New Mexico sues Kalshi over allegedly allowing unlawful sports betting

SANTA FE, N.M. — The New Mexico Department of Justice is now suing online prediction market platform, Kalshi, after four of the state’s tribes sued the platform in May.

The NMDOJ, led by state Attorney General Raul Torrez, is alleging Kalshi unlawfully offers online sports betting in the state by allowing people to place wagers on sporting events on its online platform.

In New Mexico, sports betting is legal but is limited to in-person wagering at tribal casinos. The NMDOJ cited this framework as the basis for suing Kalshi, accusing the platform of trying to skirt state gaming laws and regulations.

“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 NMDOJ accused Kalshi of using “event contracts” to effectively make online sports betting happen in the state. They alleged these contracts function in the same way as traditional sports bets and operate in the state without any gaming license.

NMDOJ also pointed out Kalshi operates with a minimum betting age of 18 years old, three years younger than the minimum age at the state’s tribal casinos.

In May, the Sandia, Isleta and Pojoaque Pueblos and the Mescalero Apache Tribe filed their own lawsuit, pointing out the minimum age and alleging people are using it on their lands in violation of their exclusive rights to offer betting services.

In its lawsuit, NMDOJ is looking to halt Kalshi’s operations in New Mexico and prevent the company from continuing to offer sports-related wagering through its platform.

KOB has yet to receive a statement from Kalshi on either lawsuit.

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