Wallach Urges California Prosecutors to Take On Kalshi

Daniel Wallach, a gaming attorney, is urging California tribes to enlist city and county prosecutors to challenge Kalshi, a prediction-market operator operating in the state. Wallach believes that tribal litigation alone won't compel Kalshi to leave California, as their Ninth Circuit ruling only granted them a preliminary injunction but offered no damages or restitution.

Kalshi has now appealed this decision to the full Ninth Circuit Court. Wallach suggests that city and county attorneys in California municipalities with populations over 750,000 could bring enforcement actions under the state's Unfair Competition Law, which prohibits unlawful, unfair, or fraudulent business practices. This approach could yield more substantial results, including damages and restitution.

He points to the Los Angeles city attorney's lawsuit against Stake.us as a potential template for tribes to replicate against Kalshi. Kalshi has lost before six judges in these cases, and Wallach believes the company's en banc petition is more about discouraging Western states from pursuing enforcement while the ruling remains unsettled.