Nevada, along with 36 other states and the District of Columbia, is co-leading a multistate effort asking a federal appeals court to reject claims that federal financial regulations override state sports betting laws.
The brief, filed Tuesday in Kalshiex LLC v. Martin in the U.S. Court of Appeals for the Fourth Circuit, argues that Congress did not clearly or intentionally strip states of their traditional power to regulate gambling, including sports betting, and that such authority remains within the state police powers.
“Nevada is the foundational home of sports wagering, and states, not federal financial regulators, have decades of experience protecting consumers, preserving the integrity of sporting events, and addressing real-world harms such as underage gambling,” said Nevada Attorney General Aaron D. Ford. “I am proud to co-lead this effort with Ohio and a bipartisan coalition of states to make clear that Congress did not quietly take away states’ authority to regulate sports wagering, and that allowing unregulated betting nationwide would upset that balance without clear authorization.”
The states’ brief emphasizes that gambling regulation has historically been managed by states, and courts require clear congressional intent before displacing state authority in areas of traditional state control.
The coalition warns that accepting the plaintiff’s theory could leave sports betting largely unregulated, exposing consumers, particularly young people, to increased harm and undermining existing state frameworks.
Nevada highlights its comprehensive licensing, enforcement, and consumer-protection systems, which are designed to address the risks associated with sports betting. The brief notes that federal derivatives regulations were never intended to replace these protections.
The brief supports Maryland officials defending the state’s authority to enforce gambling laws.
Attorney General Ford co-led the brief with Ohio Attorney General Dave Yost, and attorneys general from Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Hawaiʻi, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin, and the District of Columbia also joined the effort.
