The Mohegan Tribe is publicly backing Connecticut regulators as the state intensifies its effort to shut down prediction market platforms operating within its borders.
In December, Bryan T. Cafferelli, commissioner of the Connecticut Department of Consumer Protection, issued cease-and-desist orders to several prediction market operators. While exchange platform Kalshi later secured a temporary restraining order pausing enforcement, the broader legal battle is far from over.
The Mohegan Tribal Gaming Authority has now made its stance clear: prediction markets offering sports-related contracts amount to illegal gambling under Connecticut’s framework.
Protecting Tribal Exclusivity
Speaking during a recent earnings call, Mohegan CFO Ari Glazer emphasized that Connecticut’s two federally recognized tribes maintain exclusivity over gaming in the state.
“We are actively working with Connecticut constituents, regulators, and government to ensure that remains the case,” Glazer said, noting that the state has already issued cease-and-desist letters and is pursuing further legal action.
Sixteen tribes — along with the Indian Gaming Association — have reportedly filed briefs supporting regulators’ push to remove prediction market operators.
At the heart of the dispute is a familiar argument: Are sports-based event contracts simply another form of sports betting?
State regulators and segments of the casino industry say yes. Platforms like Kalshi and Polymarket contend that their offerings are fundamentally different financial products regulated at the federal level.
Financial Pressures in the Background?
The debate comes as traditional brick-and-mortar casinos in Connecticut face sluggish performance.
According to reporting from Harvard Business, retail casino earnings in the state were mostly flat in the fourth quarter. Mohegan Sun — the tribe’s flagship property — and its Pennsylvania operations have both posted underwhelming recent results, according to industry analysts.
However, Mohegan’s digital arm is telling a different story. Mohegan Digital reported a 35.9% revenue increase last quarter, reaching a record $72.2 million — a bright spot amid softer retail numbers.
With retail growth stagnating, any perceived encroachment on exclusive gaming rights could raise concerns about long-term revenue stability for tribal operators.
A Broader Tribal Response
Connecticut is not alone in scrutinizing prediction markets.
Tribal leaders in California — where tribes also hold exclusivity over brick-and-mortar casino gaming — have voiced similar concerns. Victor Rocha, conference chair of the Indian Gaming Association, has emerged as a frequent critic of prediction market platforms.
Meanwhile, other states are moving as well. Tennessee issued cease-and-desist letters in January to companies offering sports event contracts. In Massachusetts, a state judge recently granted a preliminary injunction blocking Kalshi from offering sports contracts while litigation proceeds.
What Comes Next?
With temporary court relief in place for Kalshi but growing opposition from tribes and state regulators, the legal clash over prediction markets is intensifying.
For the Mohegan Tribe and other tribal gaming stakeholders, the issue goes beyond semantics. It touches on exclusivity agreements, regulatory authority, and the evolving boundaries between financial exchanges and gambling.
As more states weigh in, the outcome in Connecticut could help shape how prediction markets are treated nationwide — and whether they are viewed as innovative financial tools or simply a new wrapper for sports betting.
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