Lawsuits over Kalshi have prompted a New Mexico lawmaker to call for negotiations on the state’s tribal gaming compact, with a proposal to legalize statewide online sports betting and collect taxes from the activity.
Rep. John Block (R-Alamogordo) made the request last week during the Legislature’s interim Indian Affairs Committee meeting after several New Mexico tribes and pueblos, together with Attorney General Raúl Torrez, filed lawsuits in state and federal courts against the online prediction market platform.
The lawsuits allege Kalshi is illegally enabling sports betting in New Mexico in violation of state law and the intertribal gaming compact. The tribal lawsuit against Kalshi remains pending, according to court records.
Last week, the federal Commodity Futures Trading Commission filed a lawsuit against Torrez seeking to prevent New Mexico from regulating Kalshi under state law. The commission argued that it has sole jurisdiction to regulate online gaming platforms.
The New Mexico Department of Justice argued in previous court filings that state law clearly allows the attorney general to sue Kalshi.
Proposal targets online wagering framework
During the committee meeting, Block said the 17 tribes and pueblos participating in New Mexico’s gaming compact should reopen the agreement to permit statewide online sports betting because the activity is already taking place. He said a revised compact could allow the collection of taxes and fees from online wagering.
According to Block, New Mexico is missing “tens of millions” of dollars in revenue from online sports gambling, which the American Gaming Association says is legal in 33 states.
“It would be really nice, at least, to get some more revenue for people, because if people are already here operating in the state illegally online, then that robs you, it robs us, it robs every single New Mexican of that tax revenue,” Block said.
Sports betting in New Mexico is currently permitted only through in-person wagering at tribal casinos.
Compact changes would require multiple approvals
Nelva Cervantes, General Counsel for the Mescalero Apache Tribe, addressed the committee on the state’s gambling laws. The Mescalero Apache Tribe is one of the tribal governments that filed suit against Kalshi.
Cervantes told Block she is unaware of any current effort to reopen the gaming compact, which is scheduled to expire in 2037.
Reopening negotiations would require approval from the New Mexico governor and tribal government members. Once negotiated, the compact would also require approval from the New Mexico Legislature and the US Interior Department secretary.
“Mescalero, at this point, has not discussed reopening the compact for negotiation, but it is definitely something that we’re looking at, and we are concerned about,” she said regarding online sports gambling.
New Mexico tribes and pueblos use gaming revenue to fund services including education, while providing a portion of those proceeds to the state.
According to the New Mexico Gaming Control Board, tribal casinos generated approximately $230 million in net revenue during the first quarter of 2026. About $22 million of that total was transferred to the state’s general fund.