One of the most consistent issues we're seeing across the board in the USA right now is state going after prediction markets, who have opened the door for sports betting to arrive where things are not legal. This is currently the case in Alabama, as prediction markets are legal at the federal level, allowing for people to get their bets in. Well, a new sports betting lawsuit in Alabama won't help the legalization efforts moving forward.

That's what a lot of people have on their minds, as Kalshi is now facing another lawsuit in Alabama as well. Over the past year, several lawsuits have arrived against betting prediction markets, with recent news coming up in California, Washington and more. In this particular case, Kalshi indeed is involved, with a class-action lawsuit being presented. In Alabama, there's no legal sports betting or online casino gambling allowed.

This is where things get complicated with Kalshi, Robinhood and others - these outlets provide futures bets for sports, while casino-style betting is also present. While Alabama betting is in the process of trying to move forward with legal options, the last thing lawmakers and officials want is for this kind of activity to be present. It goes against everything the local government has been fighting against.

As has been discussed by other states, this opens a side door for people to take advantage of these apps and place their bets, which shouldn't be the case when betting is illegal. If Alabama is going to keep seeing bets being posted, they want it to be done in a regulated fashion and not in a free for all. Nothing has been finalized with this particular lawsuit, so it's unknown when the rules in Alabama are going to be changed with Kalshi, but it can't be ruled out that things will stay the same too.

Untaxed revenue is a major talking point against Kalshi

It goes without saying, but untaxed revenue is a major taking point against Kalshi right now. For a while, Kalshi and other prediction markets have been operating in states like Alabama where things are illegal, but Alabama isn't seeing any money out of this. How is it fair for the state that its citizens are placing bets, but there's no tax revenue coming in for Alabama? This of course is something that Kalshi won't complain about.

However, with millions of dollars being made, Alabama understandably would want a piece of the pie there. The fact that the state isn't getting any benefits is alarming for several different reasons. This would all change of course if Alabama had legal sports betting across the board, as we've seen just how much states have been able to generate in revenue each month. Unfortunately, Alabama is still behind with the push and there's no estimated date where things might change.

"Kalshi has been hit with a second class action lawsuit in Alabama for operating an illegal sports betting website," sports betting attorney Daniel Wallach recently wrote on social media. (Alabama) has among the strictest anti-gambling laws in the US; 40+ sweepstakes casino lawsuits. The plaintiffs' class action bar is now training its sights on PMs."

As you can see, things are pretty serious here and countless people in Alabama want to do whatever they can to bring operations from Kalshi to a close. Will that end up being the case and legal top sportsbooks will be able to go into operation? It's a bit up in the air, but more clarity is needed in the near future. Until that arrives, people will keep placing their sports bets, as they aren't breaking any laws by using Kalshi.

Alabama's efforts for legal sports betting haven't been positive

While this battle with Kalshi continues to make headlines, it's important to remember that Alabama's efforts for legal sports betting haven't been positive at all. Recently, multiple sports betting bills have been shot down, as there's been a clear disconnect between Republicans and Democrats.

One of the main issues here is that Republicans in Alabama are concerned about the growing numbers for sports betting addiction across the USA in recent years. We're seeing this in Florida, as it has been reported multiple times that records are being broken in terms of the number of people calling the gambling hotline.

This of course is a major concern, but if people are going to be placing sports wagers regardless, why not make sure things are getting done in a regulated fashion. Illegal betting is an issue, while people using prediction markets just speaks to the popularity of betting throughout the state. This is all something Republicans and Democrats must discuss as soon as possible, especially before the new set of sports betting bills get presented for everyone to look at.