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 facing a series of court losses as judges refuse to block state gambling laws in Connecticut, New York, and Nevada. The main issue revolves around whether state gambling laws apply to Kalshi's platform, which offers swaps that can only be regulated by the US Commodity Futures Exchange (CFTC).
Despite Kalshi's claim that its products are not gambling, Arkansas Attorney General Tim Griffin announced a lawsuit against the company, asserting that Arkansas law is focused on the substance rather than semantics. Kalshi's prediction market allows customers to wager money on the outcome of nearly any event, but Arkansas law prohibits gambling on unregulated platforms.
Additionally, Kalshi is currently involved in a separate lawsuit filed by the Arkansas attorney general. The Trump administration has sided with Kalshi, with Donald Trump Jr. serving as an advisor to the company in exchange for a substantial equity deal.
Written by urgent.news from Ars Technica Policy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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