Kalshi and Rhode Island AG Trade Lawsuits Over Sports Event Contracts

5 articles · Updated · Engadget · May 24

Rhode Island Attorney General Peter Neronha and Kalshi filed opposing lawsuits this week, escalating a fight over whether sports-related prediction contracts can be offered in the state.
Neronha sued Kalshi and Polymarket, arguing the contracts unlawfully bypass Rhode Island's system that permits sports gambling only through a single state-sponsored platform.
Kalshi's suit argues its event contracts fall under exclusive federal oversight by the Commodity Futures Trading Commission, not state gambling regulators.
The attorney general is seeking a permanent ban on Kalshi and Polymarket's sports-related contracts in Rhode Island, saying there is no meaningful difference between those products and sports betting.
Rhode Island joins Nevada and New Jersey in challenging prediction markets, while Minnesota has passed a ban likely to face its own regulatory fight.

With a federal court backing prediction markets, are state sports betting monopolies now facing their biggest threat?

As states and the federal government clash, is a Supreme Court showdown inevitable to define the future of betting?