Prediction markets will face a new set of state attorneys general in 2027. In the midterm elections, Democrats flipped attorney general seats previously held by Republicans in Texas, Georgia, Ohio, Iowa and Kansas, according to Covers. Because state AGs lead much of the legal fight against sports event contracts, those five changes could reshape the battle between states and platforms like Kalshi.
Three of the outgoing Republicans, Iowa's Brenna Bird, Kansas's Kris Kobach and Ohio's Andy Wilson, signed or led the multistate effort backing New Jersey's request for U.S. Supreme Court review of its Kalshi dispute. Their successors now decide whether to continue that fight, expand it, or step back.
Why Attorneys General Matter
Kalshi and other platforms argue the CFTC has exclusive authority over their sports event contracts, which would make state gambling laws irrelevant. More than three dozen state AGs argue the contracts are wagers and that states can regulate them.
AGs have several tools, Covers notes: they can send cease-and-desist letters, seek court orders, and defend or drop existing enforcement actions. Who holds the office directly affects which of those tools get used.
Covers also notes that Democrats have generally been more skeptical of prediction markets than Republicans aligned with the White House and the CFTC. But as the cases below show, several of the outgoing Republicans were already among the most aggressive opponents of the platforms.
The Five New Attorneys General
Texas: Nathan Johnson
Johnson, a Democratic state senator, won the open seat against Republican state Sen. Mayes Middleton after Ken Paxton ran for the U.S. Senate.
- Texas prohibits sports betting and has resisted destination casinos.
- In 2025, Johnson proposed a constitutional amendment that would have let voters decide on casino resorts and sports betting.
- He hasn't taken a public position on sports event contracts. But Covers expects more scrutiny than under Paxton, who didn't join the Supreme Court amicus brief and largely avoided state-led action against prediction markets.
Holland & Knight's post-election analysis also expects the incoming Texas AG to join most states opposing sports event contracts. For local context, see our report on Texas election results and poker rooms.
Georgia: Tanya Miller
Miller, a state representative, former prosecutor and civil rights attorney, defeated Republican state Sen. Brian Strickland, chair of the Senate Judiciary Committee.
- Georgia, like Texas, still prohibits sports betting.
- Her predecessor, Chris Carr, didn't join the Supreme Court brief.
- Private litigation against Kalshi is already underway in Georgia. Miller must decide whether the state brings its own case.
Georgia also elected Democrat Keisha Lance Bottoms as governor, who campaigned on a constitutional amendment for casino gambling, according to Holland & Knight.
Ohio: John Kulewicz
Kulewicz defeated Republican state Auditor Keith Faber to succeed appointed AG Andy Wilson.
- Ohio launched sports betting in 2023.
- The Sixth Circuit ruled against Kalshi at the preliminary injunction stage, and Wilson led the coalition seeking Supreme Court review.
- Kulewicz inherits that litigation and must decide whether Ohio keeps leading the multistate effort. He said during the campaign that he'd be selective about joining multistate lawsuits.
Ohio also elected Democrat Amy Acton as governor, who Holland & Knight says is open to iGaming with safeguards. We've covered Ohio's earlier actions in our report on Ohio's prediction market cease-and-desist letters.
Iowa: Nate Willems
Willems, a labor lawyer and former state representative, defeated AG Brenna Bird.
- Kalshi sued Bird and state gaming officials to block enforcement of Iowa gambling laws. A federal judge denied Kalshi's preliminary injunction, and Kalshi appealed.
- Willems inherits the case. It's unclear whether he'll continue supporting Supreme Court review.
- Iowa already allows statewide mobile sports betting.
Kansas: Chris Mann
Mann, a former police officer and prosecutor, beat Kris Kobach in a rematch of their 2022 race.
- Kansas launched legal sports betting in 2022 and is one of the few states not directly involved in a prediction market legal challenge.
- Kobach signed the Supreme Court brief backing New Jersey.
- Kansas is in the 10th Circuit, which includes Utah, where officials have challenged sports event contracts. A favorable Utah ruling on appeal could strengthen Kansas's position. We covered that fight in our report on the CFTC suing Utah.
The National Picture
The AG changes land at a busy moment in the litigation:
- A federal judge in New York ruled this week that Novig's contracts are sports betting.
- The Second Circuit denied an operator's injunction request against New York and Connecticut.
- The Ninth Circuit denied rehearing en banc on November 4, 2026, opening a 90-day window for a Supreme Court petition.
- Utah filed felony charges against an operator and its co-founders, according to Holland & Knight.
Democrats also won control of both chambers of Congress, which Holland & Knight expects will bring hearings and document requests for prediction market operators and the CFTC. Nearly 30 prediction market bills have been introduced since 2025, and none has passed.
Historical Precedent
State attorneys general have shaped gambling markets before. In 2015, then-New York AG Eric Schneiderman went after daily fantasy sports operators, arguing their contests were illegal gambling. That fight helped push DFS into state licensing regimes across the country. A similar dynamic is playing out now: AGs are arguing that a new product is gambling under a different name, and courts are increasingly agreeing.
What This Means for Bettors and Poker Players
For anyone in these five states, the most likely result is more scrutiny, not less, especially in Texas and Georgia, where sports betting isn't legal and prediction markets have been one of the few ways to bet on sports.
For poker players, the lesson is familiar. Gray-market products can disappear or change quickly when state enforcement shifts. Texas poker players have seen this with recent cardroom raids, such as the Katy Poker raid.
If you bet on sports, it's worth knowing your options. Our sportsbooks guide compares betting sites, and our reviews of BetOnline Sportsbook and SportsBetting.ag explain how established offshore books work. For poker, see our US poker sites guide.