This week, the focus in the U.S. gambling scene centers around prediction markets, with significant legal proceedings taking place in Connecticut and Rhode Island. Additionally, governors in Colorado and Louisiana are poised to make decisions on various gambling legislation.
In Rhode Island, the legal battle is intensifying as Kalshi has filed a lawsuit in federal court, while the state has responded with its own lawsuit against Kalshi and Polymarket in state court. A hearing regarding Kalshi's request for a temporary restraining order is set for May 26, presided over by District Judge Mary S. McElroy. Meanwhile, Polymarket has moved the state case to federal court, and Rhode Island is expected to file a motion to remand it back.
In Connecticut, the Commodity Futures Trading Commission (CFTC) is challenging the state's restrictions on prediction markets, with a critical hearing scheduled for May 27. Judge Vernon D. Oliver will oversee discussions about the defendants' motion to dismiss and other procedural matters.
Washington state is also a focal point, having successfully remanded Kalshi's lawsuit back to state court. With the Ninth Circuit denying Kalshi's stay motion, Washington regulators may seek emergency relief, potentially including a temporary restraining order to halt Kalshi's operations.
Furthermore, the CFTC has been active in litigation against other states, including a recent lawsuit against Minnesota for its ban on prediction markets. The agency's involvement could expand further in Rhode Island or Washington.
On the legislative front, Colorado's Governor Jared Polis is expected to make decisions on two gambling bills, SB 131 and SB 163. The former initially included a ban on prop bets, which was later removed, while the latter aims to centralize gaming regulatory functions within the state.