NM lawmaker pushes tribal gaming compact changes to enable online wagering

Lawmaker Rep. John Block’s (R-Alamogordo) request during the Legislature’s interim Indian Affairs Committee meeting comes after several pueblos and New Mexico Attorney General Raúl Torrez filed lawsuits in state and federal court against online gambling platform Kalshi, alleging the company is illegally enabling sports betting in New Mexico in violation of state law and the intertribal gaming compact.

Since online sports gambling is apparently happening already in New Mexico, Block said, the 17 tribes and pueblos that are part of the state’s gaming compact should reopen the agreement to allow the practice and charge taxes and fees. By prohibiting online sports betting, the lawmaker said, the state is forgoing 'tens of millions' of dollars in revenues from online sports gambling, which is legal in 33 states, 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.

New Mexico tribes and pueblos rely on gambling revenue 

New Mexico tribes and pueblos rely on gambling revenue for some vital services, including education, and also provide a portion of that revenue to the state. Of the roughly $230 million generated in net revenues from casinos in the first quarter of 2026, for example, about $22 million went to the state’s general fund, according to the New Mexico Gaming Control Board. 

Nelva Cervantes, general counsel of the Mescalero Apache Tribe, which is one of the tribal governments that sued Kalshi, presented to the committee about the state’s gambling laws. She told Block that she is unaware of any efforts to reopen the compact, which currently are set to expire in 2037. 

Reopening negotiations requires approval 

Reopening negotiations requires approval from the New Mexico governor and tribal government members. The New Mexico Legislature and the U.S. Interior Department secretary then must sign off on the compact once negotiated. 

“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,” she said regarding online sports gambling. 

The tribal lawsuit against Kalshi remains pending, according to court records. Last week, the federal Commodity Futures Trading Commission sued Torrez to prevent New Mexico from trying to regulate Kalshi under state law. The commission argued that it has sole jurisdiction to regulate online gaming platforms. 

Torrez’s office has not yet responded in federal court to the commission’s lawsuit, though the New Mexico Department of Justice argued in previous filings that state law clearly allows him to sue Kalshi.