"The lawsuit follows a federal appeals court's rejection of Kalshi's request to prevent the state from pursuing legal action. And it comes a day after the Trump administration claimed that only the federal government has the right to enforce the industry. Prediction markets, which allow users to bet on events such as sports, political outcomes and wars, have exploded in popularity."
"Some of that growth has been at the expense of regulated gambling; Nevada's gambling operations did less business during this year's game. "Kalshi has continued to dramatically expand its business, rather than attempting to maintain any kind of status quo," Nevada regulators wrote in a letter this month. Kalshi and rival Polymarket insist that their businesses are "event contracts" and should be regulated as financial investments rather than gambling."
Nevada's gambling regulators and attorney general sued Kalshi, alleging the company bypassed state law by operating a sports gambling market without proper licenses and by providing services to individuals under 21, violating state law. A federal appeals court rejected Kalshi's effort to block state legal action. The CFTC filed an amicus brief asserting exclusive federal jurisdiction over prediction markets. Kalshi and rival Polymarket classify their products as event contracts to be regulated as financial investments rather than gambling. Prediction markets have surged in popularity, with Kalshi doing 27 times as much Super Bowl business year-over-year, affecting Nevada casino revenue.
Read at Engadget
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