Key Points:
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The attorneys general said the outcome of the Mass. case affects their citizens
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Mass. in September became the first state to sue a prediction market
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Kalshi says it should be regulated by the CFTC, not state gaming regulators
Thirty-eight state attorneys general filed an amicus brief in support of Massachusetts’s lawsuit against the prediction market platform Kalshi, as the company and others continue the legal fight over whether state gaming regulators or the Commodity Futures Trading Commission should oversee the industry.
The attorneys general, referred to as “the amici States” in the brief, write that they have “traditionally regulated gambling, including sports betting,” and “are interested in this case because Kalshi’s aggressive theory of preemption threatens the States’ longstanding ability to protect their citizens in this area.”
The brief was penned by Nevada Attorney General Aaron Ford and Ohio Attorney General Dave Yost. Signing onto the brief were the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Wisconsin and the District of Columbia.
The brief outlines that Kalshi continues to operate in states even where sports betting is illegal. The U.S. Supreme Court lifted a ban on sports gambling in most states in 2018. It remains outlawed in 19 states, including in Washington, California and Texas.
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38 state AGs sign amicus brief supporting Mass. in Kalshi lawsuit
