Key facts
- Texas Attorney General Ken Paxton has not joined other states in legal actions against prediction markets.
- Paxton's office previously stated that Texas gambling rules could apply to prediction markets.
- Paxton declined to sign onto a letter urging the CFTC not to overstep its regulatory role on prediction markets.
- Paxton's opponent, James Talarico, has received substantial donations from a PAC funded by casino magnate Miriam Adelson.
- Talarico supports legalizing gambling in Texas for economic and educational benefits.
Texas Attorney General Ken Paxton has notably refrained from joining legal actions against prediction markets, a stance that contrasts with his office's earlier statements on gambling regulations. While many states have pursued legal challenges against platforms like Kalshi, Paxton's office has reportedly not responded to requests to join such efforts. This inaction comes despite a June statement from Paxton's office indicating that Texas rules prohibiting gambling could extend to prediction markets where chance plays a role.
Paxton did not sign onto a letter from 44 state attorneys general to the CFTC, arguing that the commission's light-touch regulation of prediction markets encroached on states' traditional gambling oversight. He also did not join a separate legal brief arguing that the CFTC should not be the sole regulator of these markets.
Meanwhile, Paxton's Democratic opponent in 2024, Texas state Rep. James Talarico, has received significant financial support from the Texas Sands PAC, which is funded by casino billionaire Miriam Adelson. Talarico has previously voted to support legislation aimed at legalizing casino gambling in Texas, citing potential job creation and increased tax revenue for public schools. He has denied accepting money directly from the Adelson family but acknowledged taking funds from groups advocating for gambling legalization.