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Checked Oct. 21, 2026

NM · Checked Oct. 21, 2026

Prediction market law in New Mexico

In litigation

New Mexico's attorney general is suing Kalshi, the CFTC is suing New Mexico, and several operators and tribes are in court; no rulings yet.

Attorney General Raúl Torrez sued Kalshi in Santa Fe County district court on June 4, 2026, alleging unlicensed online sports betting and a public nuisance; Kalshi removed the case to federal court on June 8, 2026, and the state's remand motion was pending as of September. The United States and the CFTC sued New Mexico on June 12, 2026, and Polymarket US, Novig and Underdog each filed federal suits against state officials between June and September. The Mescalero Apache Tribe and three pueblos sued Kalshi in federal court on May 12, 2026. No order restricting or protecting any platform was found.

Timeline of state actions

  1. Other development, Kalshi

    New Mexico's attorney general signed an Ohio-led amicus brief, joined by 38 other states and DC, asking the U.S. Supreme Court to grant New Jersey's petition in Flaherty v. KalshiEX (No. 26-299).

    Source: Ohio et al. amicus brief, U.S. Supreme Court No. 26-299

  2. Operator lawsuit, Underdog

    Underdog's exchange and brokerage sued the attorney general and Gaming Control Board members, seeking a declaration that state gambling laws are preempted.

    Source: Underdog v. Torrez complaint (D.N.M.)

  3. Operator lawsuit, Novig

    Novig's exchange, Ludlow Exchange, sued state officials in federal court (D.N.M. No. 1:26-cv-02576) after launching event contracts in New Mexico.

    Source: Underdog v. Torrez complaint (D.N.M.)

  4. Operator lawsuit, Polymarket US

    QCX LLC (Polymarket US) sued the attorney general in federal court (D.N.M. No. 1:26-cv-02100).

    Source: Underdog v. Torrez complaint (D.N.M.)

  5. Other development, Polymarket US

    The New Mexico Department of Justice declined Polymarket's request to hold off enforcement.

    Source: Underdog v. Torrez complaint (D.N.M.)

  6. Other development

    The United States and the CFTC sued New Mexico (D.N.M. No. 1:26-cv-01912) and moved for a preliminary injunction on June 18, 2026; the state moved to dismiss on July 16, 2026.

    Source: Underdog v. Torrez complaint (D.N.M.)

  7. Other development, Kalshi

    Kalshi removed the attorney general's case to federal court (D.N.M. No. 1:26-cv-01857); the state moved to remand.

    Source: Underdog v. Torrez complaint (D.N.M.)

  8. State lawsuit, Kalshi

    The attorney general sued Kalshi in the First Judicial District Court, Santa Fe County (No. D-101-CV-2026-01567), alleging unlicensed sports betting and seeking an injunction and nuisance abatement.

    Source: Underdog v. Torrez complaint (D.N.M.)

  9. Tribal action, Kalshi

    The Mescalero Apache Tribe and the Pojoaque, Sandia and Isleta Pueblos sued Kalshi in federal court in Albuquerque, alleging it enables sports betting on tribal lands in violation of their gaming compacts and the Indian Gaming Regulatory Act.

    Source: Source NM

Laws and bills

No enacted laws or pending bills specific to prediction markets found.

Court cases

Sources

  1. Source NM
  2. Underdog v. Torrez complaint (D.N.M.)
  3. Ohio et al. amicus brief, U.S. Supreme Court No. 26-299
  4. Sports betting status