New Mexico isn’t buying Kalshi’s argument that this fight belongs in federal court. The state’s Attorney General has formally asked a federal judge to send its lawsuit back to state court, arguing the case is about enforcing New Mexico’s gambling laws—not federal commodities law.
In the filing, New Mexico points out that courts in Massachusetts, Nevada, Washington, and Michigan have already rejected similar attempts by Kalshi to remove state enforcement actions to federal court, calling the company’s removal arguments a losing strategy.
“Each theory Kalshi asserts here does not justify removal. Each has been rejected by other federal district courts.”
