Kalshi loses appeals as courts reject block on gambling laws
Tech Desk
Two US circuit appeals courts have rejected Kalshi's attempts to block state gambling laws in Connecticut, New York and Nevada, and the company also faces a new lawsuit from Arkansas Attorney General Tim Griffin.
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The dispute centres on whether state gambling statutes apply to prediction markets, which Kalshi says operate as "swaps" regulated only by the US Commodity Futures Exchange (CFTC). The Trump administration backs Kalshi, with Donald Trump Jr. acting as an advisor in return for an equity stake.
"Kalshi insists that its products are not gambling," but "Arkansas law is concerned with substance, not semantics," Arkansas Attorney General Tim Griffin said yesterday when announcing his lawsuit against Kalshi. Kalshi's prediction market lets customers "wager money on the outcome of just about anything" despite the fact that "gambling on an unregulated platform is squarely prohibited by Arkansas law," he said.
