"Nevada gambling regulators sued the prediction markets company Kalshi on Tuesday, saying the platform's rapid growth forced their hand. The Nevada Gaming Control Board and the state attorney general sued in Carson City District Court shortly after a federal appeals court rejected a request by Kalshi to stop the state from taking action. The state is seeking an order to stop Kalshi, the country's largest prediction market, from operating what it sees as an unlicensed sports betting operation."
"Kalshi has said that its markets are "event contracts," a financial instrument regulated by the Commodities Futures Trading Commission. The CFTC on Tuesday sided with another events-contracts company that is fighting with Nevada regulators, and its chairman, Michael Selig, filmed a video statement defending the new platforms. "Today, the CFTC is taking an important step to ensure that these markets have a place here in America," Selig said."
Nevada gambling authorities and the state attorney general filed suit to stop Kalshi from operating what they call an unlicensed sports betting operation, citing the platform's rapid expansion. The state acted after a federal appeals court rejected Kalshi's request to block state enforcement. Regulators noted Kalshi did 27 times as much business on Super Bowl Sunday versus the prior year while regulated Nevada gambling declined. Kalshi asked a federal court to assume the new case, arguing federal law and CFTC oversight apply because its markets are event contracts. The CFTC publicly supported similar platforms, other states have sued, and many observers expect the Supreme Court to weigh in.
Read at Business Insider
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