The tribe's 72-page complaint in a Florida state court alleges DraftKings' prediction markets and Pick6 are illegal sports betting under its exclusive compact. Kalshi gave $317,500 to the two associations that help elect state attorneys general in the first half of the year.
October 9, 2026
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The legal fight over whether prediction markets are gambling has a new front, and a new kind of plaintiff.
The Seminole Tribe of Florida sued DraftKings, Chief Executive Jason Robins and the entity that operates DraftKings Predictions in Broward County Circuit Court on Thursday. The 72-page complaint alleges that the company's Florida offerings, including its prediction markets, its Pick6 product and its combined "Super App," amount to unlicensed sports betting in violation of Florida law and of the tribe's 2021 gaming compact with the state.
The tribe's claims
The compact gives the tribe exclusive rights to offer sports betting in Florida, which it does through Hard Rock Bet, in exchange for sharing revenue with the state. The complaint says Florida users can bet through the DraftKings app on moneylines, point spreads, totals and player performances, and that the products function like a sportsbook despite their labels.
It brings five counts, including a claim under Florida's racketeering law against Robins personally, and accuses DraftKings of secretly financing earlier legal challenges to the compact. The tribe is asking the court to stop DraftKings from operating or advertising the products in Florida and to recover revenue earned in the state, which it says it would direct to consumer-protection and problem-gambling programs.
"Every wager that (DraftKings) now accept through their illegal sportsbook siphons away revenue that funds both the Tribe's and Florida's public programs and government services," the complaint states.
DraftKings' response
"DraftKings' prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act," a company spokesperson said, adding that Pick6 "is a peer-to-peer fantasy sports variant" and "is not sports betting." The company said it remains "confident in our legal position."
Gov. Ron DeSantis said he had not read the suit, but that "our agreement clearly contemplated that they would have the ability to run this in Florida." He said the broader question will likely be settled by federal courts.
The money on the other side
The suit lands as prediction-market companies spend heavily in the states where they are being challenged. According to IRS filings, Kalshi gave $147,500 to the Republican Attorneys General Association and $170,000 to the Democratic Attorneys General Association in the first half of 2026, a combined $317,500. It gave $100,000 to the Republican Governors Association and $150,000 to the Democratic Governors Association. As of September, Kalshi had at least one registered lobbyist in 41 states, nearly all hired since April. Kalshi, Polymarket and the Coalition for Prediction Markets have together spent at least $3 million on lobbying and campaign contributions this year.
"Like many U.S. regulated companies, we support candidates on both sides of the aisle," Kalshi spokesperson Dani Lever said.
State attorneys general have led the opposition to prediction markets; 44 of them signed a July letter to the Commodity Futures Trading Commission calling the products "a new form of casino."
DraftKings shares fell about 2.3% to $19.42 on Friday.
Two readings
One reading is that the tribal compact is a stronger weapon than the arguments states have used so far. Florida's governor appears to side with the tribe, the compact guarantees the state at least $2.5 billion over its first five years, and the racketeering claim raises the personal stakes for DraftKings' leadership.
Another reading is that the case will turn on federal preemption, as the others have. DraftKings argues its products are regulated swaps under federal law, the question is already moving toward the Supreme Court, and a state court ruling may not be the last word.
What comes next
A ruling on the tribe's request for an injunction, DraftKings' formal response and any federal removal motion are the next steps. Kalshi's response in its Supreme Court case is due Nov. 9.