Rhode Island Attorney General announces lawsuit against Kalshi and Polymarket
Attorney General Peter F. Neronha claims there is no substantive difference between event contracts and sports betting.
US.- Rhode Island Attorney General Peter F. Neronha has announced a lawsuit against Kalshi and Polymarket. He claims there is no substantive difference between event contracts and sports betting.
Neronha’s office says that although the event contracts’ structure may technically differ from that of a traditional sportsbook, they allow people to bet on the outcome of sports matches and player performances and are therefore subject to Rhode Island’s gambling laws.
Neronha said: “There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that. The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws. And Rhode Islanders are losing out.
“While these private companies continue to profit exponentially off hard-working people, the State’s third largest revenue stream is detrimentally affected, which means less money to fund critical parts of programs that serve Rhode Islanders every day.”
He added: “We demand Kalshi and Polymarket stand down, abide by our state laws, and disgorge their profits, and this lawsuit is the first step towards that goal.”
In March, Washington Attorney General Nick Brown filed legal action against Kalshi, as has Arizona Attorney General Kris Mayes and Michigan Attorney General Dana Nessel.
Elsewhere, regulators announced today a block on Kashi and Polymarket in Spain.
