New Mexico Tribes Face Compact Pressure as Kalshi Battle Drags On
New Mexico Rep. John Block (R-Alamogordo) called on the state’s tribes and pueblos to renegotiate their intertribal gaming compact and open the door to statewide online sports betting. He made the case at the Legislature’s interim Indian Affairs Committee meeting, days after tribal governments and Attorney General Raúl Torrez filed lawsuits against Kalshi for alleged violations of state law and the compact.
Sports betting in New Mexico is currently restricted to in-person activity at tribal casinos. Block told the committee that online sports gambling is apparently already happening in the state, with neither tribes nor the state collecting any tax or fee revenue from it.
His argument was straightforward on the numbers. New Mexico is forgoing “tens of millions” of dollars, Block said, while 33 states have already legalised online sports betting, according to the American Gaming Association.
“It would be really nice, at least, to get some more revenue for people, because if people are already here operating in the state illegally online, then that robs you, it robs us, it robs every single New Mexican of that tax revenue,” Block said.
What the Compact Covers
Tribal gaming is a substantial revenue stream for New Mexico. According to the New Mexico Gaming Control Board, casinos produced about $230m in net revenue in Q1 2026, with roughly $22m directed to the state’s general fund.
The compact covers 17 tribes and pueblos and runs until 2037. Any renegotiation requires sign-off from the New Mexico governor, tribal government members, the state Legislature, and the US Interior Department secretary.
Nelva Cervantes, general counsel of the Mescalero Apache Tribe, told the committee no active effort to reopen the compact was underway. Her tribe is one of those that sued Kalshi.
“Mescalero, at this point, has not discussed reopening the compact for negotiation, but it is definitely something that we’re looking at, and we are concerned about,” Cervantes said.
The Federal Dimension
The tribal lawsuit against Kalshi remains pending. Last week, the federal Commodity Futures Trading Commission sued Torrez to block New Mexico from any attempt to regulate Kalshi under state law. The CFTC’s position is that it holds sole jurisdiction over online platforms of this kind.
Torrez’s office had not yet filed a federal court response at the time of source publication. In earlier filings, the New Mexico Department of Justice argued that state law clearly grants the attorney general authority to pursue Kalshi.
💡TGJ Take
If Block’s premise holds and residents are already on Kalshi or similar products, the compact model is guarding in-person betting while online revenue flows elsewhere. For tribal operators, a renegotiation carries political risk, but continued inaction may cost more if platforms like Kalshi keep probing the boundary. Affiliates with New Mexico-facing partners should not count on a licensed online sportsbook appearing soon. Any legal path here runs through compact politics first, and that process has no fast lane.
