Rhode Island Attorney General Peter F. Neronha sued prediction market operators Kalshi and Polymarket in state court on Thursday, alleging their sports event contracts violate state gambling laws because they function like traditional sports betting.
The lawsuit, filed in Rhode Island Superior Court, is the latest development in an ongoing legal dispute between U.S. states and prediction market platforms. The state argues that the contracts offered by Kalshi and Polymarket are akin to sports betting, which is subject to strict regulations in Rhode Island.
The legal action highlights the growing scrutiny on prediction markets and their compliance with state gambling laws, reflecting a broader trend of increased regulatory oversight in the industry.
