The Alabama-Quassarte Tribal Town has sued Kalshi over a proposed prediction market app, saying that the agreement behind the project was approved by someone without authority to represent the tribe. The lawsuit seeks to block the launch of PokkeTrades and questions the legality of the business deal.
Alabama-Quassarte Leadership Battle Threatens Kalshi’s PokkeTrades Launch
The lawsuit was filed October 30 in Muscogee (Creek) Nation District Court. The lawsuit names defendants Kalshi, its CEO and co-founder Tarek Mansour, Wilson Yargee, and Michael Stopp. The lawsuit was brought by the tribal town and Samuel Marshall Jr., who says he is the tribe’s rightful chief, as reported by The Oklahoman.
The dispute revolves around a deal between Kalshi and Yargee for building PokkeTrades. The app is likely to operate on Kalshi’s prediction market infrastructure, enabling users to trade contracts tied to various events. The partnership was announced on October 7, with a launch scheduled for November.
The Marshall administration says Yargee did not have the authority to sign the deal. The complaint claims the tribal governing committee never approved or formally ratified the deal. The plaintiffs also say that Yargee was removed from office in 2021 and Marshall took over leadership.
The leadership fight is unresolved. Both men say they won reelection in 2025, but the Bureau of Indian Affairs recognizes both as chiefs and acknowledges the disagreement. Yargee denies his ouster, saying he was authorized to negotiate with Kalshi.
The lawsuit also alleges the partnership has already damaged the tribe’s reputation and business interests. Marshall’s administration says it has devoted time and resources to correcting public statements about who can legally represent the tribal town. The complaint also says the PokkeTrades announcement hurt existing business relationships and led to the tribe being excluded from the National Congress of American Indians annual convention in Palm Springs.
Kalshi’s Disputes with Tribal Gaming Groups Spread Across the US
The plaintiffs are asking for an emergency restraining order to halt the launch of PokkeTrades. They also want the defendants to publicly withdraw their statements about the leadership of the tribe and recognize Marshall as the rightful chief of the tribe. The complaint charges fraud, false advertising, and civil conspiracy and asks for compensatory and punitive damages.
Kalshi has denied the allegations and said the agreement is valid. A tribal council approved the partnership and a signed contract is in place, said Jacki McGavick, a spokeswoman.
The leadership struggle has already given rise to a number of legal cases. In a previous action in the Muscogee (Creek) Nation court, the court dismissed the case because the parties had not waived sovereign immunity. However, in another case in Okmulgee County, Yargee was stripped of authority to sign for the tribe on its bank accounts.
The controversy also comes as opposition to prediction markets from Native American communities grows. Several tribes have complained about Kalshi and other operators, saying that sports contracts are like gambling and threaten tribal gaming rights.
In September, the 6th US Circuit Court of Appeals said Ohio and Tennessee could apply their gambling laws to Kalshi’s event contracts. The company has challenged the approach, saying federal financial regulation should prevail.
Relations between Kalshi and tribal gaming representatives have also soured after failed attempts by CEO Tarek Mansour to develop closer ties with industry leaders. Since then, tribal groups have stepped up their legal and political efforts to challenge prediction market operators.
In a separate development, a federal judge recently blocked Kalshi from offering sports-event contracts on certain tribal lands in California in ongoing litigation brought by Blue Lake Rancheria.