Kalshi and Rhode Island sue each other in latest challenge to prediction markets
Key takeaways
- Rhode Island joins other states that have taken similar legal action.
- Samuel Boivin/Shutterstock Rhode Island is the latest state to challenge prediction markets on the legality of sports betting within its jurisdiction.
- Still, Rhode Island's attorney general is looking for a permanent court-ordered ban that prevents Kalshi and Polymarket from offering "sports-related events contract" in the state.
Rhode Island joins other states that have taken similar legal action.
Samuel Boivin/Shutterstock Rhode Island is the latest state to challenge prediction markets on the legality of sports betting within its jurisdiction. As reported by The Providence Journal, opposing lawsuits from the state's attorney general, Peter Neronha, and Kalshi were filed against each other earlier this week. Neronha sued both Kalshi and Polymarket, accusing the platforms of circumventing the state's regulations that only allows sports gambling through a singular state-sponsored platform.
However, Kalshi proactively filed its own legal action against Rhode Island arguing that its event contracts, including those predicting the outcomes of sports events, can only be regulated on a federal level by the US Commodity Futures Trading Commission (CFTC). Still, Rhode Island's attorney general is looking for a permanent court-ordered ban that prevents Kalshi and Polymarket from offering "sports-related events contract" in the state.