Bettors on prediction markets are wagering that the U.S. economy added more jobs in September than Wall Street economists currently forecast.
The decision adds to a split among US appeals courts, opening the door to potential Supreme Court review.
The countersuit comes two months after the state sued Kalshi on similar grounds.
The lawsuit follows a similar action New York filed against rival platform Kalshi two months earlier.
The state is seeking a court order against the prediction market platform even as the Trump administration moves to override state gambling regulations.
The regulator's warning follows reports last month that it was reviewing the event-contract category internally.
The ruling is the second in less than a month finding that states have a role in regulating sports-related event contracts, according to CNBC.
Traders on Kalshi and Polymarket now see Democrats favored, if narrowly, in the fight for Senate control, according to a CNBC report.
Traditional sportsbooks continue to lead the football betting market, but newer prediction-market platforms are drawing increased attention, according to a CNBC report.
The 2025 football season and 2024 presidential election helped push prediction markets into prominence, according to CNBC.