Recent legal actions involving Kalshi have led a New Mexico legislator to advocate for discussions regarding the state's tribal gaming agreement. This proposal includes the potential legalization of online sports betting across the state, alongside the collection of taxes from this activity.
Representative John Block (R-Alamogordo) made this request during a meeting of the Legislature's interim Indian Affairs Committee last week. This comes after multiple tribes and pueblos in New Mexico, along with Attorney General Raúl Torrez, initiated lawsuits against the online prediction market platform.
The lawsuits claim that Kalshi is unlawfully facilitating sports betting in New Mexico, which contravenes both state regulations and the intertribal gaming compact. The tribal lawsuit against Kalshi is still pending, as indicated by court documents.
In a related development, the federal Commodity Futures Trading Commission has filed a lawsuit against Torrez, aiming to stop New Mexico from exercising state law over Kalshi. The commission contends that it holds exclusive authority to oversee online gaming platforms.
Previously, the New Mexico Department of Justice argued in court that state law empowers the attorney general to take legal action against Kalshi.
During the committee session, Block emphasized that the 17 tribes and pueblos involved in New Mexico's gaming compact should consider revising the agreement to allow for statewide online sports betting, as this activity is already occurring. He noted that a modified compact could facilitate tax and fee collection from online betting.
Block pointed out that New Mexico is losing out on