Observers of Kalshi-versus-state lawsuits had, until last week, seen three cases that followed a familiar pattern — even if judges’ rulings weren’t always the same. A state would issue a cease-and-desist order against Kalshi, ordering it to shut down its sports event contracts, and when it tried to enforce the order, the prediction market would sue in federal court. “The suit is significant, because it marks a new development in the fight over the legality of sports prediction markets,” Andrew Kim a partner at Goodwin, told InGame. “In the first round, we had the cease-and-desist letters. In the second round, you had Kalshi going on offense, filing preemptive declaratory judgment actions against Nevada, New Jersey, and Maryland. “Now you have round three, which is a state regulator going on offense, seeking to enforce state gaming laws in state court, which may not be as receptive to federal preemption arguments.”