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The legal dispute between Kalshi and the Maryland Lottery and Gaming Control Commission (MLGCC) has escalated, with Kalshi now asking the court to reject a recent filing from Tribal groups. The filing, an amicus brief, supports Maryland regulators and challenges Kalshi’s request for a preliminary injunction.
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Kalshi says the brief is late and irrelevant to state law compliance.
The Tribal groups say Kalshi’s contracts resemble sports betting.
Maryland ordered Kalshi and others to stop certain event-based trades.
Tribal organizations submitted their amicus brief in support of Maryland’s position, arguing that certain event contracts offered by Kalshi fall under the definition of sports wagering. They believe these offerings conflict with federal restrictions from the Commodity Futures Trading Commission (CFTC) and also violate the Indian Gaming Regulatory Act (IGRA).
Kalshi responded quickly, urging the court to reject the brief. The company questioned the relevance of the filing, pointing out that the groups involved are from outside Maryland and have no direct connection to how the state regulates gaming.
In its response, Kalshi stated, “If putative amici were permitted to file a brief at this late stage, Kalshi would have less than 48 hours before its supplemental response brief is due to respond to the material putative amici now raise.”
Kalshi continued, “The lodged brief would not be useful to the Court. Putative amici appear to represent out-of-state tribal interests with no clear stake in whether Kalshi must comply with Maryland gaming laws during the pendency of this litigation—the question before the Court on Kalshi’s preliminary injunction motion.”
While Kalshi said it had previously agreed to other amicus briefs in its ongoing Third Circuit appeal, it believes this new filing arrives too late in the current Maryland dispute and adds no value. “Kalshi wishes to be accommodating of parties claiming an interest in the ongoing preemption litigation, and has consented to all amicus briefs in the now-pending Third Circuit appeal. But this putative amicus brief is untimely and unhelpful. Kalshi respectfully requests that the Court deny the motion.”
The legal back-and-forth began after the MLGCC issued letters on April 7 to Kalshi, Robinhood, and North American Derivatives (doing business as Crypto.com), instructing them to halt offerings tied to sports event contracts. Regulators argued these products fall outside legal boundaries and amount to unlicensed gambling.
Kalshi is seeking a preliminary injunction to block enforcement of Maryland’s order while the case moves forward.