(AsiaGameHub) –   Rhode Island has initiated legal proceedings against Kalshi and Polymarket, alleging that their operation of products akin to sports betting violates state law and negatively impacts the state’s regulated income from gambling and lottery operations.

The lawsuit was filed by Attorney General Peter F. Neronha. He contends that there is “no substantive difference” between conventional sports betting and the contracts for sports events offered by both prediction market operators.

In his remarks, Neronha accused the companies of “circumventing legal statutes” and urged both to “discontinue” their operations and “repatriate their earnings.”

Attorney General Peter F. Neronha stated:

The Rhode Island Lottery (RILOT) has already observed an impact from the proliferation of prediction markets, with wagers decreasing by eight percent from 2024 to 2025. Thus, RILOT is particularly concerned about safeguarding its authority to regulate and collect revenue from the sports wagers for which Kalshi and Polymarket are now competing. While these private companies continue to profit substantially from hard-working individuals, the state’s third-largest revenue stream is detrimentally affected, which translates to less funding for crucial components of programs that serve Rhode Islanders every day.

The Attorney General provided context to highlight the importance of regulated sports betting to Rhode Island’s economy, noting that sports betting through the Rhode Island lottery has generated $2.8 billion in revenue since its legalization in 2019.