Kalshi was barred by a federal appeals court from offering sports event contracts on the lands of two California tribes, its second legal setback in less than a month. The 9th U.S. Circuit Court of Appeals ruled 3-0 that Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians deserved a preliminary injunction because Kalshi’s contracts likely violated the Indian Gaming Regulatory Act (federal tribal gaming law) and the tribes’ gaming ordinances. The decision deepens a national dispute over whether prediction markets, platforms for trading outcomes of future events, should be regulated as gambling or as federally licensed financial markets. It also threatens Robinhood Markets’ plan to route customers’ event-contract orders through Kalshi. Kalshi may appeal, while Robinhood is evaluating its legal options. The case returns to U.S. District Judge Jacqueline Scott Corley, who denied an injunction last November. The CFTC (U.S. derivatives regulator) claims exclusive oversight of such markets, but 27 states and Washington, D.C., backed the tribes’ appeal, and many analysts expect the U.S. Supreme Court eventually to address the regulatory conflict.