Connecticut’s Mohegan Tribe supports the state’s crackdown on prediction markets.
Department of Consumer Protection Commissioner Bryan T. Cafferelli ordered several platforms to cease operations in December. Prediction market firm Kalshi, however, later won a temporary restraining order to halt enforcement for now.
The Mohegan Tribal Gaming Authority has publicly come out in support of Cafferelli’s effort and called PMs illegal gambling.
“I think the two Connecticut-based Native American tribes have exclusivity on all forms of gaming in Connecticut, and we are actively working with all of the Connecticut constituents and regulators and government to ensure that that is the case,” Mohegan Chief Financial Officer Ari Glazer said in an earnings call last week.
“The state of Connecticut has sent cease-and-desist letters to the predictive event contract operators. There was a hearing as recently as yesterday at the state of Connecticut. So today, the state is pursuing legal action, and of course, we’re supportive of that.”
Tribal Casinos Taking A Hit?
State gaming regulators and some in the casino industry have argued that sports contracts are simply sports betting. The platforms, such as Kalshi and Polymarket, argue that they are fundamentally different and regulated at the federal level.
A total of 16 tribes in Connecticut and the Indian Gaming Association have filed briefs in support of gaming regulators’ move to force out PMs.
Prediction markets could potentially be hurting tribes’ bottom lines. Harvard Business reported that earnings at retail casinos in the Constitution State were mostly flat for the fourth quarter.
“The company’s flagship Mohegan Sun Connecticut and the Poconos Pennsylvania Casino both continue to report lackluster operations in the first fiscal quarter,” wrote Gimme Credit high-yield analyst Kim Noland in a research note recently.
On the other hand, the tribe’s online gaming operations appear to be in good shape for now. Mohegan Digital saw a 35.9% jump in revenue to a record of $72.2 million last quarter.
Some California Tribes Also Concerned
Tribes in California, which also have exclusivity on brick-and-mortar casinos in the state, have also sounded the alarm on the platforms. .
Indian Gaming Association Conference Chair Victor Rocha of Temecula, California, has been a frequent critic of the industry.
Team Kalshi is pathetic https://t.co/yw8OVrcVMP
— Victor Rocha (@VictorRocha1) February 16, 2026
In related news, Tennessee sent cease-and-desist letters in January to companies that offer sports contracts.
A Massachusetts state judge recently granted a preliminary injunction against Kalshi, barring the company from offering sports contracts while a case to ban prediction markets moves forward.
