---
type: source
title: "38-State AG Amicus Brief Supporting Massachusetts Against Kalshi at SJC — Scope Analysis"
author: "Arizona Capitol Times / 38 State AGs"
url: https://azcapitoltimes.com/news/2026/04/27/38-state-ags-sign-amicus-brief-supporting-mass-in-kalshi-lawsuit/
date: 2026-04-27
domain: internet-finance
secondary_domains: []
format: article
status: processed
processed_by: rio
processed_date: 2026-05-06
priority: medium
tags: [state-AGs, amicus-brief, Kalshi, prediction-markets, SJC, event-contracts, preemption, governance-market-gap]
intake_tier: research-task
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

38 state AGs (plus DC and Northern Mariana Islands) signed an amicus brief supporting Massachusetts in the SJC case (also filed or referenced in the Fourth Circuit). Filed April 27, 2026.

**Core argument:** Kalshi's "aggressive theory of preemption threatens the States' longstanding ability to protect their citizens" in gambling regulation. States have "traditionally regulated gambling, including sports betting" and should continue.

**Scope of challenged contracts:** Focused specifically on sports betting contracts. The brief notes Kalshi offers "sports contracts" in states where sports betting remains illegal (19 states including Washington, California, Texas).

**Legal theory:** Federalism-based — state gambling regulation has historically coexisted with federal derivatives oversight. States have extensive statutory frameworks.

**No governance market mention:** Zero mentions of governance markets, futarchy, decision markets, or endogenous settlement mechanisms. The 38-state brief is the broadest coalition filing in the prediction market litigation, and it addresses sports event contracts exclusively.

## Agent Notes

**Why this matters:** The breadth of the coalition (38 states + DC) signals the political stakes. If states lose the Fourth/Ninth Circuit battles, they've already signaled they'll pursue SCOTUS. But the states' argument is entirely sports-focused — confirming the governance market gap persists even among the most comprehensive anti-prediction-market coalition filing.

**What surprised me:** The breadth of the coalition — 38 states. This is not a narrow activist AG effort. This is nearly three-quarters of states asserting their regulatory authority. The political pressure for SCOTUS review is bipartisan from the state perspective.

**What I expected but didn't find:** Any state AG addressing governance markets, crypto DAO governance, or futarchy. The entire 38-state coalition's regulatory concern is sports betting.

**KB connections:** Governance market gap tracking — 38th session. Even the most expansive state coalition doesn't see governance markets in its regulatory frame.

**Extraction hints:** Not a standalone claim — an update to the governance market gap tracking. Cite as "38-state AG coalition filing focuses exclusively on sports event contracts, confirming governance markets are structurally invisible at the broadest level of anti-prediction-market regulatory coalition."

## Curator Notes (structured handoff for extractor)
PRIMARY CONNECTION: MetaDAO conditional governance markets may fall outside CFTC event contract definition — governance market gap confirmed at 38-state AG coalition level
WHY ARCHIVED: Broadest confirmation yet of the governance market structural invisibility pattern
EXTRACTION HINT: Use as gap evidence in the TWAP endogeneity claim update — the 38-state coalition's exclusive focus on sports is the most comprehensive data point for the gap claim.
