Ohio Attorney General Dave Yost along with 35 other U.S. Attorneys General have formed a coalition against Kalshi for what they believe to be the creation of a loophole for unregulated gambling.

“States rightfully have the ability to protect their citizens from the negative consequences of online gambling, no matter how it’s packaged,” Yost said. “We’re protecting the unprotected.”

In an amicus brief, the coalition looks towards the U.S. Court of Appeals for the Third Circuit to side with New Jersey in a lawsuit involving mobile app Kalshi.

New Jersey Federal Courts sided with Kalshi in a lawsuit against the New Jersey Division of Gaming Enforcement on April 28, 2025, according to Holland & Knight.

Kalshi labels itself a exchange and prediction market that offers event contracts, which allows users to bet on the outcome of events such as sports championships, political elections and more.

According to Holland & Knight, the company claims that its practices are governed by the Commodity Exchange Act. Event contracts are a contentious topic in legality as many believe it to be gambling.

Other countries, such as the United Kingdom classify and regulate event contracts under gambling.