Kalshi betting app opposed by 36 state attorneys in federal case
Ohio Attorney General Dave Yost and 35 other US attorneys general have submitted an amicus brief opposing the prediction platform Kalshi, which is suspected of enabling unregulated gambling through event contracts.
The bipartisan coalition requested that the US Court of Appeals for the Third Circuit side with New Jersey in its legal dispute with the prediction site.
In a news release, Attorney General Yost said, “States rightfully have the ability to protect their citizens from the negative consequences of online gambling, no matter how it’s packaged. We’re protecting the unprotected.”
Kalshi alleges it operates under the Commodity Exchange Act. It refers to itself as a prediction market exchange that allows users to place bets on the outcomes of events such as political elections and sports championships.
New Jersey federal court ruled in Kalshi’s favor in a lawsuit against the state’s Division of Gaming Enforcement on 28 April this year. However, the current appeal seeks to reverse that decision.
The amicus brief, supported by the American Gaming Association and the Casino Association of New Jersey, warns of the potential harm if Kalshi is permitted to run unchecked.
The brief said, “Eliminating the states’ ability to regulate online sports betting would pose very serious risks to the states’ citizens.”
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
