A leadership dispute within the Alabama-Quassarte Tribal Town has drawn prediction market operator Kalshi into a lawsuit over who had authority to commit the Oklahoma tribe to a newly announced business venture.
Samuel Marshall Jr., who claims to be the tribe’s chief, filed the lawsuit in his name and the tribe’s name Oct. 30 in Muscogee (Creek) Nation District Court. The litigation seeks to block PokkeTrades, a proposed trading app powered by Kalshi, alleging that Wilson Yargee, who also claims to be chief, had no authority to approve the deal. The lawsuit was first reported by Mvskoke Media.
Both Marshall and Yargee claim to lead the tribe. The Bureau of Indian Affairs Tribal Leader Directory lists both men under an entry marked “Chief (Subject to Tribal Leadership Dispute).”
Kalshi announced the PokkeTrades deal Oct. 7 alongside partnerships with three California tribes, as Tribal Business News previously reported. Under the model Kalshi described, each tribe would own its app and control its brand and customer relationships, while Kalshi would operate the underlying federally regulated exchange.
The complaint alleges that Alabama-Quassarte Tribal Town never approved or ratified the venture, and that its governing committee removed Yargee as chief in 2021.
Marshall and the tribal town are asking the court for an emergency order blocking the launch of PokkeTrades and declaring the agreement invalid. The suit also alleges fraud, false advertising and civil conspiracy.
The complaint further alleges that announcements surrounding the PokkeTrades partnership harmed the tribe’s reputation and business interests by creating confusion over who is authorized to represent the tribal government.
Kalshi disputes the allegations. Gambling News reported that company spokesperson Jacki McGavick said the agreement was approved by a tribal council and supported by a signed contract.
The lawsuit marks the latest dispute involving Kalshi and tribal governments as tribes across the country continue to challenge the company’s prediction-market operations as a threat to tribal sovereignty.
