New Mexico Department of Justice files lawsuit against Kalshi

The New Mexico Department of Justice and Attorney General Raúl Torrez have filed a lawsuit against Kalshi for “unlawfully offering online sports betting” and attempting to “evade” state laws which govern legal gaming. 

“New Mexico has a longstanding and carefully balanced system for regulating gaming that protects consumers, ensures accountability and respects Tribal sovereignty,” Torrez said. 

“The only lawful gaming in New Mexico operates either under Tribal-state gaming compacts, or under strict state regulations to ensure honest gaming free from corruption, and licenses gaming operators only after they explain how they plan to address compulsive gambling. Kalshi has ignored that framework entirely while offering online sports betting within the state. We are filing this lawsuit to protect the integrity of our laws, our regulatory system, and most importantly, consumers.”

The Department of Justice also believes Kalshi’s operations “function in the same manner” as sports betting, “undermine” public policy and “threaten the state’s sovereign authority” to regulate gambling activities. 

New Mexico’s lawsuit seeks injunctive relief to prohibit Kalshi’s operations across the state and to prevent the operator from continuing to offer sports-related wagering. 

New Mexico joins Rhode Island in becoming the latest US states to file lawsuits against the prediction markets operator, which eventually led to intervention from the Commodity Futures Trading Commission (CFTC). 

The CFTC filed a motion to intervene in Rhode Island Attorney General Peter Neronha’s lawsuit against Kalshi and Polymarket on May 29, seeking to “halt” efforts to apply state gambling laws against either entity. 

Internationally, Spain’s Ministry of Consumer Affairs launched proceedings against Polymarket and Kalshi on May 26, accusing both operators of offering gambling services in the country without required licenses.