Mescalero Tribe Calls For New Mexico To Curb Sports Prediction Markets

The Mescalero Tribe in New Mexico has called for the Attorney General and state lawmakers to clamp down on sports prediction markets. 

Mescalero Apache Reservation Vice President Duane Duffy said that online betting platforms, such as Kalshi, are threatening the exclusive rights tribes have to offer gambling in New Mexico. 

A 2015 Compact, effective until 2037, grants tribal casinos the right to offer “any and all forms of Class III gaming”, which includes sports betting. 

Duffy voiced his concerns to members of the interim Economic & Rural Development & Policy Committee last week. 

In comments reported by Source NM, he said that sports prediction markets are “a threat to the gaming market here in the state, and a clear violation of the state tribal gaming compacts.”

“And so that is something that we are going to have to work together on [to] address.”

New Mexico AG Monitoring Other States Battles With Kalshi

Lauren Rodriguez, chief of staff for the New Mexico Attorney General, said that they had received a letter from tribal groups urging action on sports prediction markets. 

The office has been in communication with one of the tribes, Sandia Pueblo, regarding Kalshi and Rodriguez commented that they are “continuing to monitor developments in related lawsuits brought by other states”.

Seven states issued Kalshi with cease-and-desist letters, and it has filed counter lawsuits in New Jersey, Nevada, and Maryland. 

Judges granted preliminary injunctions in the cases in New Jersey and Nevada, while Maryland this week filed a ruling in another case in an attempt to strengthen its fight. 

Gaming Revenue an Essential Source of Income for Tribes

Duffy said the tribe relies on gaming revenue as an essential source of income, with money generated by its casino resort the sole source of funds, excluding federal and state grants. The tribe runs the casino resort Inn of the Mountain Gods, and due to a reduction in snowfall (the Mescalero also operate Ski Apache), the revenue generated by the casino has become increasingly important. 

In Q1 the resort generated more than $15 million, excluding federal and state grants. It has offered sports betting since partnering with William Hill in 2019.

Duffy indicated the tribe may be interested in pushing for an expansion into online sports betting. 

Sen. Bill Sharer asked Duffy, “What’s the solution to this? Because I don’t think we can stop the internet.”

The solution may be allowing tribes to also offer online sports betting, according to Duffy.

“There’s no mechanism that exists right now that allows the tribes or racinos to engage in internet gaming, and to have these outside entities from outside the state doing that… it’s taken out of our pockets, sending it out of state,” he said. “And we don’t have that ability then to revenue share to our full potential.”

There have been six attempts to legalize online gambling in New Mexico in the last eight years, but no bills have been introduced recently. With Kalshi’s expansion into sports betting this year, there may be more attempts from tribes and lawmakers in the near future. 

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