Rhode Island becomes the latest state to join the fight against Kalshi and other prediction markets for offering sports prediction contracts.
The lawsuit was filed on May 21st by Rhode Island Attorney General Peter Neronha, both in the state and in federal court, in an attempt to restrict the prediction markets from accepting wagers within state lines.
"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,” said Neronha in a press release.
Neronha’s lawsuit is seeking a permanent injunction blocking the site from offering markets on sporting events. Even further, the AG stated in the suit that the state will not hold back from enforcing the restriction.
There has also been a significant impact on the regulated sports betting market in the state, with the suit stating that sports bets have declined by 8% from 2024 to 2025 with the introduction of prediction markets.
This lawsuit from Rhode Island comes as a retaliation rather than an initiation after Kalshi filed a preemptive suit against the state over any potential blockage and enforcement.
Aside from Rhode Island, Kalshi and the prediction market landscape as a whole have faced backlash from 12 total states, including Arizona, Connecticut, Illinois, Massachusetts, Nevada, New Jersey, New York, Ohio, Tennessee, Washington, and Wisconsin.
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