New Mexico Lawmaker Makes a Push for Legal Online Sports Betting
A New Mexico lawmaker is pushing for legal online sports betting in the Land of Enchantment.
Sports betting is legal in the state, which became the fifth to legalize it in 2018. However, New Mexico is one of the few states where bettors must wager at retail locations based at tribal casinos.
This week, the Indian Affairs Committee met, and Rep. John Block requested that the tribes hold open discussions on online sports betting.
New Mexico has collected sports betting taxes, but revenue would be significantly higher if people could place bets online. Bock stated that the state is missing out on “tens of millions” of tax dollars.
Online sports betting is already happening
Many residents of New Mexico already bet on sports online, but at offshore sites rather than state-regulated ones. As a result, the state doesn't receive any tax revenue. Block pointed to this fact.
“It would be really nice, at least, to get some more revenue for people, because if people are already here operating in the state illegally online, then that robs you, it robs us, it robs every single New Mexican of that tax revenue,” said Block.
The tribes have a compact with the state to operate sports betting, and any changes to expand to online sports betting would have to be made under the compact.
Sports betting issue arises as New Mexico deals with Kalshi lawsuits
While the offshore sports betting issue persists in the state, a prediction-market battle has come to the forefront.
Attorney General Raul Torrez launched a lawsuit against prediction market giant Kalshi, saying he believes that Kalshi is in violation of New Mexico gambling laws. He said that unlicensed sports bets, or "trades", made through Kalshi violate the gaming laws. He noted that bets can only be placed through tribal compacts or licensed sites regulated by the state through the New Mexico Gaming Control Board.
The law in question dates back to 1953 and makes it illegal to offer gambling outside the regulated framework of the Gaming Control Act. The lawsuit against Kalshi also points out that the prediction market platform allows players aged 18+ to trade, while the legal gambling age in New Mexico is 21.
There are also lawsuits filed by New Mexico tribes against Kalshi, which argue that sports trading revenue interferes with the revenue the tribes take in from sports betting.
The CFTC fires back
The Commodity Futures Trading Commission (CFTC) is the federal arm that regulates prediction markets. The CFTC has fired back with its own lawsuit against the state of New Mexico.
The CFTC is seeking an injunction to keep the New Mexico gaming laws from allowing prediction market platforms to operate. Similar to lawsuits in other states, the CFTC has argued that federal law authorizes prediction markets to operate event contracts, which states have countered are just like regular sports bets.
