The Tunica-Biloxi Tribe of Louisiana has joined forces with prediction-market operator KalshiEX LLC to introduce a prediction-market trading venture. This partnership has led the tribe to diverge from other Native American gaming organizations that are challenging Kalshi’s sports-event contracts.
The tribe has announced the launch of SaltTrade Derivatives, a prediction-market trading app powered by Kalshi’s infrastructure. This platform allows users to trade event contracts related to real-world events, such as sports and weather. Kalshi will provide access to its exchange and liquidity pool.
Tunica-Biloxi Chairman Marshall Pierite expressed enthusiasm about the partnership, stating that it represents the type of opportunity Indian Country should pursue. He believes that this venture could be an additional revenue source for tribes lacking major gaming operations or access to lucrative gaming markets. Pierite, who began exploring prediction markets as a potential business opportunity eight to nine months ago, initiated contact with Kalshi through a mutual acquaintance.
Describing the partnership as cutting-edge, Pierite envisions a plethora of opportunities that can positively impact tribal citizens’ lives. Under this partnership, SaltTrade will seamlessly integrate into Kalshi’s existing exchange, enabling its traders to tap into the same global liquidity pool as other Kalshi participants. Both companies will share revenue generated from this collaboration.
This endeavor comes shortly after the Commodity Futures Trading Commission (CFTC) issued a conditional no-action letter covering passive software providers that connect users to regulated derivatives markets. Kalshi contends that it operates a federally regulated derivatives platform, with its products classified as “event contracts.”
Kalshi CEO Tarek Mansour believes that this partnership demonstrates the coexistence of prediction markets and tribal economic development. Mansour asserts that prediction markets and tribal economic development do not have to be in conflict. He advocates for more avenues for economic self-determination in Indian Country, rather than fewer.
In contrast, other tribal gaming groups have opposed Kalshi’s activities. A federal appeals court panel recently prevented Kalshi from offering contracts within the territories of two California tribes that had not authorized prediction markets on their lands. Additionally, representatives from 17 Native American tribes met with the CFTC last week to voice concerns about how the agency’s rule-making could impact tribal sovereignty and gaming operations.
The California Nations Indian Gaming Association (CNIGA) criticized the Tunica-Biloxi Tribe’s decision, stating that it legitimizes a business model contested by other tribal nations and states. Despite this criticism, the tribe remains steadfast in its commitment to innovation and economic growth. The Tunica-Biloxi Tribe owns and operates Paragon Casino Resort in Marksville, Louisiana, featuring slots, table games, and a sportsbook.
Mansour emphasizes that the debate should not pit prediction markets against tribes. Instead, he believes that a regulated national infrastructure and tribal entrepreneurship can evolve collectively, with one not necessitating the downfall of the other.
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