(COLUMBUS, Ohio) — A bipartisan group of 36 attorneys general co-led by Ohio Attorney General Dave Yost is challenging a federal court ruling that risks creating a loophole for unregulated 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 side with New Jersey in a lawsuit brought by Kalshi, an online platform that lets users bet on real-world events, including sports.
Kalshi claims that its use of so-called events contracts for gambling means states have no power to regulate the platform. According to Kalshi, Congress included a subtle provision in the Commodity Exchange Act that preempts state regulation of betting when it is offered through such contracts.
The attorneys general argue that nothing in federal law suggests that Congress aimed to strip states of their power to regulate sports betting.
The brief warns of the consequences of allowing Kalshi’s loophole to stand, particularly the effects on millions of Americans who struggle with gambling problems.
“Eliminating the states’ ability to regulate online sports betting would pose very serious risks to the states’ citizens,” the brief says. “Online sports betting, while convenient and entertaining for many, comes with life-altering consequences for some.”
Yost and Nevada Attorney General Aaron Ford are leading the coalition, which also includes the attorneys general of 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 garnered widespread bipartisan support from his counterparts across the country. Yost previously served as president of the National Association of Attorneys General, an organization that promotes collaboration among states.
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Dominic Binkley: 614-728-4127
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