Native American tribes and casinos back Rhode Island fight against Kalshi and Polymarket
Native American tribes and casinos have backed Rhode Island's legal fight against prediction market platforms Kalshi and Polymarket. The platforms maintain that their event contracts are federally regulated financial derivatives rather than illegal gambling. Rhode Island's sports betting interests are opposing the platforms' operations.
Kalshi and Polymarket must now fight Rhode Island gambling claims backed by casino tribes while defending federal preemption in multiple simultaneous state lawsuits. Any state-level loss risks a patchwork of geofenced markets and divergent compliance obligations.
Joins a multi-state legal offensive against Kalshi and Polymarket already underway in New Mexico, Minnesota, and Illinois, with the CFTC simultaneously suing to preserve federal jurisdiction over state gambling enforcement actions.