Home Tribal coalition joins Robinhood lawsuit in Massachusetts gaming regulation battle

Tribal coalition joins Robinhood lawsuit in Massachusetts gaming regulation battle

A coalition of tribal governments and gaming associations has decided to get involved in the ongoing legal fight between trading platform Robinhood Derivatives, LLC and the Massachusetts Gaming Commission. They argue that the case could have major effects on tribal sovereignty and how gaming is regulated across the country.

In a filing submitted on Thursday (October 16) and reviewed by ReadWrite, the Indian Gaming Association, the National Congress of American Indians, and six other tribal organizations, along with 17 federally recognized tribes, filed an amicus curiae brief in support of the Massachusetts Gaming Commission and Attorney General Andrea Joy Campbell.

The group said they share “a strong interest in this case because of its potential to have a significant impact on their or their member tribes’ sovereign rights regarding gaming on Indian lands.”

Robinhood filed its lawsuit against the MGC and Campbell after Campbell brought a state court case against Kalshi, which powers the prediction markets hub. The earlier case claimed Kalshi’s sports event contracts broke Massachusetts gaming laws. Since Robinhood offers Kalshi’s sports-related contracts on its trading platform, it responded by filing its own federal lawsuit, arguing that the state’s actions put its business at risk.

Tribal group accuses Robinhood of impeding on sovereign rights in Massachusetts

The tribal brief accuses Robinhood of having “unlawfully and unfairly entered into the gaming market,” arguing that its “so-called sports event contracts” are “expressly prohibited by the [Commodity Exchange Act] and Commodity Futures Trading Commission’s own regulations.” The brief warns that by operating under the guise of commodity trading, Robinhood “impedes tribes’ inherent sovereign right to regulate gaming activity on Indian lands.”

The tribes argue that any sports betting that takes place on tribal land falls under the authority of the Indian Gaming Regulatory Act, or IGRA. “Indian tribes are sovereign nations with primary jurisdiction over their lands and the activities occurring on their lands,” the brief states, adding that “both the United States Supreme Court and Congress have recognized tribes’ inherent and exclusive sovereign right to conduct and regulate gaming on their Indian lands.”

They asked the court to deny Robinhood’s request for a preliminary injunction and to throw out the lawsuit entirely. It argues that Robinhood’s interpretation of federal law “would represent unheralded power for the CFTC and private entities to authorize gaming on Indian lands under a long-extant statute,” a position the tribes say goes against decades of established law and threatens economic stability.

The brief adds that Robinhood’s activities “constitute Class III gaming” under IGRA and that “each bet Robinhood facilitates on Indian lands violates IGRA, undermines tribal sovereignty, and reduces tribal gaming revenue and government funding.”

Featured image: Robinhood / Canva

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Suswati Basu
News Editor

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC. As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…