Attorney General Raúl Torrez announced Thursday that the New Mexico Department of Justice has filed a lawsuit against Kalshi, accusing the company of attempting to evade state gambling laws while unlawfully offering online sports betting in New Mexico. The lawsuit follows a separate legal challenge filed weeks earlier by several New Mexico tribes, which raised similar concerns about Kalshi’s operations. The prediction market platform Kalshi maintains it is not operating as a sportsbook, but Torrez sees it differently. “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.” Kalshi allows users to trade on the outcomes of future events, ranging from who will win the NBA Finals to whether the U.S. will confirm the existence of aliens. Unlike traditional casinos, where bets are placed against the house, Kalshi says its users buy and sell contracts directly with one another. A spokesperson for Kalshi responded, stating, “As other courts have recognized, Kalshi is a regulated, nationwide exchange for real-world events and subject to exclusive federal jurisdiction. It’s fundamentally different from what state-regulated sportsbooks and casinos offer their customers. We are confident in our legal arguments.”Torrez argues that Kalshi’s platform allows people as young as 18 to participate, despite New Mexico’s minimum gaming age of 21. He is asking the court to shut Kalshi down in New Mexico and formally declare the company’s actions unlawful and a public nuisance. The lawsuit raises questions about whether Kalshi is regulated solely by federal regulations or if states have the authority to oversee online platforms like it. In New Mexico, only tribal nations with state gaming compacts are allowed to operate gambling. These compacts require tribes to address problem gambling and generate revenue that supports essential services, economic development and infrastructure projects in tribal communities. Torrez has been aggressive in pursuing legal action against major operations, including social media companies, and is now targeting Kalshi’s operations in the state. The lawsuit seeks injunctive relief to halt Kalshi’s operations in New Mexico and prevent the company from continuing to offer sports-related wagering through its platform.
Attorney General Raúl Torrez announced Thursday that the New Mexico Department of Justice has filed a lawsuit against Kalshi, accusing the company of attempting to evade state gambling laws while unlawfully offering online sports betting in New Mexico.
The lawsuit follows a separate legal challenge filed weeks earlier by several New Mexico tribes, which raised similar concerns about Kalshi’s operations.
The prediction market platform Kalshi maintains it is not operating as a sportsbook, but Torrez sees it differently.
“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.”
Kalshi allows users to trade on the outcomes of future events, ranging from who will win the NBA Finals to whether the U.S. will confirm the existence of aliens. Unlike traditional casinos, where bets are placed against the house, Kalshi says its users buy and sell contracts directly with one another.
A spokesperson for Kalshi responded, stating, “As other courts have recognized, Kalshi is a regulated, nationwide exchange for real-world events and subject to exclusive federal jurisdiction. It’s fundamentally different from what state-regulated sportsbooks and casinos offer their customers. We are confident in our legal arguments.”
Torrez argues that Kalshi’s platform allows people as young as 18 to participate, despite New Mexico’s minimum gaming age of 21. He is asking the court to shut Kalshi down in New Mexico and formally declare the company’s actions unlawful and a public nuisance.
The lawsuit raises questions about whether Kalshi is regulated solely by federal regulations or if states have the authority to oversee online platforms like it.
In New Mexico, only tribal nations with state gaming compacts are allowed to operate gambling. These compacts require tribes to address problem gambling and generate revenue that supports essential services, economic development and infrastructure projects in tribal communities.
Torrez has been aggressive in pursuing legal action against major operations, including social media companies, and is now targeting Kalshi’s operations in the state.
The lawsuit seeks injunctive relief to halt Kalshi’s operations in New Mexico and prevent the company from continuing to offer sports-related wagering through its platform.
