Connecticut’s two federally recognized tribes are asking a federal judge to let them join the government’s legal fight over sports prediction markets, arguing the outcome could reshape gambling oversight and threaten a major stream of tribal income.
The Mohegan Tribe and the Mashantucket Pequot Tribal Nation filed a motion Tuesday (May 26) in the U.S. District Court seeking permission to intervene as defendants in a lawsuit brought earlier this year by the U.S. Department of Justice and the Commodity Futures Trading Commission against Connecticut regulators and state officials.
Federal agencies sued Connecticut in April after state regulators ordered companies including Kalshi, Crypto.com and Robinhood Derivatives to stop offering sports-event contracts in the state. Connecticut officials argued the products function as unauthorized sports betting under state gaming laws.
The tribes told the court those contracts closely resemble traditional wagers already governed through tribal gaming agreements and Connecticut regulations.
“The Tribes’ right to regulate and operate gaming is not incidental; it is the product of federal law, sovereign government-to-government agreements, state law, and decades of investment designed to promote tribal self-sufficiency and strong tribal governments,” the tribes wrote in their memorandum supporting intervention.
Connecticut tribes battle against prediction markets
States are disputing whether prediction market companies can legally offer contracts tied to sporting outcomes under federal commodities law while avoiding state gambling rules.
The tribes argued that firms such as Kalshi and Crypto.com are presenting wagers that are “indistinguishable” from sportsbook betting already operating legally in Connecticut. Their filing included examples comparing bets available through tribal sportsbook apps with contracts offered on prediction market platforms.
“Prediction markets are currently offering wagers in Connecticut that amount to traditional sports betting in all material respects,” the tribes wrote.
Connecticut’s sports betting system was established through agreements reached in 2021 that granted the tribes rights connected to online casino gaming and statewide online sports wagering. According to court filings, bettors have placed more than $7.4 billion in wagers since legal sports betting launched in the state, producing roughly $773 million in operator revenue.
The filing said sports betting revenue reached $265.9 million during 2025 alone and helps fund tribal services including healthcare, education, housing and public safety programs.
Governor Ned Lamont and state lawmakers have also moved to tighten restrictions around prediction markets. Earlier this year, Connecticut advanced legislation aimed at clarifying that sports-event contracts fall under the state’s gaming laws rather than commodities regulations.
The legal battle has drawn national attention as several states challenge prediction market operators while the CFTC and Justice Department argue federal law governs the contracts. Connecticut officials support the tribes’ request to join the case, while federal agencies oppose it.
The tribes submitted a proposed response rejecting many federal claims and disputing the argument that sports-event contracts qualify as swaps under commodities law.
Featured image: The Mashantucket Pequot Tribal Nation via X / Mohegan Tribe via site
