{"id":20165,"date":"2026-05-22T16:57:36","date_gmt":"2026-05-22T13:57:36","guid":{"rendered":"http:\/\/staging.igamingamerika.com\/?p=20165"},"modified":"2026-05-22T16:57:36","modified_gmt":"2026-05-22T13:57:36","slug":"kalshi-files-lawsuit-against-first-rhode-island-counters-with-illegal-betting-charges","status":"publish","type":"post","link":"https:\/\/igamingamerika.com\/index.php\/2026\/05\/22\/kalshi-files-lawsuit-against-first-rhode-island-counters-with-illegal-betting-charges\/","title":{"rendered":"Kalshi Files Lawsuit Against First, Rhode Island Counters With Illegal Betting Charges"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/kalshi.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Kalshi<\/a> has acted swiftly to defend its platform, filing a federal lawsuit against Rhode Island officials before the state had a chance to intervene. The company contended that regulators had already indicated their intention to pursue enforcement actions, making it clear that unless Kalshi ceased offering event contracts, action was imminent. <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The complaint recalls a meeting on May 20, where officials refused to provide any assurances. \u201cWhen Kalshi sought assurances that the Rhode Island Attorney General did not intend to bring an enforcement action against Kalshi, the Attorney General made clear that Kalshi would not receive any advanced notice before the state filed an enforcement action against the company,\u201d the complaint stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br>Kalshi also highlighted earlier comments from Rhode Island Lottery Director Mark Furcolo, who described the state\u2019s investigation into prediction markets as \u201cvery active.\u201d According to Gambling Insider, the company warned that such enforcement efforts risk creating a \u201cpatchwork of state\u2011by\u2011state regulation Congress sought to prevent.\u201d<br>In a swift response, Rhode Island Attorney General Peter Neronha filed suit against Kalshi and Polymarket just hours later, alleging that these platforms are operating illegal sports betting under the guise of prediction markets. Neronha\u2019s complaint seeks an injunction to bar the platforms from offering bets on sporting events, arguing that their \u201cevent contracts\u201d are essentially sports bets in disguise. \u201cThere is no substantive difference between sports betting and \u2018events contracts\u2019 in this context; Kalshi and Polymarket know that, and we know that,\u201d he stated. He emphasized that Rhode Island law and its constitution impose strict gambling controls, which the companies are allegedly attempting to bypass.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br>State officials also voiced concerns about broader impacts, asserting that by circumventing the regulated system, the platforms are diverting business from Sportsbook RI and reducing the state\u2019s revenue. More critically, they warned about the contribution of these sites to problem gambling. \u201cBy circumventing Rhode Island State law, we allege that Kalshi and Polymarket are harming Rhode Islanders\u2019 mental and financial well-being,\u201d the release explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read also:<a href=\"http:\/\/staging.igamingamerika.com\/gaming-corps-expands-bet365-partnership-with-brazil-launch\/\" target=\"_blank\" rel=\"noreferrer noopener\"> Gaming Corps expands bet365 partnership with Brazil launch<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br>This legal clash comes just a week after Bally\u2019s secured Rhode Island\u2019s second online sportsbook license, breaking IGT\u2019s Sportsbook Rhode Island\u2019s monopoly established in 2019. Bally\u2019s is expected to launch its platform in November, once IGT\u2019s exclusive deal expires, signaling a significant expansion of the state\u2019s gambling landscape. The Rhode Island Lottery opened applications late last year, but only Bally\u2019s and Rush Street Interactive submitted bids. After review, Bally\u2019s was selected; Deputy Director Michael O\u2019Rourke noted that officials had hoped for more applicants but received only these two. Despite the high revenue split, with 51% of online betting revenue going directly to the state, Bally\u2019s welcomed the opportunity, already operating two casinos in Lincoln and Tiverton.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br>Under the new arrangement, Bally\u2019s will claim the full 49% share as both the online operator and the physical sportsbook provider. Lottery figures show that online betting generated $26.7 million from last July through March, with approximately $13.6 million of that amount allocated to the state.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kalshi has acted swiftly to defend its platform, filing a federal lawsuit against Rhode Island officials before the state had a chance to intervene. The company contended that regulators had already indicated their intention to pursue enforcement actions, making it clear that unless Kalshi ceased offering event contracts, action was imminent. The complaint recalls a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":20166,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,2],"tags":[259,313,5],"class_list":["post-20165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-sports-betting-america-news","tag-kalshi","tag-prediction-markets","tag-sports-betting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kalshi Files Lawsuit Against First, Rhode Island.<\/title>\n<meta name=\"description\" content=\"Kalshi has acted swiftly to defend its platform, filing a federal lawsuit against Rhode Island officials before the state had a chance to intervene.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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