Rhode Island AG Sues Prediction Platforms Kalshi And Polymarket

Rhode Island Attorney General Peter F. Neronha has sued prediction platforms Kalshi and Polymarket, accusing them of circumventing gambling regulations.

“There is no substantive difference between sports betting and ‘events contracts’ in this context; Kalshi and Polymarket know that, and we know that,” Neronha said in a media release.

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"The problem here is that Rhode Island State law heavily regulates gambling, for good reason, and we allege that Kalshi and Polymarket are evading our laws," Neronha said. "And Rhode Islanders are losing out."

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Kalshi and Polymarket allow Rhode Islanders to place online wagers on the outcome of future events, including sports matches, according to the release.

"Specifically, these platforms allow users to take monetary positions on real-world events by purchasing 'event contracts' that are structured as binary options: bettors buy 'yes' or 'no' positions on whether an event will occur ('yes') or will not occur ('no'). Users receive a fixed payout if they are correct and nothing if they are not," the release said.

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"Though this 'event contracts' structure may technically differ from a traditional sportsbook, the complaint alleges that they are fundamentally the same: as with a sportsbook, Kalshi and Polymarket allow Rhode Islanders to bet on the outcome of sports matches and player performances," the release said.

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"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," Neronha said.

"Further, we allege that these platforms offer those susceptible to problem gambling unfettered access, increasing the potential for the devastating effects of gambling addiction," he said. "We demand Kalshi and Polymarket stand down, abide by our state laws, and disgorge their profits, and this lawsuit is the first step towards that goal.”

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