Rhode Island AG Takes On Prediction Markets

(AsiaGameHub) –   Rhode Island Attorney General Peter Neronha appears undeterred by pushback from the Commodity Futures Trading Commission (CFTC) and private firms in the prediction market industry.

Rhode Island Committed to Taking On Prediction Markets Over Sports Event Contracts

In fact, he has just filed his own lawsuit, targeting Kalshi and Polymarket—de facto leaders in the field—and once again challenging their assertion that they can provide sports event contracts.

AG Neronha aims to ultimately remove Kalshi and Polymarket from the sports-focused prediction market space.

Attorneys general and gaming regulatory bodies across the U.S. argue that these companies are attempting to offer a “gambling product” without undergoing the same strict procedures required of traditional gambling firms.

Though some industry insiders—including DraftKings—have dismissed these concerns as overblown, most lawmakers, regulators, and attorneys general have persistently clung to this line of reasoning.

For their part, Kalshi and Polymarket have responded repeatedly—politely but firmly—that they fall under the CFTC’s regulatory purview and are not subject to state gaming laws.

AG Neronha filed the lawsuit on Wednesday, May 21, making the same case: Kalshi and Polymarket offer sports betting via their event contracts without adhering to Rhode Island’s gambling laws.

AG Stands Firm on His Position, Insists Rhode Island’s Laws Must Be Obeyed

“In this context, there’s no meaningful distinction between sports betting and ‘event contracts’—Kalshi and Polymarket know that, and so do we,” Neronha stated, noting that state law should take precedence here and accusing the two platforms of evading those laws.

At its core, AG Neronha is seeking a permanent injunction against the companies to bar them from offering their sports event contracts in Rhode Island specifically. Meanwhile, the CFTC has been pushing back (along with private operators) against these acts of dissent.

The CFTC recently filed a lawsuit against Minnesota, which became the first U.S. state to completely ban prediction markets—signaling a notable shift in how far states are willing to go to exclude sports event contracts.