The New Mexico Department of Justice has filed a lawsuit against the popular online betting company Kalshi. The NMDOJ is accusing Kalshi of unlawfully offering online sports betting, which is against the state’s gaming laws.

They said that the company is avoiding state laws in a handful of ways, including allowing sports betting through something they call “event contracts,” and allowing users who are 18 to place sports bets, all while Kalshi has not obtained any gaming license from the state.

Kalshi has ignored that framework entirely while offering online sports betting within the state,” Torrez said in a press release. “We are filing this lawsuit to protect the integrity of our laws, our regulatory system, and most importantly, consumers.”

Kalshi describes itself as a federally regulated exchange where users trade contracts on real-world outcomes — not a sportsbook. Court records show Kalshi has sued Minnesota and Rhode Island to block similar state actions; the U.S. Court of Appeals for the Third Circuit blocked New Jersey from enforcing its gaming laws against the platform earlier this year, while a Nevada court ordered Kalshi to halt operations in that state pending appeal.