para_390" }, { "text": "state law, and “under which class III gaming may be", "paragraph_id": "para_391" }, { "text": "conducted on the Indian lands over which the Indian tribe", "paragraph_id": "para_392" }, { "text": "has jurisdiction.” Id. § 2710(d)(7)(B)(vii)(I)–(II). These", "paragraph_id": "para_393" }, { "text": "procedures constitute “the final remedy for a state’s refusal", "paragraph_id": "para_394" }, { "text": "to negotiate” and are “functionally equivalent” to compacts.", "paragraph_id": "para_395" }, { "text": "Stand Up for California! v. U.S. Dep’t of Interior, 959 F.3d", "paragraph_id": "para_396" }, { "text": "1154, 1159–60 (9th Cir. 2020).", "paragraph_id": "para_397" }, { "text": "III. The Tribes and Their Gaming Regimes", "paragraph_id": "para_398" }, { "text": "Blue Lake is the beneficial owner of the Blue Lake", "paragraph_id": "para_399" }, { "text": "Rancheria, which consists of approximately 26 acres of trust", "paragraph_id": "para_400" }, { "text": "and fee lands located within the exterior boundaries of the", "paragraph_id": "para_401" }, { "text": "Blue Lake Reservation in Humboldt County, California.", "paragraph_id": "para_402" }, { "text": "Chicken Ranch is the beneficial owner of the Chicken Ranch", "paragraph_id": "para_403" }, { "text": "Rancheria, which consists of approximately 40 acres of trust", "paragraph_id": "para_404" }, { "text": "and fee lands located within the exterior boundaries of the", "paragraph_id": "para_405" }, { "text": "Rancheria in Tuolumne County, California.", "paragraph_id": "para_406" }, { "text": "Both Blue Lake and Chicken Ranch earlier conducted", "paragraph_id": "para_407" }, { "text": "gaming activities on their rancherias2 under a 1999 compact", "paragraph_id": "para_408" }, { "text": "2 The term “rancheria” describes the “numerous small Indian", "paragraph_id": "para_409" }, { "text": "reservations or communities in California, the lands for which were", "paragraph_id": "para_410" }, { "text": "purchased by the Government (with Congressional authorization) for", "paragraph_id": "para_411" }, { "text": "Indian use from time to time in the early years of the twentieth century—", "paragraph_id": "para_412" }, { "text": "14 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_413" }, { "text": "with California that “gave Indian tribes in California the", "paragraph_id": "para_414" }, { "text": "exclusive right to host” class III gaming. Chicken Ranch, 42", "paragraph_id": "para_415" }, { "text": "F.4th at 1029–30. The compact was set to expire at the end", "paragraph_id": "para_416" }, { "text": "of 2020, but the Tribes and California agreed to extend it", "paragraph_id": "para_417" }, { "text": "through 2023. Id. at 1030. The negotiations stalled because", "paragraph_id": "para_418" }, { "text": "California “for years demanded” that the Tribes agree to", "paragraph_id": "para_419" }, { "text": "“family law, environmental regulation, and tort law”", "paragraph_id": "para_420" }, { "text": "provisions “unrelated to the operation gaming activities.” Id.", "paragraph_id": "para_421" }, { "text": "at 1029. The Tribes sued in federal district court, and on", "paragraph_id": "para_422" }, { "text": "appeal we held that California had failed to negotiate", "paragraph_id": "para_423" }, { "text": "successor compacts in good faith. See id. at 1049.", "paragraph_id": "para_424" }, { "text": "Consistent with IGRA’s remedial process, a court-appointed", "paragraph_id": "para_425" }, { "text": "mediator selected the Tribes’ “best and final” proposal for a", "paragraph_id": "para_426" }, { "text": "compact, to which California declined to consent. Id. at", "paragraph_id": "para_427" }, { "text": "1030. IGRA then required the Secretary of the Interior to", "paragraph_id": "para_428" }, { "text": "prescribe for each Tribe procedures that would function as", "paragraph_id": "para_429" }, { "text": "the equivalent of a compact with the state. See 25 U.S.C.", "paragraph_id": "para_430" }, { "text": "§ 2710(d)(7)(B)(vi)–(vii).", "paragraph_id": "para_431" }, { "text": "The Tribes now conduct gaming pursuant to IGRA,", "paragraph_id": "para_432" }, { "text": "those 2024 secretarial procedures,3 and gaming ordinances", "paragraph_id": "para_433" }, { "text": "a program triggered by an inquiry (in 1905–06) into the landless,", "paragraph_id": "para_434" }, { "text": "homeless or penurious state of many California Indians.” Big Lagoon", "paragraph_id": "para_435" }, { "text": "Rancheria v. California, 789 F.3d 947, 951 n.2 (9th Cir. 2015) (en banc),", "paragraph_id": "para_436" }, { "text": "as amended on denial of reh’g, (July 8, 2015) (citation modified).", "paragraph_id": "para_437" }, { "text": "3 See U.S. Dep’t of the Interior, Class III Gaming Secretarial Procedures", "paragraph_id": "para_438" }, { "text": "for the Blue Lake Rancheria, California 9 (Jan. 31, 2024),", "paragraph_id": "para_439" }, { "text": "https://www.bia.gov/sites/default/files/dup/assets/as-", "paragraph_id": "para_440" }, { "text": "ia/oig/pdf/508_compliant_2024.01.31_blue_lake_rancheria_secretarial", "paragraph_id": "para_441" }, { "text": "_procedures.pdf; [https://perma.cc/YQV5-HN45]; U.S. Dep’t of the", "paragraph_id": "para_442" }, { "text": "Interior, Class III Gaming Secretarial Procedures for the Chicken Ranch", "paragraph_id": "para_443" }, { "text": "Rancheria of Me-Wuk Indians of California 9 (Jan. 31, 2024),", "paragraph_id": "para_444" }, { "text": "https://www.bia.gov/sites/default/files/dup/assets/as-", "paragraph_id": "para_445" }, { "text": "ia/oig/pdf/508_compliant_2024.01.31_chicken_ranch_rancheria_secret", "paragraph_id": "para_446" }, { "text": "arial_procedures.pdf; [https://perma.cc/L5U5-2AS6].", "paragraph_id": "para_447" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 15", "paragraph_id": "para_448" }, { "text": "promulgated under the procedures. The Tribes take the", "paragraph_id": "para_449" }, { "text": "position that Kalshi’s event contracts amount to illegal class", "paragraph_id": "para_450" }, { "text": "III gaming because no compact or secretarial procedure", "paragraph_id": "para_451" }, { "text": "authorizes any nontribal entity to offer sports event contracts", "paragraph_id": "para_452" }, { "text": "on their lands.", "paragraph_id": "para_453" }, { "text": "IV. Kalshi and Its Gambit", "paragraph_id": "para_454" }, { "text": "KalshiEX LLC is a derivatives exchange licensed by the", "paragraph_id": "para_455" }, { "text": "Commodity Futures Trading Commission (“the", "paragraph_id": "para_456" }, { "text": "Commission”). The company operates as a designated", "paragraph_id": "para_457" }, { "text": "contract market (“DCM”) through which users take a", "paragraph_id": "para_458" }, { "text": "position on the likelihood of future events by buying and", "paragraph_id": "para_459" }, { "text": "selling derivatives that Kalshi styles as “event contracts.” A", "paragraph_id": "para_460" }, { "text": "derivative is a financial instrument whose value is", "paragraph_id": "para_461" }, { "text": "determined by the price of something else. Gary E.", "paragraph_id": "para_462" }, { "text": "Kalbaugh, Derivatives Law and Regulation 8 (3d ed. 2019).", "paragraph_id": "para_463" }, { "text": "A swap is a type of derivative whose execution can depend", "paragraph_id": "para_464" }, { "text": "“on the occurrence, nonoccurrence, or the extent of the", "paragraph_id": "para_465" }, { "text": "occurrence of an event or contingency associated with a", "paragraph_id": "para_466" }, { "text": "potential financial, economic, or commercial consequence.”", "paragraph_id": "para_467" }, { "text": "7 U.S.C. § 1a(47)(A)(ii). Picking up on the broad statutory", "paragraph_id": "para_468" }, { "text": "definition of a “swap,” Kalshi contends that its event", "paragraph_id": "para_469" }, { "text": "contracts are swaps “based on the occurrence of real-world", "paragraph_id": "para_470" }, { "text": "events such as elections and sports matches.” The event", "paragraph_id": "para_471" }, { "text": "contracts challenged in this appeal pay out based on the", "paragraph_id": "para_472" }, { "text": "outcomes of sporting events.", "paragraph_id": "para_473" }, { "text": "Robinhood Markets, Inc., owns Robinhood Derivatives", "paragraph_id": "para_474" }, { "text": "LLC, a Commission-registered futures commission", "paragraph_id": "para_475" }, { "text": "merchant authorized to accept event contract orders from", "paragraph_id": "para_476" }, { "text": "intermediary DCMs like Kalshi. Robinhood and Kalshi", "paragraph_id": "para_477" }, { "text": "have partnered to allow users located nearly anywhere in the", "paragraph_id": "para_478" }, { "text": "United States to enter into event contracts.", "paragraph_id": "para_479" }, { "text": "16 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_480" }, { "text": "Sports betting is legal in many states, see, e.g., Nev. Rev.", "paragraph_id": "para_481" }, { "text": "Stat. §§ 463.245(2); 465.086, 465.092, but not in California,", "paragraph_id": "para_482" }, { "text": "see Cal. Penal Code § 337a(a)(6). The following graphic", "paragraph_id": "para_483" }, { "text": "illustrates the comparison between a sportsbook offering and", "paragraph_id": "para_484" }, { "text": "Kalshi. The top half shows odds offered for an NFL game", "paragraph_id": "para_485" }, { "text": "on a state-regulated online sportsbook in a state where sports", "paragraph_id": "para_486" }, { "text": "betting is legal, such as in Nevada; the bottom half of the", "paragraph_id": "para_487" }, { "text": "graphic shows odds offered on Kalshi for the same game.", "paragraph_id": "para_488" }, { "text": "Both use the same format and nearly mirror each other. See", "paragraph_id": "para_489" }, { "text": "Ben Blatt & Amy Fan, Is Sports Betting Illegal in Your", "paragraph_id": "para_490" }, { "text": "State? Not If You Call It a ‘Prediction Market.’, N.Y. Times", "paragraph_id": "para_491" }, { "text": "(Oct. 5, 2025), [https://perma.cc/88XN-W2AX.]", "paragraph_id": "para_492" }, { "text": "Users can also create custom parlays, which Kalshi calls", "paragraph_id": "para_493" }, { "text": "“combos,” that stack multiple predictions on the same game.", "paragraph_id": "para_494" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 17", "paragraph_id": "para_495" }, { "text": "For example, a person can wager that the San Francisco", "paragraph_id": "para_496" }, { "text": "49ers will win by more than 4.5 points, that the game’s", "paragraph_id": "para_497" }, { "text": "combined score will exceed 49.5 points, and that Brock", "paragraph_id": "para_498" }, { "text": "Purdy will pass for over 200 yards. Trading data suggests", "paragraph_id": "para_499" }, { "text": "that up to 90 percent of Kalshi’s trading volume comes from", "paragraph_id": "para_500" }, { "text": "sports. Dan Santaromita & Hannah Vanbiber, Prediction", "paragraph_id": "para_501" }, { "text": "Markets Are Coming to Sports in a Big Way, N.Y. Times:", "paragraph_id": "para_502" }, { "text": "The Athletic (Dec. 23, 2025), [https://perma.cc/4984-48Y5].", "paragraph_id": "para_503" }, { "text": "To understand the parties’ arguments about the nature of", "paragraph_id": "para_504" }, { "text": "Kalshi’s contracts, it is helpful to survey how an entity", "paragraph_id": "para_505" }, { "text": "becomes a DCM.", "paragraph_id": "para_506" }, { "text": "The Commodity Exchange Act permits entities like", "paragraph_id": "para_507" }, { "text": "Kalshi to become DCMs by proving that they can comply", "paragraph_id": "para_508" }, { "text": "with twenty-three “[c]ore principles” identified in the CEA", "paragraph_id": "para_509" }, { "text": "and Commission regulations. See 7 U.S.C. § 7(d); 17 C.F.R.", "paragraph_id": "para_510" }, { "text": "pt. 38. The Dodd-Frank Act added to the CEA a “[s]pecial", "paragraph_id": "para_511" }, { "text": "rule” for the review and approval of event contracts. 7", "paragraph_id": "para_512" }, { "text": "U.S.C. § 7a-2(c)(5)(C). All authorized DCMs may either", "paragraph_id": "para_513" }, { "text": "self-certify event contracts or can decide to request the", "paragraph_id": "para_514" }, { "text": "Commission’s preapproval for a given contract. Id. § 7a-", "paragraph_id": "para_515" }, { "text": "2(c); 17 C.F.R. § 40.2(a) (self-certification requirements);", "paragraph_id": "para_516" }, { "text": "17 C.F.R. § 40.3 (preapproval rules). The Commission can", "paragraph_id": "para_517" }, { "text": "prohibit event contracts that “involve . . . gaming” if it finds", "paragraph_id": "para_518" }, { "text": "they “are contrary to the public interest.” 7 U.S.C. § 7a-", "paragraph_id": "para_519" }, { "text": "2(c)(5)(C)(i)(V). The self-certified contracts go forward", "paragraph_id": "para_520" }, { "text": "unless the Commission steps in. See id. § 7a-2(c)(1).", "paragraph_id": "para_521" }, { "text": "The CEA provides the Commission with “exclusive", "paragraph_id": "para_522" }, { "text": "jurisdiction” to regulate DCMs. Id. § 2(a)(1)(A). What", "paragraph_id": "para_523" }, { "text": "“exclusive” means in this context is subject to much", "paragraph_id": "para_524" }, { "text": "disagreement both among the litigants and in other", "paragraph_id": "para_525" }, { "text": "proceedings. See, e.g., KalshiEX, LLC v. Assad, --- F.4th --", "paragraph_id": "para_526" }, { "text": "-, 2026 WL 2543846, at *15 (9th Cir. Aug. 28, 2026)", "paragraph_id": "para_527" }, { "text": "18 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_528" }, { "text": "(Kalshi’s “sports event contracts are likely not swaps under", "paragraph_id": "para_529" }, { "text": "the CEA” and are thus not subject to the Commission’s", "paragraph_id": "para_530" }, { "text": "exclusive jurisdiction); KalshiEX, LLC v. Flaherty, 172", "paragraph_id": "para_531" }, { "text": "F.4th 220, 229 (3d Cir. 2026) (the CEA preempts state", "paragraph_id": "para_532" }, { "text": "gaming regulations because Kalshi’s event contracts are", "paragraph_id": "para_533" }, { "text": "swaps subject to the Commission’s exclusive jurisdiction);", "paragraph_id": "para_534" }, { "text": "KalshiEX LLC v. Schuler, No. 26-3196, 2026 WL 1295806,", "paragraph_id": "para_535" }, { "text": "at *3 (6th Cir. Apr. 24, 2026) (per curiam) (assuming", "paragraph_id": "para_536" }, { "text": "without deciding that Kalshi’s event contracts are swaps, but", "paragraph_id": "para_537" }, { "text": "denying Kalshi’s request for an injunction pending appeal", "paragraph_id": "para_538" }, { "text": "against Ohio’s gaming regulator because the question of the", "paragraph_id": "para_539" }, { "text": "Commission’s exclusive jurisdiction is “largely in equipoise", "paragraph_id": "para_540" }, { "text": "(if not favoring Ohio)”); KalshiEX LLC v. Martin, 793 F.", "paragraph_id": "para_541" }, { "text": "Supp. 3d 667, 678 (D. Md. 2025) (the Commission’s", "paragraph_id": "para_542" }, { "text": "jurisdiction is exclusive to that of the SEC); KalshiEX LLC", "paragraph_id": "para_543" }, { "text": "v. Williams, No. 25-cv-08846, 2026 WL 2017466, at *6–9", "paragraph_id": "para_544" }, { "text": "(S.D.N.Y. July 13, 2026) (assuming without deciding that", "paragraph_id": "para_545" }, { "text": "Kalshi’s event contracts are swaps, but holding that the", "paragraph_id": "para_546" }, { "text": "Commission’s exclusive jurisdiction over swap transactions", "paragraph_id": "para_547" }, { "text": "does not preempt state gaming regulation). Notably, none of", "paragraph_id": "para_548" }, { "text": "these cases involves event contracts on tribal lands.", "paragraph_id": "para_549" }, { "text": "Kalshi first filed a self-certification to trade sports event", "paragraph_id": "para_550" }, { "text": "contracts on January 22, 2025. Those initial sports event", "paragraph_id": "para_551" }, { "text": "contracts allowed buyers to predict the winner of a sport", "paragraph_id": "para_552" }, { "text": "event related to American sports leagues, and took the form", "paragraph_id": "para_553" }, { "text": "of a binary, “yes/no” event contract that posed the question:", "paragraph_id": "para_554" }, { "text": "“Will win ?” Commodity Futures Trading", "paragraph_id": "para_555" }, { "text": "Comm’n, Kalshi Notification Regarding the Initial Listing", "paragraph_id": "para_556" }, { "text": "(Jan. 22, 2025),", "paragraph_id": "para_557" }, { "text": "https://www.cftc.gov/sites/default/files/filings/ptc/25/01/ptc", "paragraph_id": "para_558" }, { "text": "01222514045.pdf; [https://perma.cc/8J4A-Z8NH].", "paragraph_id": "para_559" }, { "text": "In this court, Kalshi studiously wraps its product in the", "paragraph_id": "para_560" }, { "text": "language of derivatives. Its advertising is less coy. The", "paragraph_id": "para_561" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 19", "paragraph_id": "para_562" }, { "text": "advertisement that the Tribes challenge in this appeal states", "paragraph_id": "para_563" }, { "text": "that “Sports Betting [Is] Legal in all 50 States on Kalshi.”", "paragraph_id": "para_564" }, { "text": "Analysis", "paragraph_id": "para_565" }, { "text": "In seeking a preliminary injunction, the Tribes must", "paragraph_id": "para_566" }, { "text": "establish that (1) “[they are] likely to succeed on the merits”;", "paragraph_id": "para_567" }, { "text": "(2) “[they are] likely to suffer irreparable harm”; (3) “that", "paragraph_id": "para_568" }, { "text": "the balance of equities tips in [their] favor”; and (4) “that an", "paragraph_id": "para_569" }, { "text": "injunction is in the public interest.” Winter v. Nat. Res. Def.", "paragraph_id": "para_570" }, { "text": "Council, Inc., 555 U.S. 7, 20 (2008). We begin with the", "paragraph_id": "para_571" }, { "text": "likelihood of success on the merits, which we have", "paragraph_id": "para_572" }, { "text": "recognized as “the most important Winter factor.” Disney", "paragraph_id": "para_573" }, { "text": "Enters. v. VidAngel, Inc., 869 F.3d 848, 856 (9th Cir. 2017)", "paragraph_id": "para_574" }, { "text": "(citation modified).", "paragraph_id": "para_575" }, { "text": "20 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_576" }, { "text": "Reviewing de novo the “underlying issues of law”", "paragraph_id": "para_577" }, { "text": "immanent in the district court’s denial of the preliminary", "paragraph_id": "para_578" }, { "text": "injunction, Norbert v. City & County of San Francisco, 10", "paragraph_id": "para_579" }, { "text": "F.4th 918, 927 (9th Cir. 2021) (citation modified), we", "paragraph_id": "para_580" }, { "text": "conclude that the Tribes are likely to prevail on their IGRA", "paragraph_id": "para_581" }, { "text": "claim.", "paragraph_id": "para_582" }, { "text": "I. The Tribes’ IGRA Claim", "paragraph_id": "para_583" }, { "text": "The sports event contracts challenged in this appeal", "paragraph_id": "para_584" }, { "text": "likely violate the Tribes’ gaming ordinances, which the", "paragraph_id": "para_585" }, { "text": "Tribes were required to enact for their secretarially approved", "paragraph_id": "para_586" }, { "text": "gaming regimes to take effect. Violation of an ordinance is", "paragraph_id": "para_587" }, { "text": "tantamount to a violation of a Tribe’s secretarial procedures.", "paragraph_id": "para_588" }, { "text": "This appeal concerns IGRA subsection 2710(d)(7)(A),", "paragraph_id": "para_589" }, { "text": "which provides that:", "paragraph_id": "para_590" }, { "text": "The United States district courts shall have", "paragraph_id": "para_591" }, { "text": "jurisdiction over—", "paragraph_id": "para_592" }, { "text": ". . .", "paragraph_id": "para_593" }, { "text": "(ii) any cause of action initiated by a State", "paragraph_id": "para_594" }, { "text": "or Indian tribe to enjoin a class III gaming", "paragraph_id": "para_595" }, { "text": "activity located on Indian lands and", "paragraph_id": "para_596" }, { "text": "conducted in violation of any Tribal-State", "paragraph_id": "para_597" }, { "text": "compact entered into under paragraph (3)", "paragraph_id": "para_598" }, { "text": "that is in effect, and", "paragraph_id": "para_599" }, { "text": "(iii) any cause of action initiated by the", "paragraph_id": "para_600" }, { "text": "Secretary to enforce the procedures", "paragraph_id": "para_601" }, { "text": "prescribed under subparagraph (B)(vii).", "paragraph_id": "para_602" }, { "text": "25 U.S.C. § 2710(d)(7)(A)(ii)–(iii).", "paragraph_id": "para_603" }, { "text": "While subsection 2710(d)(7)(A) speaks in jurisdictional", "paragraph_id": "para_604" }, { "text": "terms, the provision does not impose a threshold", "paragraph_id": "para_605" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 21", "paragraph_id": "para_606" }, { "text": "“jurisdictional requirement.” The Supreme Court has", "paragraph_id": "para_607" }, { "text": "explained that the “general federal-question statute, 28", "paragraph_id": "para_608" }, { "text": "U.S.C. § 1331, gives a district court subject matter", "paragraph_id": "para_609" }, { "text": "jurisdiction to decide any claim alleging a violation of", "paragraph_id": "para_610" }, { "text": "IGRA.” Bay Mills, 572 U.S. at 788 n.2. The issue on which", "paragraph_id": "para_611" }, { "text": "this appeal centers, then, is not our jurisdiction, but whether", "paragraph_id": "para_612" }, { "text": "IGRA provides the Tribes with a cause of action against", "paragraph_id": "para_613" }, { "text": "Kalshi. We conclude that it does.", "paragraph_id": "para_614" }, { "text": "We begin with the established proposition that, once", "paragraph_id": "para_615" }, { "text": "implemented, secretarial procedures are “functionally", "paragraph_id": "para_616" }, { "text": "equivalent” to compacts. See Stand Up, 959 F.3d at 1160;", "paragraph_id": "para_617" }, { "text": "accord Mashantucket Pequot Tribe v. Town of Ledyard, 722", "paragraph_id": "para_618" }, { "text": "F.3d 457, 462, 469–70 (2d Cir. 2013) (analyzing secretarial", "paragraph_id": "para_619" }, { "text": "procedures vis-à-vis compact topics listed in subsection", "paragraph_id": "para_620" }, { "text": "2710(d)(3)(C)(iii)). Although the Secretary is empowered", "paragraph_id": "para_621" }, { "text": "to bring suit under subsection 2710(d)(7)(A)(iii) to", "paragraph_id": "para_622" }, { "text": "“enforce” secretarial procedures, that provision does not", "paragraph_id": "para_623" }, { "text": "circumscribe the Tribes’ ability to sue to “enjoin a class III", "paragraph_id": "para_624" }, { "text": "gaming activity” under subsection 2710(d)(7)(A)(ii). It is", "paragraph_id": "para_625" }, { "text": "therefore hardly surprising that no court of appeals has", "paragraph_id": "para_626" }, { "text": "adopted Kalshi’s narrow view that only the Secretary of the", "paragraph_id": "para_627" }, { "text": "Interior has a cause of action to enforce secretarial", "paragraph_id": "para_628" }, { "text": "procedures.4 Rather, subsection 2710(d)(7)(A)(iii) gives the", "paragraph_id": "para_629" }, { "text": "4 Such an interpretation would reward a state that refuses to negotiate", "paragraph_id": "para_630" }, { "text": "with a tribe by denying that tribe a cause of action where it would", "paragraph_id": "para_631" }, { "text": "otherwise exist. As we explained in Stand Up, that interpretation “reads", "paragraph_id": "para_632" }, { "text": "out of existence” the qualifying phrase “only if” in subsection 2710(d)(1)", "paragraph_id": "para_633" }, { "text": "and makes a “nullity” out of 18 U.S.C. § 1166, which criminalizes", "paragraph_id": "para_634" }, { "text": "“gambling activities on Indian lands who would have been subject to", "paragraph_id": "para_635" }, { "text": "criminal liability by the state if the activities had occurred on state rather", "paragraph_id": "para_636" }, { "text": "than Indian lands.” 959 F.4th at 1160 (citation modified). Subsection", "paragraph_id": "para_637" }, { "text": "2710(d)(7)(A)(ii) thus confers upon tribes a cause of action to enjoin", "paragraph_id": "para_638" }, { "text": "class III gaming activity in violation of implemented secretarial", "paragraph_id": "para_639" }, { "text": "procedures.", "paragraph_id": "para_640" }, { "text": "22 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_641" }, { "text": "Secretary an additional enforcement tool. It neither makes", "paragraph_id": "para_642" }, { "text": "the Secretary the exclusive enforcer of the procedures that", "paragraph_id": "para_643" }, { "text": "she prescribes, nor denies tribes that have no compact a", "paragraph_id": "para_644" }, { "text": "cause of action that is available to the tribes that do.", "paragraph_id": "para_645" }, { "text": "Satisfied that the absence of a compact does not preclude", "paragraph_id": "para_646" }, { "text": "a cause of action under subsection 2710(d)(7)(A)(ii) when", "paragraph_id": "para_647" }, { "text": "valid secretarial procedures are “in effect,” we turn to the", "paragraph_id": "para_648" }, { "text": "provision’s plain language.", "paragraph_id": "para_649" }, { "text": "To demonstrate a likelihood of success on the merits of", "paragraph_id": "para_650" }, { "text": "their IGRA claim, the Tribes must demonstrate that Kalshi’s", "paragraph_id": "para_651" }, { "text": "sports event contracts constitute “class III gaming", "paragraph_id": "para_652" }, { "text": "activit[ies],” that the contracts are “located on Indian lands,”", "paragraph_id": "para_653" }, { "text": "and that Kalshi is offering them “in violation of” the Tribes’", "paragraph_id": "para_654" }, { "text": "secretarial procedures. 25 U.S.C. § 2710(d)(7)(A)(ii). We", "paragraph_id": "para_655" }, { "text": "consider each element in turn.", "paragraph_id": "para_656" }, { "text": "A. Kalshi’s Sports Event Contracts Are Class III", "paragraph_id": "para_657" }, { "text": "Gaming.", "paragraph_id": "para_658" }, { "text": "In our view, the challenged sports event contracts", "paragraph_id": "para_659" }, { "text": "constitute “class III gaming activit[ies].” Id.", "paragraph_id": "para_660" }, { "text": "§ 2710(d)(7)(A)(ii). IGRA’s residual definition of class III", "paragraph_id": "para_661" }, { "text": "gaming as “all forms of gaming that are not class I gaming", "paragraph_id": "para_662" }, { "text": "or class II gaming” sweeps broadly enough to include them.", "paragraph_id": "para_663" }, { "text": "Id. § 2703(8). The National Indian Gaming Commission", "paragraph_id": "para_664" }, { "text": "(“NIGC”) 5 regulations implementing IGRA also provide", "paragraph_id": "para_665" }, { "text": "that class III gaming includes “[a]ny sports betting and", "paragraph_id": "para_666" }, { "text": "parimutuel wagering.” 25 C.F.R. § 502.4(c) (emphasis", "paragraph_id": "para_667" }, { "text": "added); see also Maverick Gaming LLC v. United States, 123", "paragraph_id": "para_668" }, { "text": "5 The NIGC is a federal agency that IGRA created within the Department", "paragraph_id": "para_669" }, { "text": "of the Interior, 28 U.S.C. § 2704, to “oversee[] the business of Indian", "paragraph_id": "para_670" }, { "text": "gaming in order to ensure its lasting integrity.” Artichoke Joe’s, 353 F.3d", "paragraph_id": "para_671" }, { "text": "at 716 n.6.", "paragraph_id": "para_672" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 23", "paragraph_id": "para_673" }, { "text": "F.4th 960, 975 (9th Cir. 2024) (discussing “sports betting", "paragraph_id": "para_674" }, { "text": "and other class III gaming”); W. Flagler Assocs., Ltd. v.", "paragraph_id": "para_675" }, { "text": "Haaland, 71 F.4th 1059, 1062 (D.C. Cir. 2023) (“Class III", "paragraph_id": "para_676" }, { "text": "gaming . . . includes casino games, slot machines, and sports", "paragraph_id": "para_677" }, { "text": "betting.”). And we recently clarified “[t]he substance of the", "paragraph_id": "para_678" }, { "text": "sports event contracts offered on Kalshi’s DCM is sports", "paragraph_id": "para_679" }, { "text": "gambling, regardless of whether Kalshi calls them swaps.”", "paragraph_id": "para_680" }, { "text": "See Assad, 2026 WL 2543846, at *10 (emphasis added).", "paragraph_id": "para_681" }, { "text": "The analysis is functional. IGRA does not ask whether the", "paragraph_id": "para_682" }, { "text": "operator labels the product a bet or an event contract, or", "paragraph_id": "para_683" }, { "text": "something else. It asks what the activity looks like. This", "paragraph_id": "para_684" }, { "text": "inquiry reflects the maxim that the words of a statute should", "paragraph_id": "para_685" }, { "text": "carry “their ordinary meaning.” Wisconsin Cent. Ltd. v.", "paragraph_id": "para_686" }, { "text": "United States, 585 U.S. 274, 277 (2018) (citation modified).", "paragraph_id": "para_687" }, { "text": "And the ordinary meaning could not be plainer. See Gaming,", "paragraph_id": "para_688" }, { "text": "Black’s Law Dictionary (5th ed. 1979) (“An agreement", "paragraph_id": "para_689" }, { "text": "between two or more persons to play together at a game of", "paragraph_id": "para_690" }, { "text": "chance for a stake or wager which is to become the property", "paragraph_id": "para_691" }, { "text": "of the winner, and to which all contribute.”). Our conclusion", "paragraph_id": "para_692" }, { "text": "is reinforced by the Department of Interior’s compact review", "paragraph_id": "para_693" }, { "text": "regulation, which defines gaming activity as “the conduct of", "paragraph_id": "para_694" }, { "text": "class III gaming involving the three required elements of", "paragraph_id": "para_695" }, { "text": "chance, consideration, and prize or reward.” 25 C.F.R.", "paragraph_id": "para_696" }, { "text": "§ 293.2(d). These definitions direct attention to the act of", "paragraph_id": "para_697" }, { "text": "play.", "paragraph_id": "para_698" }, { "text": "In practice, what Kalshi labels “sports event contracts”", "paragraph_id": "para_699" }, { "text": "neatly track the activities described in IGRA and its", "paragraph_id": "para_700" }, { "text": "implementing regulations. The similarities between a sports", "paragraph_id": "para_701" }, { "text": "event contract, which even Kalshi calls “sports betting,” and", "paragraph_id": "para_702" }, { "text": "a traditional sports wager are overwhelming. See Assad,", "paragraph_id": "para_703" }, { "text": "2026 WL 2543846, at *10–11. The user pays consideration", "paragraph_id": "para_704" }, { "text": "to take a position, which turns on the uncertain outcome of a", "paragraph_id": "para_705" }, { "text": "sporting event, and the user then receives a reward if the", "paragraph_id": "para_706" }, { "text": "24 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_707" }, { "text": "outcome occurs. Kalshi offers bets on point spreads,", "paragraph_id": "para_708" }, { "text": "over/under game totals, and player propositions. It also", "paragraph_id": "para_709" }, { "text": "permits users to combine these wagers into parlays.", "paragraph_id": "para_710" }, { "text": "Imagine a user standing on the floor of the Blue Lake", "paragraph_id": "para_711" }, { "text": "Casino Hotel who downloads Kalshi and DraftKings, a", "paragraph_id": "para_712" }, { "text": "classic online sports betting app. On Kalshi, she buys a $100", "paragraph_id": "para_713" }, { "text": "contract that pays if the San Francisco Giants win. On", "paragraph_id": "para_714" }, { "text": "DraftKings, she wagers $100 on the same outcome. The", "paragraph_id": "para_715" }, { "text": "bettor, the place, the stake, and the contingency remain the", "paragraph_id": "para_716" }, { "text": "same. The only thing that changes is Kalshi’s vocabulary.", "paragraph_id": "para_717" }, { "text": "Kalshi may reshuffle the cards, but it cannot change the", "paragraph_id": "para_718" }, { "text": "hand: Its sports event contracts are class III gaming. Each", "paragraph_id": "para_719" }, { "text": "entry into a sports event contract materially resembles a “roll", "paragraph_id": "para_720" }, { "text": "of the dice and spin of the wheel,” “gambling in the poker", "paragraph_id": "para_721" }, { "text": "hall,” Bay Mills, 572 U.S. at 792, or “parimutuel horse-", "paragraph_id": "para_722" }, { "text": "wagering,” Artichoke Joe’s, 353 F.3d at 715—in short, an", "paragraph_id": "para_723" }, { "text": "“act of placing a bet or wager,” California v. Iipay Nation of", "paragraph_id": "para_724" }, { "text": "Santa Ysabel, 898 F.3d 960, 967 (9th Cir. 2018). This is the", "paragraph_id": "para_725" }, { "text": "“stuff” of sports betting. Bay Mills, 572 U.S. at 792.4 F4F", "paragraph_id": "para_726" }, { "text": "B. Kalshi’s Sports Event Contracts Are Located", "paragraph_id": "para_727" }, { "text": "on Indian Lands.", "paragraph_id": "para_728" }, { "text": "Kalshi’s products are also “located on Indian lands”", "paragraph_id": "para_729" }, { "text": "when a user enters into the event contract from tribal", "paragraph_id": "para_730" }, { "text": "territory. 25 U.S.C. § 2710(d)(7)(A)(ii). IGRA does not", "paragraph_id": "para_731" }, { "text": "require that the gaming activity take place exclusively on", "paragraph_id": "para_732" }, { "text": "Indian lands in order to come within its ambit. In", "paragraph_id": "para_733" }, { "text": "harmonizing IGRA with the UIGEA, we have explained that", "paragraph_id": "para_734" }, { "text": "where “the act of placing a bet or wager” takes place in a", "paragraph_id": "para_735" }, { "text": "state that prohibits a form of betting but an online gaming", "paragraph_id": "para_736" }, { "text": "server is located on Indian lands, “the bets are not legal in", "paragraph_id": "para_737" }, { "text": "the jurisdiction where they are initiated” and are thus illegal", "paragraph_id": "para_738" }, { "text": "under the UIGEA. Iipay, 898 F.3d at 967. The same logic", "paragraph_id": "para_739" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 25", "paragraph_id": "para_740" }, { "text": "works in reverse here. Kalshi may be headquartered in New", "paragraph_id": "para_741" }, { "text": "York, and its back-end infrastructure may sit off Indian", "paragraph_id": "para_742" }, { "text": "lands, but a Kalshi consumer can still enter an event contract", "paragraph_id": "para_743" }, { "text": "on Indian lands if she purchases one while on a reservation.", "paragraph_id": "para_744" }, { "text": "See Bay Mills, 572 U.S. at 792 (class III gaming “is what", "paragraph_id": "para_745" }, { "text": "goes on in a casino” and not “the off-site licensing or", "paragraph_id": "para_746" }, { "text": "operation of the games”). It follows that “at least some of", "paragraph_id": "para_747" }, { "text": "the ‘gaming activity’” challenged here occurs on Indian", "paragraph_id": "para_748" }, { "text": "lands. Iipay, 898 F.3d at 967.6", "paragraph_id": "para_749" }, { "text": "C. Kalshi’s Sports Event Contracts Violate the", "paragraph_id": "para_750" }, { "text": "Tribes’ Secretarial Procedures.", "paragraph_id": "para_751" }, { "text": "The Tribes are likely to succeed on the merits of their", "paragraph_id": "para_752" }, { "text": "IGRA claim because they have demonstrated a likelihood", "paragraph_id": "para_753" }, { "text": "that Kalshi’s activity on Indian lands is conducted in", "paragraph_id": "para_754" }, { "text": "violation of their secretarial procedures. The statute", "paragraph_id": "para_755" }, { "text": "establishes a “cause of action initiated by a State or Indian", "paragraph_id": "para_756" }, { "text": "tribe to enjoin a class III gaming activity located on Indian", "paragraph_id": "para_757" }, { "text": "lands and conducted in violation of any Tribal-State compact", "paragraph_id": "para_758" }, { "text": "entered into under paragraph (3) that is in effect.” 25 U.S.C.", "paragraph_id": "para_759" }, { "text": "§ 2710(d)(7)(A)(ii). The object of “enjoin” in subsection", "paragraph_id": "para_760" }, { "text": "6 Our reading is also consistent with IGRA’s implementing regulations", "paragraph_id": "para_761" }, { "text": "for internet gambling occurring on tribal land, such as those that govern", "paragraph_id": "para_762" }, { "text": "a tribe’s offering of internet gambling that is accessible on another tribe’s", "paragraph_id": "para_763" }, { "text": "lands. IGRA regulations provide that tribes have jurisdiction over", "paragraph_id": "para_764" }, { "text": "internet gaming transactions where the bettor is located on another", "paragraph_id": "para_765" }, { "text": "tribe’s lands only if the other tribe has “lawfully consented.” 25 C.F.R.", "paragraph_id": "para_766" }, { "text": "§ 293.26(c). The rule is similar in other areas of law: Interjurisdictional", "paragraph_id": "para_767" }, { "text": "gaming is allowed only when the bet or wager is legal in both the", "paragraph_id": "para_768" }, { "text": "originating and recipient locales. See, e.g., 18 U.S.C. § 1084(a)–(b)", "paragraph_id": "para_769" }, { "text": "(gambling using wire transmission is criminal offense unless gambling", "paragraph_id": "para_770" }, { "text": "is legal in both state or foreign country where bet originated and was", "paragraph_id": "para_771" }, { "text": "sent); 15 U.S.C. § 3002(3) (defining “interstate off-track wager” as “a", "paragraph_id": "para_772" }, { "text": "legal wager” placed on outcome of a horserace “where lawful in each", "paragraph_id": "para_773" }, { "text": "State involved”).", "paragraph_id": "para_774" }, { "text": "26 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_775" }, { "text": "2710(d)(7)(A)(ii) is not a party to a compact or procedure; it", "paragraph_id": "para_776" }, { "text": "is “a class III gaming activity.” Congress limited who may", "paragraph_id": "para_777" }, { "text": "“initiate” an action (tribes and states). Id. It also limited", "paragraph_id": "para_778" }, { "text": "which activities may be “enjoin[ed]” (class III gaming", "paragraph_id": "para_779" }, { "text": "activity). Id. But it did not limit which entities may be", "paragraph_id": "para_780" }, { "text": "enjoined.", "paragraph_id": "para_781" }, { "text": "A nonparty’s violation of a gaming ordinance may", "paragraph_id": "para_782" }, { "text": "constitute a violation of a secretarial procedure if that", "paragraph_id": "para_783" }, { "text": "procedure makes compliance with an ordinance part of the", "paragraph_id": "para_784" }, { "text": "terms under which class III gaming may take place. That is", "paragraph_id": "para_785" }, { "text": "precisely the case here. The Chicken Ranch and Blue Lake", "paragraph_id": "para_786" }, { "text": "secretarial procedures treat class III gaming as lawful only", "paragraph_id": "para_787" }, { "text": "when tribally authorized and conducted through the tribal", "paragraph_id": "para_788" }, { "text": "regulatory structure. Because the secretarial procedures in", "paragraph_id": "para_789" }, { "text": "this case depend on and incorporate the Tribes’ ordinances,", "paragraph_id": "para_790" }, { "text": "and Kalshi’s sports event contracts are not authorized by", "paragraph_id": "para_791" }, { "text": "those ordinances, those contracts are also “in violation of”", "paragraph_id": "para_792" }, { "text": "the compact and procedures. Id.", "paragraph_id": "para_793" }, { "text": "Our conclusion flows from IGRA, which requires a", "paragraph_id": "para_794" }, { "text": "federally approved tribal ordinance for the compacted or", "paragraph_id": "para_795" }, { "text": "secretarially approved gaming regime to take effect. If a", "paragraph_id": "para_796" }, { "text": "tribe “proposes to engage in, or to authorize any person or", "paragraph_id": "para_797" }, { "text": "entity to engage in, a class III gaming activity,” the tribal", "paragraph_id": "para_798" }, { "text": "governing body must “adopt and submit to the Chairman [of", "paragraph_id": "para_799" }, { "text": "the NIGC], an ordinance or resolution” that meets IGRA’s", "paragraph_id": "para_800" }, { "text": "requirements. Id. § 2710(d)(2)(A). After the NIGC", "paragraph_id": "para_801" }, { "text": "Chairman approves the ordinance and “publish[es] [it] in the", "paragraph_id": "para_802" }, { "text": "Federal Register,” “class III gaming activity on the Indian", "paragraph_id": "para_803" }, { "text": "lands of the Indian tribe [is] fully subject to the terms and", "paragraph_id": "para_804" }, { "text": "conditions of the Tribal-State compact.” Id.", "paragraph_id": "para_805" }, { "text": "§ 2710(d)(2)(B)–(C). No ordinance means no compacted", "paragraph_id": "para_806" }, { "text": "regime.", "paragraph_id": "para_807" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 27", "paragraph_id": "para_808" }, { "text": "The secretarial procedures of Chicken Ranch and Blue", "paragraph_id": "para_809" }, { "text": "Ranch support this conclusion. The procedures exist", "paragraph_id": "para_810" }, { "text": "because, after a failure to negotiate a state-tribal compact,", "paragraph_id": "para_811" }, { "text": "IGRA directed the Secretary of the Interior to prescribe rules", "paragraph_id": "para_812" }, { "text": "“under which class III gaming may be conducted” on the", "paragraph_id": "para_813" }, { "text": "Tribe’s lands. Id. § 2710(d)(7)(B)(vii)(II). The procedures", "paragraph_id": "para_814" }, { "text": "also describe themselves as the Secretary’s “full and", "paragraph_id": "para_815" }, { "text": "complete authorization . . . for the Tribe to conduct class III", "paragraph_id": "para_816" }, { "text": "Gaming Activities on its Indian lands pursuant to IGRA.”", "paragraph_id": "para_817" }, { "text": "They further provide that the “Gaming Operation authorized", "paragraph_id": "para_818" }, { "text": "under [them] shall be owned solely by the Tribe or any entity", "paragraph_id": "para_819" }, { "text": "wholly owned or controlled by the Tribe,” and that “[a]ll", "paragraph_id": "para_820" }, { "text": "Gaming Activities conducted under th[e] Secretarial", "paragraph_id": "para_821" }, { "text": "Procedures shall, at a minimum, comply . . . with a Gaming", "paragraph_id": "para_822" }, { "text": "Ordinance duly adopted by the Tribe and approved in", "paragraph_id": "para_823" }, { "text": "accordance with IGRA.”", "paragraph_id": "para_824" }, { "text": "The Tribes’ statutorily mandated gaming ordinances", "paragraph_id": "para_825" }, { "text": "speak even more forcefully on the subject. The Chicken", "paragraph_id": "para_826" }, { "text": "Ranch ordinance provides that “[a]ll gaming activities", "paragraph_id": "para_827" }, { "text": "on the Rancheria (whether Class I, II, or III) are", "paragraph_id": "para_828" }, { "text": "prohibited except as expressly authorized under", "paragraph_id": "para_829" }, { "text": "[the ordinance].” Ord. No. 99-721-1 § 5 (1999) (Chicken", "paragraph_id": "para_830" }, { "text": "Ranch Rancheria of Me-Wuk Indians Tribal Council),", "paragraph_id": "para_831" }, { "text": "https://www.nigc.gov/?wpdmdl=9493&ind=9505;", "paragraph_id": "para_832" }, { "text": "[https://perma.cc/67YY-F88S] as amended, Ord No. 99-", "paragraph_id": "para_833" }, { "text": "721-01-A,", "paragraph_id": "para_834" }, { "text": "https://www.nigc.gov/?wpdmdl=9494&ind=9506;", "paragraph_id": "para_835" }, { "text": "[https://perma.cc/W4SA-DK94] (emphasis added).", "paragraph_id": "para_836" }, { "text": "The Blue Lake ordinance contains an identical provision.", "paragraph_id": "para_837" }, { "text": "Ord. No. 2000-___ § 5 (2001),", "paragraph_id": "para_838" }, { "text": "https://www.nigc.gov/?wpdmdl=3428&ind=3430;", "paragraph_id": "para_839" }, { "text": "28 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_840" }, { "text": "[https://perma.cc/3UUG-9JSG] (emphasis added).7 These", "paragraph_id": "para_841" }, { "text": "regulatory instruments establish a closed system in which", "paragraph_id": "para_842" }, { "text": "class III gaming activity is barred unless tribally authorized", "paragraph_id": "para_843" }, { "text": "and class III gaming not authorized by an ordinance violates", "paragraph_id": "para_844" }, { "text": "the secretarial procedures. IGRA thus confers upon the", "paragraph_id": "para_845" }, { "text": "Tribes a cause of action to enjoin Kalshi’s sports event", "paragraph_id": "para_846" }, { "text": "contracts on their lands.", "paragraph_id": "para_847" }, { "text": "We reject Kalshi’s argument that the Tribes’", "paragraph_id": "para_848" }, { "text": "“instruments cannot include provisions regulating third", "paragraph_id": "para_849" }, { "text": "parties in light of IGRA’s ‘strict[]’ limitations on what", "paragraph_id": "para_850" }, { "text": "‘topics’ a tribal-state compact can address.” Regarding", "paragraph_id": "para_851" }, { "text": "topics, IGRA simply provides that a compact or procedure", "paragraph_id": "para_852" }, { "text": "“may include provisions relating to” several topics,", "paragraph_id": "para_853" }, { "text": "including “any . . . subjects that are directly related to the", "paragraph_id": "para_854" }, { "text": "operation of gaming activities.” 25 U.S.C. § 2710(d)(3)(C)", "paragraph_id": "para_855" }, { "text": "(emphasis added). In IGRA, “may” means “may only.” See", "paragraph_id": "para_856" }, { "text": "Chicken Ranch, 42 F.4th at 1035. That “limit on negotiation", "paragraph_id": "para_857" }, { "text": "topics” likely represents a “barrier erected against state", "paragraph_id": "para_858" }, { "text": "overreach”: The limitation stops states from demanding", "paragraph_id": "para_859" }, { "text": "“inappropriate concessions from tribes or us[ing] [c]ompacts", "paragraph_id": "para_860" }, { "text": "as a subterfuge for imposing State jurisdiction on tribal", "paragraph_id": "para_861" }, { "text": "lands.” Id. at 1053 (Wardlaw, J., concurring) (citation", "paragraph_id": "para_862" }, { "text": "modified).", "paragraph_id": "para_863" }, { "text": "Kalshi’s argument is ultimately beside the point. Some", "paragraph_id": "para_864" }, { "text": "topics may be off limits. But the permitted topics bear", "paragraph_id": "para_865" }, { "text": "directly on IGRA’s central concerns, because they include", "paragraph_id": "para_866" }, { "text": "ordinances that relate to “the application of the . . . civil laws", "paragraph_id": "para_867" }, { "text": "and regulations of the Indian tribe . . . that are directly", "paragraph_id": "para_868" }, { "text": "7 We take judicial notice of both tribal ordinances as public legal", "paragraph_id": "para_869" }, { "text": "enactments capable of accurate and ready determination from official", "paragraph_id": "para_870" }, { "text": "sources. See N. Cnty. Cmty. All., Inc. v. Salazar, 573 F.3d 738, 746 n.1", "paragraph_id": "para_871" }, { "text": "(9th Cir. 2009).", "paragraph_id": "para_872" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 29", "paragraph_id": "para_873" }, { "text": "related to, and necessary for, the licensing and regulation of", "paragraph_id": "para_874" }, { "text": "[gaming] activity.” 25 U.S.C. § 2710(d)(3)(C)(i). These", "paragraph_id": "para_875" }, { "text": "procedures therefore may—and do—provide for the", "paragraph_id": "para_876" }, { "text": "promulgation of ordinances that apply to nonparties.", "paragraph_id": "para_877" }, { "text": "At the heart of Kalshi’s proposed interpretation of IGRA", "paragraph_id": "para_878" }, { "text": "lies the revisionist view that “Tribal-State compact” means", "paragraph_id": "para_879" }, { "text": "“contract.” A contract establishes only the “rules . . . which", "paragraph_id": "para_880" }, { "text": "will govern [the parties’] relationship,” and in that sense,", "paragraph_id": "para_881" }, { "text": "permits the parties to “create a mini-universe for", "paragraph_id": "para_882" }, { "text": "themselves.” Erlich v. Menezes, 21 Cal. 4th 543, 550 (1990)", "paragraph_id": "para_883" }, { "text": "(citation modified). Kalshi reads subsection", "paragraph_id": "para_884" }, { "text": "2710(d)(7)(A)(ii) as a contract enforcement provision, but", "paragraph_id": "para_885" }, { "text": "Congress chose not to limit IGRA actions to breach of", "paragraph_id": "para_886" }, { "text": "contract claims. See 25 U.S.C. § 2710(d)(3)(C)(v) (one of", "paragraph_id": "para_887" }, { "text": "seven topics that a compact may include is “remedies for", "paragraph_id": "para_888" }, { "text": "breach of contract”). A compact certainly has contractual", "paragraph_id": "para_889" }, { "text": "features, and the general rule that a contract cannot bind a", "paragraph_id": "para_890" }, { "text": "nonparty would carry substantial force if the Tribes sought", "paragraph_id": "para_891" }, { "text": "contractual relief from Kalshi. But the Tribes do not seek", "paragraph_id": "para_892" }, { "text": "contractual relief. They seek an injunction against unlawful", "paragraph_id": "para_893" }, { "text": "class III gaming activity that violates the secretarially", "paragraph_id": "para_894" }, { "text": "approved regime on their lands.8 The remedy sought here—", "paragraph_id": "para_895" }, { "text": "8 Our decision in Cabazon Band of Mission Indians v. Wilson does not", "paragraph_id": "para_896" }, { "text": "compel a contrary result. 124 F.3d 1050 (9th Cir. 1997). That case", "paragraph_id": "para_897" }, { "text": "concerns the topics that a compact may cover, and not the persons to", "paragraph_id": "para_898" }, { "text": "whom or entities to which the compact may apply. California argued in", "paragraph_id": "para_899" }, { "text": "Wilson that the tribes violated their compacts by operating slot machines", "paragraph_id": "para_900" }, { "text": "while their compacts only authorized simulcast horse racing. Id. at 1059.", "paragraph_id": "para_901" }, { "text": "We rejected that theory because the slot machines were “not mentioned", "paragraph_id": "para_902" }, { "text": "in the [c]ompacts” and so the tribes had not “breached the [c]ompacts.”", "paragraph_id": "para_903" }, { "text": "Id. at 1060. That decision addresses a state’s effort to use compact", "paragraph_id": "para_904" }, { "text": "silence to restrict a tribe’s own authority to conduct class III gaming", "paragraph_id": "para_905" }, { "text": "activity. In contrast, the Tribes in this case seek to stop unaffiliated", "paragraph_id": "para_906" }, { "text": "nontribal actors from conducting class III gaming on tribal lands without", "paragraph_id": "para_907" }, { "text": "30 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_908" }, { "text": "that the district court “enjoin” Kalshi’s “class III gaming", "paragraph_id": "para_909" }, { "text": "activity”—brings the Tribes’ claim squarely within the", "paragraph_id": "para_910" }, { "text": "ambit of IGRA’s cause of action provision. See 25 U.S.C.", "paragraph_id": "para_911" }, { "text": "§ 2710(d)(7)(A)(ii); cf. Comanche Nation v. Ware, 174 F.4th", "paragraph_id": "para_912" }, { "text": "717, 728 (10th Cir. 2026) (“Nothing qualifies ‘Indian tribe,’", "paragraph_id": "para_913" }, { "text": "let alone something like ‘that is party to the compact.’ So", "paragraph_id": "para_914" }, { "text": "under [subsection 2710(d)(7)(A)(ii)]’s plain language, it", "paragraph_id": "para_915" }, { "text": "makes no difference which tribe brings suit, only that some", "paragraph_id": "para_916" }, { "text": "tribe with standing brings suit.”).", "paragraph_id": "para_917" }, { "text": "Kalshi’s view would also put IGRA compacts and", "paragraph_id": "para_918" }, { "text": "procedures in tension with parallel doctrines. An interstate", "paragraph_id": "para_919" }, { "text": "compact, for instance, presents “the legislative means” by", "paragraph_id": "para_920" }, { "text": "which “the age-old treaty making power of independent", "paragraph_id": "para_921" }, { "text": "sovereign nations” has been “adapt[ed] to our Union of", "paragraph_id": "para_922" }, { "text": "sovereign States.” Hinderlider v. La Plata River & Cherry", "paragraph_id": "para_923" }, { "text": "Creek Ditch Co., 304 U.S. 92, 104 (1938). Its provisions are", "paragraph_id": "para_924" }, { "text": "“binding upon the citizens of each State.” Id. at 106; see also", "paragraph_id": "para_925" }, { "text": "Texas v. New Mexico, 602 U.S. 943, 949–50 (2024) (an", "paragraph_id": "para_926" }, { "text": "interstate compact may be “contractual in nature,” but it is", "paragraph_id": "para_927" }, { "text": "“not just a contract” when federal law gives it legal effect", "paragraph_id": "para_928" }, { "text": "(citation modified)). The same logic applies to IGRA", "paragraph_id": "para_929" }, { "text": "compacts or procedures.", "paragraph_id": "para_930" }, { "text": "The upshot is that IGRA does not require that a compact", "paragraph_id": "para_931" }, { "text": "or secretarial procedures name nonparties in order to apply", "paragraph_id": "para_932" }, { "text": "to them. As to these parties, the district court’s interpretation", "paragraph_id": "para_933" }, { "text": "of subsection 2710(d)(7)(A)(ii) was legally erroneous and", "paragraph_id": "para_934" }, { "text": "does not support the denial of the preliminary injunction.", "paragraph_id": "para_935" }, { "text": "tribal authorization, compact conformity, tribal regulatory approval, or", "paragraph_id": "para_936" }, { "text": "any other form of IGRA-approved relationship. The alleged violation", "paragraph_id": "para_937" }, { "text": "goes to the heart of the gaming regime: who may conduct class III", "paragraph_id": "para_938" }, { "text": "gaming on the Tribes’ lands, what tribal approvals must issue, and what", "paragraph_id": "para_939" }, { "text": "controls govern gaming play.", "paragraph_id": "para_940" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 31", "paragraph_id": "para_941" }, { "text": "II. IGRA and the UIGEA", "paragraph_id": "para_942" }, { "text": "The UIGEA makes it illegal for a “person engaged in the", "paragraph_id": "para_943" }, { "text": "business of betting or wagering” to knowingly to accept", "paragraph_id": "para_944" }, { "text": "financial payments from an individual engaged “in unlawful", "paragraph_id": "para_945" }, { "text": "Internet gambling.” 31 U.S.C. § 5363. Unlawful internet", "paragraph_id": "para_946" }, { "text": "gambling occurs when an individual places, receives, or", "paragraph_id": "para_947" }, { "text": "transmits a “bet or wager” by using the Internet, and “where", "paragraph_id": "para_948" }, { "text": "[the] bet or wager is unlawful under any applicable Federal", "paragraph_id": "para_949" }, { "text": "or State law in the State or Tribal lands in which the bet or", "paragraph_id": "para_950" }, { "text": "wager is initiated, received, or otherwise made.” Id.", "paragraph_id": "para_951" }, { "text": "§ 5362(10)(A). The definition of “bet or wager” excludes", "paragraph_id": "para_952" }, { "text": "“any transaction conducted on or subject to the rules of a", "paragraph_id": "para_953" }, { "text": "registered entity or exempt board of trade under the", "paragraph_id": "para_954" }, { "text": "Commodity Exchange Act” such as Kalshi’s event contracts.", "paragraph_id": "para_955" }, { "text": "Id. § 5362(1)(E)(ii).", "paragraph_id": "para_956" }, { "text": "This carveout frames Kalshi’s main argument, which", "paragraph_id": "para_957" }, { "text": "proceeds down an inferential chain: Kalshi lists its contracts", "paragraph_id": "para_958" }, { "text": "on a Commission-designated exchange, 7 U.S.C.§ 2(e); 17", "paragraph_id": "para_959" }, { "text": "C.F.R. § 38.1, 38.3(a); the UIGEA excludes any transaction", "paragraph_id": "para_960" }, { "text": "conducted on Commission-designated exchanges because", "paragraph_id": "para_961" }, { "text": "those transactions are subject to the Commission’s", "paragraph_id": "para_962" }, { "text": "“exclusive jurisdiction,” 7 U.S.C. § 2(a)(1)(A); the UIGEA", "paragraph_id": "para_963" }, { "text": "displaces IGRA as to event contracts; therefore, in Kalshi’s", "paragraph_id": "para_964" }, { "text": "telling, if the Tribes “have any ability to challenge the", "paragraph_id": "para_965" }, { "text": "C[ommission’s] regulation of Kalshi—which is highly", "paragraph_id": "para_966" }, { "text": "doubtful—[t]he proper vehicle to make such a challenge", "paragraph_id": "para_967" }, { "text": "would be via an Administrative Procedure (APA) action", "paragraph_id": "para_968" }, { "text": "against the C[ommission], not an IGRA lawsuit against", "paragraph_id": "para_969" }, { "text": "Kalshi.” Taken to its logical conclusion, this carveout would", "paragraph_id": "para_970" }, { "text": "leave Kalshi’s activity on Indian lands outside the federal", "paragraph_id": "para_971" }, { "text": "courts’ reach.", "paragraph_id": "para_972" }, { "text": "32 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_973" }, { "text": "Kalshi’s argument confers upon the UIGEA a displacing", "paragraph_id": "para_974" }, { "text": "effect that Congress expressly denied it. The statute", "paragraph_id": "para_975" }, { "text": "disavows any intent to “alter[], limit[], or extend[]” existing", "paragraph_id": "para_976" }, { "text": "federal, state and tribal gaming regulations. 31 U.S.C.", "paragraph_id": "para_977" }, { "text": "§ 5361(b). It also specifically disavows any intent to", "paragraph_id": "para_978" }, { "text": "“alter[], supersed[e], or otherwise affect[] the application of", "paragraph_id": "para_979" }, { "text": "[IGRA]” in any civil “[p]roceedings” related to “Indian", "paragraph_id": "para_980" }, { "text": "lands.” Id. § 5365(b)(3)(A)–(B); accord id.", "paragraph_id": "para_981" }, { "text": "§ 5362(10)(B)(iii)(IV) (a wager does not constitute", "paragraph_id": "para_982" }, { "text": "“unlawful Internet gambling” if it “does not violate any", "paragraph_id": "para_983" }, { "text": "provision of [IGRA]”). We have also recognized that “the", "paragraph_id": "para_984" }, { "text": "UIGEA definitions are not meant to ‘alter[ ]’ or ‘limit[ ]’", "paragraph_id": "para_985" }, { "text": "other laws.” Assad, 2026 WL 2543846, at *9 n.4. Kalshi’s", "paragraph_id": "para_986" }, { "text": "explanation would thus delete a key aspect of the UIGEA,", "paragraph_id": "para_987" }, { "text": "which preserves civil proceedings under IGRA. See Duncan", "paragraph_id": "para_988" }, { "text": "v. Walker, 533 U.S. 167, 174 (2001) (“It is our duty to give", "paragraph_id": "para_989" }, { "text": "effect, if possible, to every clause and word of a statute.”", "paragraph_id": "para_990" }, { "text": "(citation modified)).", "paragraph_id": "para_991" }, { "text": "The district court rejected the Tribes’ claim that Section", "paragraph_id": "para_992" }, { "text": "5361(b) prevented application of the UIGEA because they", "paragraph_id": "para_993" }, { "text": "had “not identified any Tribal-State compact provision", "paragraph_id": "para_994" }, { "text": "regulating gambling which the UIGEA, as applied here,", "paragraph_id": "para_995" }, { "text": "alters, limits, or extends.” As we have explained, however,", "paragraph_id": "para_996" }, { "text": "a carveout for Commission-regulated transactions from the", "paragraph_id": "para_997" }, { "text": "definition of “bet or wager” would alter or limit the effects", "paragraph_id": "para_998" }, { "text": "of the compact and procedures on the Tribes’ land. The", "paragraph_id": "para_999" }, { "text": "UIGEA thus curtails its own applicability.", "paragraph_id": "para_1000" }, { "text": "Our decision in California v. Iipay Nation of Santa", "paragraph_id": "para_1001" }, { "text": "Ysabel supports this conclusion. In that case, a tribe argued", "paragraph_id": "para_1002" }, { "text": "that internet bingo, a class II game, was conducted on Indian", "paragraph_id": "para_1003" }, { "text": "lands because the servers and equipment were located on the", "paragraph_id": "para_1004" }, { "text": "reservation, even though California patrons placed wagers", "paragraph_id": "para_1005" }, { "text": "from outside tribal lands. Iipay, 898 F.3d at 961, 967. We", "paragraph_id": "para_1006" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 33", "paragraph_id": "para_1007" }, { "text": "rejected that reasoning because “the act of placing a bet or", "paragraph_id": "para_1008" }, { "text": "wager” is equivalent to the act of “gambling in the poker", "paragraph_id": "para_1009" }, { "text": "hall.” Id. at 966–67 (citation modified). That same principle", "paragraph_id": "para_1010" }, { "text": "favors the Tribes here. If a patron on Indian lands uses", "paragraph_id": "para_1011" }, { "text": "Kalshi to stake money on a sports outcome, the wagering act", "paragraph_id": "para_1012" }, { "text": "occurs on Indian lands, even if Kalshi’s infrastructure", "paragraph_id": "para_1013" }, { "text": "operates elsewhere.", "paragraph_id": "para_1014" }, { "text": "We thus reject the view that “IGRA . . . cover[s] Class", "paragraph_id": "para_1015" }, { "text": "III gaming activities that take place exclusively within Tribal", "paragraph_id": "para_1016" }, { "text": "lands,” whereas the “UIGEA . . . appl[ies] to cover", "paragraph_id": "para_1017" }, { "text": "interstate (or state-to-Indian-lands and vice versa) gaming", "paragraph_id": "para_1018" }, { "text": "transactions via the internet.” That reading cannot bear the", "paragraph_id": "para_1019" }, { "text": "weight that Kalshi places upon it. If Kalshi’s sports event", "paragraph_id": "para_1020" }, { "text": "contracts are not “bets or wagers” for UIGEA purposes", "paragraph_id": "para_1021" }, { "text": "because they are on-DCM (as opposed to online)", "paragraph_id": "para_1022" }, { "text": "transactions, then the UIGEA may not apply to them. But", "paragraph_id": "para_1023" }, { "text": "that conclusion says nothing about whether the same", "paragraph_id": "para_1024" }, { "text": "contracts are “class III gaming activity” under IGRA when", "paragraph_id": "para_1025" }, { "text": "offered to users on Indian lands. IGRA applies to gaming", "paragraph_id": "para_1026" }, { "text": "that occurs at least partially on Indian lands, and UIGEA", "paragraph_id": "para_1027" }, { "text": "takes great pains to preserve IGRA’s reach. The best reading", "paragraph_id": "para_1028" }, { "text": "of these two interrelated statutes is that IGRA provides a", "paragraph_id": "para_1029" }, { "text": "cause of action to enjoin class III gaming activities", "paragraph_id": "para_1030" }, { "text": "conducted improperly and at least in part on Indian lands,", "paragraph_id": "para_1031" }, { "text": "while UIGEA governs payments connected to unlawful", "paragraph_id": "para_1032" }, { "text": "internet gambling.", "paragraph_id": "para_1033" }, { "text": "III. IGRA and the CEA", "paragraph_id": "para_1034" }, { "text": "The CEA’s jurisdictional provision states:", "paragraph_id": "para_1035" }, { "text": "The Commission shall have exclusive", "paragraph_id": "para_1036" }, { "text": "jurisdiction . . . with respect to accounts,", "paragraph_id": "para_1037" }, { "text": "agreements . . . and transactions involving", "paragraph_id": "para_1038" }, { "text": "34 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_1039" }, { "text": "swaps or contracts of sale of a commodity for", "paragraph_id": "para_1040" }, { "text": "future delivery . . . traded or executed on a", "paragraph_id": "para_1041" }, { "text": "contract market designated pursuant to", "paragraph_id": "para_1042" }, { "text": "section 7 of this title . . . . Except as", "paragraph_id": "para_1043" }, { "text": "hereinabove provided, nothing contained in", "paragraph_id": "para_1044" }, { "text": "this section shall (I) supersede or limit the", "paragraph_id": "para_1045" }, { "text": "jurisdiction at any time conferred on the", "paragraph_id": "para_1046" }, { "text": "Securities and Exchange Commission or", "paragraph_id": "para_1047" }, { "text": "other regulatory authorities under the laws of", "paragraph_id": "para_1048" }, { "text": "the United States or of any State, or", "paragraph_id": "para_1049" }, { "text": "(II) restrict the Securities and Exchange", "paragraph_id": "para_1050" }, { "text": "Commission and such other authorities from", "paragraph_id": "para_1051" }, { "text": "carrying out their duties and responsibilities", "paragraph_id": "para_1052" }, { "text": "in accordance with such laws. Nothing in this", "paragraph_id": "para_1053" }, { "text": "section shall supersede or limit the", "paragraph_id": "para_1054" }, { "text": "jurisdiction conferred on courts of the United", "paragraph_id": "para_1055" }, { "text": "States or any State.", "paragraph_id": "para_1056" }, { "text": "7 U.S.C. § 2(a)(1)(A).", "paragraph_id": "para_1057" }, { "text": "We recently held in KalshiEX v. Assad that Kalshi’s", "paragraph_id": "para_1058" }, { "text": "“sports event contracts are likely not swaps under the CEA.”", "paragraph_id": "para_1059" }, { "text": "See 2026 WL 2543846 at *15. Because the CEA’s exclusive", "paragraph_id": "para_1060" }, { "text": "jurisdiction only extends to certain “accounts,", "paragraph_id": "para_1061" }, { "text": "agreements . . . and transactions involving swaps or", "paragraph_id": "para_1062" }, { "text": "contracts of sale of a commodity for future delivery,” 7", "paragraph_id": "para_1063" }, { "text": "U.S.C. § 2(a)(1)(A), Kalshi’s argument that we lack", "paragraph_id": "para_1064" }, { "text": "jurisdiction over the Tribes’ IGRA claim fails at the outset. 9", "paragraph_id": "para_1065" }, { "text": "9 We also “have the authority” interpret the CEA and evaluate its reach.", "paragraph_id": "para_1066" }, { "text": "Assad, 2026 WL 2543846, at *6; see also Loper Bright Enters. v.", "paragraph_id": "para_1067" }, { "text": "Raimondo, 603 U.S. 369, 402 (2024) (“Congress expects courts to", "paragraph_id": "para_1068" }, { "text": "handle technical statutory questions.”). The Tribes are “not challenging", "paragraph_id": "para_1069" }, { "text": "any determination by the C[ommission] about Kalshi’s event contracts,”", "paragraph_id": "para_1070" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 35", "paragraph_id": "para_1071" }, { "text": "We note that we would be compelled to reverse even if", "paragraph_id": "para_1072" }, { "text": "Kalshi’s event contracts were categorized as swaps. In", "paragraph_id": "para_1073" }, { "text": "holding that the CEA preserves a private right of action, the", "paragraph_id": "para_1074" }, { "text": "Supreme Court has explained that this jurisdictional", "paragraph_id": "para_1075" }, { "text": "provision was “intended only to consolidate federal", "paragraph_id": "para_1076" }, { "text": "regulation of commodity futures trading in the Commission”", "paragraph_id": "para_1077" }, { "text": "and to “separate the functions of the Commission from those", "paragraph_id": "para_1078" }, { "text": "of the [SEC] and other regulatory agencies.” Merrill Lynch,", "paragraph_id": "para_1079" }, { "text": "Pierce, Fenner & Smith, Inc. v. Curran, 456 U.S. 353, 386–", "paragraph_id": "para_1080" }, { "text": "87 (1982); cf. CFTC v. Schor, 478 U.S. 833, 848–55 (1986)", "paragraph_id": "para_1081" }, { "text": "(recognizing a waivable “personal right” to an Article III", "paragraph_id": "para_1082" }, { "text": "tribunal). The phrase “exclusive jurisdiction” is not a broad", "paragraph_id": "para_1083" }, { "text": "grant to the Commission of control over all commodities-", "paragraph_id": "para_1084" }, { "text": "related matters to the exclusion of all other federal laws.", "paragraph_id": "para_1085" }, { "text": "The jurisdictional provision’s own language confirms", "paragraph_id": "para_1086" }, { "text": "that its reach is limited. By its terms, “nothing” in Section 2", "paragraph_id": "para_1087" }, { "text": "of the CEA “supersede[s] or limit[s]” federal courts’", "paragraph_id": "para_1088" }, { "text": "jurisdiction. 7 U.S.C. § 2(a)(1)(A). The provision", "paragraph_id": "para_1089" }, { "text": "juxtaposes the Commission with the SEC and “other", "paragraph_id": "para_1090" }, { "text": "regulatory authorities.” Id. The phrase “other regulatory", "paragraph_id": "para_1091" }, { "text": "authorities” immediately follows the reference to “the", "paragraph_id": "para_1092" }, { "text": "Securities and Exchange Commission” and is best", "paragraph_id": "para_1093" }, { "text": "understood in relation to that term. The interpretive of canon", "paragraph_id": "para_1094" }, { "text": "of ejusdem generis counsels that general words like “other", "paragraph_id": "para_1095" }, { "text": "regulatory authorities” embrace only objects similar to the", "paragraph_id": "para_1096" }, { "text": "specific terms that precede them. See Yates v. United States,", "paragraph_id": "para_1097" }, { "text": "574 U.S. 528, 545–46 (2015). In this context, the best", "paragraph_id": "para_1098" }, { "text": "reading of “exclusive” is a narrower one, describing", "paragraph_id": "para_1099" }, { "text": "jurisdiction exclusive of “all others, not just the SEC,”", "paragraph_id": "para_1100" }, { "text": "but rather “pursuing enforcement of [IGRA] about what qualifies as”", "paragraph_id": "para_1101" }, { "text": "class III gaming. Assad, 2026 WL 2543846, at *6.", "paragraph_id": "para_1102" }, { "text": "36 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_1103" }, { "text": "Assad, 2026 WL 2543846, at *7, but not jurisdiction", "paragraph_id": "para_1104" }, { "text": "exclusive of the federal courts or all federal law.", "paragraph_id": "para_1105" }, { "text": "The CEA is also selective as to the application of other", "paragraph_id": "para_1106" }, { "text": "federal laws to products traded on a DCM. It “supersede[s]", "paragraph_id": "para_1107" }, { "text": "and preempt[s] the application of any State or local law that", "paragraph_id": "para_1108" }, { "text": "prohibits or regulates gaming.” 7 U.S.C. § 16(e)(2)", "paragraph_id": "para_1109" }, { "text": "(emphasis added). It does not, however, “supersede or", "paragraph_id": "para_1110" }, { "text": "preempt” “the application of any Federal or State statute” to", "paragraph_id": "para_1111" }, { "text": "any transaction “that is not conducted on or subject to the", "paragraph_id": "para_1112" }, { "text": "rules of a registered entity or exempt board of trade.” Id.", "paragraph_id": "para_1113" }, { "text": "§ 16(e)(1)(B)(i) (emphasis added). True, Congress spoke", "paragraph_id": "para_1114" }, { "text": "clearly to supersede and preempt “state regulation of swaps", "paragraph_id": "para_1115" }, { "text": "that are ‘traded or executed’ on a DCM.” Assad, 2026 WL", "paragraph_id": "para_1116" }, { "text": "2543846, at *7. But it did not say clearly that the CEA", "paragraph_id": "para_1117" }, { "text": "displaces other federal statutes, much less IGRA’s separate", "paragraph_id": "para_1118" }, { "text": "regulation of gambling on Indian lands—a subject on which", "paragraph_id": "para_1119" }, { "text": "Congress has spoken “repeatedly, deliberately, and", "paragraph_id": "para_1120" }, { "text": "specifically.” Id. at *9 (citing 25 U.S.C. §§ 2701–2721).", "paragraph_id": "para_1121" }, { "text": "Because IGRA and the CEA are not “irreconcilable,” we", "paragraph_id": "para_1122" }, { "text": "must harmonize them. J.E.M. Ag Supply, Inc. v. Pioneer Hi-", "paragraph_id": "para_1123" }, { "text": "Bred Int’l, Inc., 534 U.S. 124, 141–45 (2001).", "paragraph_id": "para_1124" }, { "text": "In so doing, we conclude that the two statutes simply", "paragraph_id": "para_1125" }, { "text": "address two different questions. The CEA gives the", "paragraph_id": "para_1126" }, { "text": "Commission “exclusive” jurisdiction over covered", "paragraph_id": "para_1127" }, { "text": "derivatives trading on designated contract markets. IGRA", "paragraph_id": "para_1128" }, { "text": "governs class III gaming activity located on Indian lands.", "paragraph_id": "para_1129" }, { "text": "The former statute may determine when a contract can trade", "paragraph_id": "para_1130" }, { "text": "on a DCM. It does not determine whether the same", "paragraph_id": "para_1131" }, { "text": "transaction, when offered to users on Indian lands, satisfies", "paragraph_id": "para_1132" }, { "text": "IGRA’s separate requirements. Kalshi’s “exclusive", "paragraph_id": "para_1133" }, { "text": "jurisdiction” argument thus proves too much. We find it", "paragraph_id": "para_1134" }, { "text": "implausible that Congress took “a wrecking ball to all sports", "paragraph_id": "para_1135" }, { "text": "gambling regulations built up over decades by federal, state,", "paragraph_id": "para_1136" }, { "text": "BLUE LAKE RANCHERIA V. KALSHI, INC. 37", "paragraph_id": "para_1137" }, { "text": "and tribal governments when it amended the CEA to add the", "paragraph_id": "para_1138" }, { "text": "definition of swap.” Assad, 2026 WL 2543846, at *15.", "paragraph_id": "para_1139" }, { "text": "Section 2 of the CEA consolidates federal agency regulation", "paragraph_id": "para_1140" }, { "text": "of covered transactions in the Commission, but it does not", "paragraph_id": "para_1141" }, { "text": "create a roving exemption from every other federal statute", "paragraph_id": "para_1142" }, { "text": "that may apply to the same conduct for a different reason.", "paragraph_id": "para_1143" }, { "text": "For example, the fact that market activity is regulated by the", "paragraph_id": "para_1144" }, { "text": "SEC does not prevent application of the antitrust laws. Even", "paragraph_id": "para_1145" }, { "text": "where conduct lies in the heartland of an expert federal", "paragraph_id": "para_1146" }, { "text": "regulator’s authority, another federal statute is displaced", "paragraph_id": "para_1147" }, { "text": "only when the two are “clearly incompatible.” Credit Suisse", "paragraph_id": "para_1148" }, { "text": "Sec. (USA) LLC v. Billing, 551 U.S. 264, 275 (2007).", "paragraph_id": "para_1149" }, { "text": "In short, the CEA may grant the Commission sole sway", "paragraph_id": "para_1150" }, { "text": "over its own field, but it neither negates IGRA nor bars", "paragraph_id": "para_1151" }, { "text": "federal courts from hearing a claim under it.", "paragraph_id": "para_1152" }, { "text": "IV. The Lanham Act10", "paragraph_id": "para_1153" }, { "text": "To succeed on their Lanham Act claims, the Tribes must", "paragraph_id": "para_1154" }, { "text": "satisfy five elements, one of which is a “false or misleading", "paragraph_id": "para_1155" }, { "text": "representation of fact.” 15 U.S.C. § 1125(a)(1). The district", "paragraph_id": "para_1156" }, { "text": "court correctly explained that the “Sports Betting Legal in", "paragraph_id": "para_1157" }, { "text": "all 50 States on Kalshi” advertisement was an inactionable", "paragraph_id": "para_1158" }, { "text": "“[s]tatement[] of opinion” about the legality of Kalshi’s", "paragraph_id": "para_1159" }, { "text": "products. We have previously held that “[a]bsent a clear and", "paragraph_id": "para_1160" }, { "text": "10 We assume without deciding that the Tribes’ interests “fall within the", "paragraph_id": "para_1161" }, { "text": "zone of interests protected by” the Lanham Act, and that they therefore", "paragraph_id": "para_1162" }, { "text": "have a cause of action under the Act. Lexmark Int’l, Inc. v. Static Control", "paragraph_id": "para_1163" }, { "text": "Components, Inc., 572 U.S. 118, 129 (2014) (citation omitted); see also", "paragraph_id": "para_1164" }, { "text": "Vericool World, LLC v. Igloo Prods. Corp., 175 F.4th 1045, 1052 n.2", "paragraph_id": "para_1165" }, { "text": "(9th Cir. 2026) (the zone of interests inquiry, “sometimes referred to as", "paragraph_id": "para_1166" }, { "text": "‘Lanham Act standing,’” asks only “whether there is ‘a cause of action", "paragraph_id": "para_1167" }, { "text": "under the statute’” and need not be resolved before “affirm[ing]", "paragraph_id": "para_1168" }, { "text": "summary judgment on the merits” (quoting Lexmark, 572 U.S. at 128)).", "paragraph_id": "para_1169" }, { "text": "38 BLUE LAKE RANCHERIA V. KALSHI, INC.", "paragraph_id": "para_1170" }, { "text": "unambiguous ruling from a court or agency of competent", "paragraph_id": "para_1171" }, { "text": "jurisdiction, statements by laypersons that purport to", "paragraph_id": "para_1172" }, { "text": "interpret the meaning of a statute or regulation are opinion", "paragraph_id": "para_1173" }, { "text": "statements, and not statements of fact.” Coastal Abstract", "paragraph_id": "para_1174" }, { "text": "Serv., Inc. v. First Am. Title Ins. Co., 173 F.3d 725, 731 (9th", "paragraph_id": "para_1175" }, { "text": "Cir. 1999). The legality of Kalshi’s products remains", "paragraph_id": "para_1176" }, { "text": "unsettled, and that state of affairs forecloses a viable Lanham", "paragraph_id": "para_1177" }, { "text": "Act claim. See, e.g., Assad, 2026 WL 2543846, at *15;", "paragraph_id": "para_1178" }, { "text": "Flaherty, 172 F.4th at 229; Schuler, 2026 WL 1295806, at", "paragraph_id": "para_1179" }, { "text": "*3; Martin, 793 F. Supp. 3d at 678; Williams, 2026 WL", "paragraph_id": "para_1180" }, { "text": "2017466, at *6–9. We affirm the district court’s refusal to", "paragraph_id": "para_1181" }, { "text": "enjoin Kalshi’s advertisement.", "paragraph_id": "para_1182" }, { "text": "V. The Remaining Preliminary Injunction Factors", "paragraph_id": "para_1183" }, { "text": "As we have reiterated time and again, likelihood of", "paragraph_id": "para_1184" }, { "text": "success on the merits is the most significant factor in", "paragraph_id": "para_1185" }, { "text": "evaluating a motion for preliminary injunction. Because the", "paragraph_id": "para_1186" }, { "text": "Tribes are likely to prevail on their claims under IGRA, we", "paragraph_id": "para_1187" }, { "text": "remand as to that claim with instructions “to reach the", "paragraph_id": "para_1188" }, { "text": "remaining Winter factors in the first instance.” Geo Grp.,", "paragraph_id": "para_1189" }, { "text": "Inc. v. Newsom, 50 F.4th 745, 763 (9th Cir. 2022) (en banc)", "paragraph_id": "para_1190" }, { "text": "(citation omitted).", "paragraph_id": "para_1191" }, { "text": "AFFIRMED in part, REVERSED in part, and", "paragraph_id": "para_1192" }, { "text": "REMANDED.11", "paragraph_id": "para_1193" }, { "text": "The parties shall bear their own costs on appeal.", "paragraph_id": "para_1194" }, { "text": "11 Kalshi’s motion to file a supplemental brief, Dkt. 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