A bipartisan coalition of 36 attorneys general, co-led by Ohio Attorney General Dave Yost, is pushing back against a federal court ruling that could create a loophole for unregulated online gambling.
“States rightfully have the ability to protect their citizens from the negative consequences of online gambling, no matter how it’s packaged,” Yost said. “We’re protecting the unprotected.”
In an amicus brief, Yost and his counterparts urge the U.S. Court of Appeals for the Third Circuit to rule in favor of New Jersey in a lawsuit against Kalshi, an online platform that allows users to bet on real-world events, including sports.
Kalshi argues that its use of events contracts exempts it from state gambling regulations, citing a provision in the Commodity Exchange Act that it claims preempts state oversight.
The attorneys general, however, contend that nothing in federal law strips states of their authority to regulate sports betting. They warn that allowing Kalshi’s argument to stand could have severe consequences, particularly for the millions of Americans struggling with gambling addiction.
“Eliminating states’ ability to regulate online sports betting would pose serious risks to citizens,” the brief states. “While convenient and entertaining for many, online sports betting can have life-altering consequences for some.”
The coalition is spearheaded by Yost and Nevada Attorney General Aaron Ford, alongside attorneys general from Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, New York, North Carolina, North Dakota, the Northern Mariana Islands, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin.
Last month, Yost led another amicus brief that earned bipartisan support nationwide. He previously served as president of the National Association of Attorneys General, an organization dedicated to interstate collaboration.
