36 US Attorneys General challenge Kalshi ruling

[The Buzz]

Ohio Attorney General Dave Yost announced Tuesday he's helping lead a bipartisan group of 36 attorneys general in challenging a legal argument that threatens to create a significant loophole for unregulated online gambling.

Yost, alongside Nevada Attorney General Aaron Ford, is urging a federal appeals court to reject this argument, which they contend could limit states' power over sports betting.

From the press release:

In an amicus brief, Yost and his counterparts urge the U.S. Court of Appeals for the Third Circuit to side with New Jersey in a lawsuit brought by Kalshi, an online platform that lets users bet on real-world events, including sports.
Kalshi claims that its use of so-called events contracts for gambling means states have no power to regulate the platform. According to Kalshi, Congress included a subtle provision in the Commodity Exchange Act that preempts state regulation of betting when it is offered through such contracts.

The attorneys general argue that nothing in federal law suggests that Congress aimed to strip states of their power to regulate sports betting.

The brief warns of the consequences of allowing Kalshi’s loophole to stand, particularly the effects on millions of Americans who struggle with gambling problems.

“Eliminating the states’ ability to regulate online sports betting would pose very serious risks to the states’ citizens,” the brief says. “Online sports betting, while convenient and entertaining for many, comes with life-altering consequences for some.”

Read more here: https://www.gpwa.org/article/attorne...oophole-260381

[ocreditor]

This is a big moment, if Kalshi's argument wins, it could undermine state control over betting entirely. Glad to see AGs pushing back.