In addition to receiving cease-and-desist orders from several states (Arizona, Illinois, Montana, and Ohio), and ongoing litigation against New Jersey state gaming regulators in the U.S. Court of Appeals for the Third Circuit, KalshiEx LLC (Kalshi) is also now embroiled in litigation with regulators in Maryland and Nevada. Kalshi operates as a designated contract market, which allows adults in all 50 states to make financial trades on a broad range of topics — from sports to the weather.
The United States is navigating a new era of regulatory oversight and the balance of power between federal and state regulators following the 2024 election cycle. As federal agencies retreat from and/or realign their regulatory enforcement priorities, state attorneys general (AGs) are increasingly taking the lead in policing companies — especially those that are consumer-facing — bridging perceived gaps left by shifting federal priorities, and in some cases, emboldened to expand regulatory enforcement into relatively new arenas.
A lawsuit between KalshiEx LLC (Kalshi) and New Jersey state gaming regulators in the Third Circuit is testing the balance between federal commodities regulation and state authority regarding sports betting.
In a significant regulatory shift, the Texas Lottery Commission has enacted an immediate ban on lottery ticket courier services in the state, effective February 24. This decisive move marks a stark departure from the commission’s previous position that it lacked jurisdiction over these couriers. State officials in Texas backing the change assert that groups who buy mass quantities of lottery tickets using unregulated lottery couriers avoid safeguards in the regulatory system and undermine public trust in the lottery system.
Indiana Attorney General (AG) Todd Rokita recently partnered with the Indiana Gaming Commission to alert consumers about advertisements for illegal gambling.[1]
Stephen Piepgrass, co-leader of Troutman Pepper Locke’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, was interviewed in the February 17, 2025 CasinoReviews.net article, “Sweepstakes Casinos: Thriving in an Ever-Changing Industry – Interview with Attorney Stephen C. Piepgrass.”
In the article, Stephen provides valuable insights into the legal hurdles sweepstakes casinos are up
Among the several provisions on the ballot in the recent election, Missouri citizens voted for Amendment 2, which will legalize online and retails sports betting. The amendment won by a small margin of less than 7,500 votes.
Stephen Piepgrass, practice group leader of the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group, appeared in the November 13, 2024 Nasdaq Trade Talks video, “Trends in iGaming, Cyber Security and Regulatory Developments.”
Gambling machines in Kentucky have recently come under increased scrutiny following the enactment of House Bill 594, which amended the definition of “gambling device” under Kentucky law, effective June of last year. The law significantly impacts the legality of certain gaming devices, requiring industry participants to adjust their product offerings within the state.
A gambling compact between the state of Florida and the Seminole Tribe of Florida, which allows for sports betting off tribal lands, will remain in place after the U.S. Supreme Court denied a petition for review filed by Florida casino operators. This decision will have a significant impact on states’ authority to regulate gambling, especially gambling facilitated by Indian Tribes, moving forward.