Oklahoma tribal town sues Kalshi to block its planned prediction market app

WETUMKA, Okla. (Nov. 9) — A small Oklahoma tribe is suing the prediction market company Kalshi, trying to undo a deal that would let the tribe run its own betting-style app, Oklahoma Voice reported.

The Alabama-Quassarte Tribal Town, which has about 400 members and is based in Wetumka, filed the complaint along with Samuel Marshall Jr., who says he is the tribe's rightful chief. It names Kalshi, its CEO Tarek Mansour, Wilson Yargee and Michael Stopp. The case was filed Oct. 30 in Muscogee (Creek) Nation District Court, according to Mvskoke Media.

At the center is a leadership fight. Kalshi announced in October that the tribal town would launch PokkeTrades, a prediction market app powered by Kalshi, where users can trade on outcomes like sports, elections and weather. The deal was signed by Yargee, who says he is chief. The lawsuit says Yargee was removed in 2021, that the tribe's governing committee never approved or ratified the deal, and that it shouldn't be bound by it. The Bureau of Indian Affairs currently lists both men as chief.

The complaint asks for a temporary restraining order, damages and a court order declaring the tribe isn't bound by the PokkeTrades agreement. It also leans on an 1825 Creek Nation law against "bad talk" about the chief, asking the court to recognize a civil claim against people it says misrepresented their roles, Oklahoma Voice reported.

Kalshi stands by the deal. Spokesperson Jacki McGavick said the tribe's governing council signed off on it. Stopp, who works as Yargee's vice president of economic development, said in a statement for himself and Yargee that they expect the case to be thrown out, as earlier leadership suits from Marshall's side were.

The deal has drawn attention because many Oklahoma tribes see prediction markets as a threat to their gaming business. The Muscogee (Creek) Nation joined more than 140 other tribes on a court brief opposing Kalshi in a separate New Jersey case, Mvskoke Media reported.