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California Atty. Gen. Rob Bonta joined two bipartisan coalitions filing amicus briefs supporting New York and Wisconsin’s gambling enforcement authority. The disputes involve prediction market operator Kalshi and whether federal law preempts state gambling laws.
The attorneys general argue that federal preemption is improper when applied to prediction market providers. The filings mark California’s tenth and eleventh multistate amicus efforts targeting Kalshi and similar companies.
“Prediction markets cannot use federal loopholes to bypass state consumer protection, sports gaming, and gambling laws,” Bonta said.
Bonta framed the filings as an effort to protect young people and preserve state regulatory authority.
Kalshi Appeals New York Injunction Denial
Kalshi sued the New York State Gaming Commission after the commission sent the company a cease-and-desist order.
A district court denied Kalshi’s request for a preliminary injunction. It held that New York gambling laws governing Kalshi’s sports-event contracts were not preempted by federal law.
Kalshi appealed to the U.S. Court of Appeals for the Second Circuit. The coalition’s brief supports New York’s right to enforce its sports gaming and gambling laws.
Wisconsin Dispute Includes CFTC Challenge
The Wisconsin dispute began with a state-court action against Coinbase, Kalshi, Robinhood, Polymarket and Crypto.com.
The prediction market providers moved the cases to federal court. The Commodity Futures Trading Commission then filed its own federal lawsuit against Wisconsin. It sought a preliminary injunction blocking enforcement of the state’s gambling laws.
The district court denied the CFTC’s injunction request. According to forth.news, the CFTC appealed to the U.S. Court of Appeals for the Seventh Circuit.
More from gamingtoday.com – Kalshi Geofences Certain California Tribal Lands After Ninth Circuit Defeat – DraftKings, FanDuel Pull Sports Prediction Markets From Utah After Kalshi Charges – Supreme Court Review Of Prediction Markets May Not Come Until 2027
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Sources: As reported by forth.news and goldrushcam.com.
