Kalshi court losses pile up as judges refuse to block state gambling laws
Kalshi can't avoid gambling law by claiming it doesn't offer gambling, state AG says.
Kalshi, a prediction market platform, is experiencing a series of legal setbacks as judges refuse to block state gambling laws in Connecticut, New York and Nevada. The company is currently facing two circuit appeals court decisions rejecting its attempts to intervene against these state laws. In addition, Kalshi is currently embroiled in a new lawsuit filed by Arkansas Attorney General Tim Griffin.
At the heart of these legal battles is the question of whether state gambling laws apply to Kalshi's platform. Kalshi argues that its products, which allow customers to wager on any conceivable outcome, are not gambling but rather "swaps" regulated by the US Commodity Futures Exchange (CFTC). However, Arkansas law is determined by substance rather than semantics, according to Griffin. He emphasized that gambling on an unregulated platform is strictly prohibited by Arkansas law.
The Trump administration appears to be backing Kalshi, with Donald Trump Jr. serving as an advisor to the company in exchange for a substantial equity deal. Kalshi contends that its offerings are not gambling, but Arkansas Attorney General Griffin maintains that the law is clear: gambling on an unregulated platform is unlawful.
Written by urgent.news from Ars Technica's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
