Kalsi fended off legal challenges from three California tribes and allowed the prediction market platform to continue offering sporting event contracts.
summary
- A federal judge denied a preliminary injunction sought by three tribes, allowing KalshiEX LLC to continue offering contracts for sporting events on tribal lands.
- Kalsi recently filed a federal lawsuit against New York regulators in response to the cease and desist order, arguing that its contracts are subject to federal CFTC oversight rather than state gaming law.
- Despite legal pressure in multiple states, Kalsi continues to attract significant VC capital. The company’s valuation is currently estimated at $10 billion to $12 billion.
U.S.-based prediction market platform Kalsi Inc. has successfully fended off a preliminary injunction sought by three California tribes to block its sporting event contracts on tribal lands, Bloomberg Law reported on Tuesday.
The lawsuit was filed by Blue Lake Rancheria, Chicken Ranch Rancheria of Maewuk Indians, and Picayune Rancheria of Chukchansi Indians. The tribes argued that Kalsi’s contract constituted illegal gambling under the Indian Gaming Control Act and that the company’s marketing statements misrepresented the legality of sports betting.
U.S. District Judge Jacqueline Scott Cawley on Monday rejected the tribe’s motion, ruling that they had not demonstrated a likelihood of success based on their claims. The decision allows Kalushi’s affiliate company, Kalushi EX LLC, to continue offering and promoting sporting event contracts on tribal lands for the foreseeable future.
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Kalsi continues to attract venture capital backing as legal disputes continue
Carsi is also under legal pressure in New York, where state regulators issued a cease-and-desist order saying the company’s sporting event contracts amounted to unlicensed gambling. In response, the company recently filed a federal lawsuit seeking to halt enforcement, arguing that its marketplace is supervised by the federal CFTC rather than state gaming laws.
Despite these regulatory challenges across multiple states, investors continue to support Kalsi’s platform. The company recently raised $300 million in a funding round led by Andreessen Horowitz and Sequoia Capital, following a previous $185 million raise. Based on current discussions, Kalsi’s valuation could now be between $10 billion and $12 billion, indicating the VC’s strong confidence in the company’s long-term growth.
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