Rhode Island has filed a lawsuit against Kalshi and Polymarket for operating sports betting-like products in violation of the law and harming the state’s regulated revenues from gambling and lottery operations.
The lawsuit was filed by Attorney General Peter F. Neronha. He claims that there is “no real difference” between traditional sports betting and the contracts for sports events available through both prediction market operators.
In his comments, Neronha accused the companies of “avoiding the laws” and called on both to “cease” their operations and “return the profits.”
Attorney General Peter F. Neronha said:
RILOT has already observed an impact from the expansion of prediction markets, with bets decreasing eight per cent from 2024 to 2025. Thus, RILOT is particularly concerned about preserving its authority to regulate and collect revenue from the sports wagers for which Kalshi and Polymarket are now competing. While these private companies continue to profit exponentially off hard-working people, the state’s third largest revenue stream is detrimentally affected, which means less money to fund critical parts of programs that serve Rhode Islanders every day.
The Attorney General provided context to underscore the importance of regulated sports betting to Rhode Island’s economy, noting that sports betting through the Rhode Island lottery has produced $2.8 billion in revenue since it was legalized in 2019.
