New Mexico Attorney General Raúl Torrez has taken legal action against prediction market platform Kalshi, alleging violations of the state’s gaming laws. The lawsuit, announced on Thursday, claims that Kalshi’s operations threaten the integrity of tribal gaming compacts in New Mexico.
Legal Challenge Against Kalshi
The lawsuit accuses Kalshi of attempting to circumvent state gambling regulations by unlawfully offering online sports betting. This move follows a similar legal challenge from several New Mexico tribes, who expressed concerns about the platform’s impact on their operations.
Kalshi, which allows users to trade contracts on the outcomes of future events, argues that it operates under federal jurisdiction as a regulated nationwide exchange. However, Attorney General Torrez contends that Kalshi’s platform violates New Mexico’s minimum gaming age of 21 by allowing participation from individuals as young as 18.
Protecting Tribal Sovereignty
Torrez emphasized the importance of New Mexico’s gaming regulations in protecting consumers and respecting tribal sovereignty. He stated, “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.”
The lawsuit seeks to shut down Kalshi’s operations in New Mexico and declare the company’s actions unlawful. It raises questions about the balance of federal and state oversight over online platforms like Kalshi.
Tribal Gaming Compacts
In New Mexico, gambling is permitted only through tribal nations with state gaming compacts. These agreements require tribes to address problem gambling and contribute to essential services and infrastructure projects within tribal communities.
Attorney General Torrez has been proactive in pursuing legal actions against major operations, including social media companies, and is now focusing on Kalshi’s activities within the state. The lawsuit seeks injunctive relief to prevent Kalshi from continuing to offer sports-related wagering through its platform.
Original reporting: KOAT Albuquerque — read the source article.
