New Mexico Tribes Demand Action Against Kalshi
Mescalero Apache Reservation Vice President Duane Duffy urged New Mexico’s Attorney General and Legislature to crack down on online platforms like Kalshi, which he accuses of offering illegal sports betting under the guise of commodity futures trading.
As reported by SourceNM, Speaking at the interim Economic & Rural Development & Policy Committee at the tribe’s Inn of the Mountain Gods casino, Duffy warned that these platforms threaten tribal gaming compacts and the $219 million tribal gaming market, which generated $20 million for the state in Q1 2025.
Threat to Tribal Sovereignty
New Mexico’s 14 tribes and pueblos operate under gaming compacts that prohibit unauthorized internet gaming, including online sports betting, which remains illegal in the state.
Duffy highlighted that Kalshi’s “event contracts” on sports outcomes mimic traditional sports betting, violating the 2015 compact, effective until 2037, which mandates renegotiation if internet gaming is authorized.
“These companies are wiggling their way into New Mexico, taking revenue out of state,” Duffy said, noting the Inn of the Mountain Gods’ $15 million Q1 contribution as the tribe’s primary revenue source, especially as its ski resort falters due to declining snowpack.
Regulatory Loopholes and Federal Concerns
Kalshi, regulated by the Commodity Futures Trading Commission (CFTC), claims its sports contracts are financial derivatives, not gambling. However, Arizona’s gaming director, in a June 2025 letter to the CFTC, argued there’s “no meaningful difference” between Kalshi’s contracts and sportsbook bets, a view echoed by seven states issuing cease-and-desist letters.
Tribal groups, including the Arizona Indian Gaming Association, have also petitioned the CFTC, asserting that Kalshi’s $500 million in 2025 March Madness trades infringes on their sovereignty under the Indian Gaming Regulatory Act.
New Mexico’s Attorney General’s office, in communication with Sandia Pueblo, is monitoring related lawsuits but has not issued a formal opinion.
Tribal casinos are critical to New Mexico’s economy. Duffy emphasized that platforms like Kalshi divert revenue from tribes, which lack mechanisms to offer online gaming themselves.
He plans to lobby lawmakers before the January 2026 session for legislative solutions, potentially including lawsuits or gubernatorial intervention, to protect the $70 million in annual state revenue from tribal gaming.
Senator Bill Sharer expressed reluctance to reopen compact negotiations, asking, “What’s the solution? We can’t stop the internet.”
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