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Connecticut expands legal fight with Kalshi over prediction market betting
Kalshi said outcomes in its prediction market legal battles are currently close to 50-50, as Connecticut seeks a court order to halt sports betting on the platform.
CoinDesk reports Connecticut has filed a new lawsuit targeting prediction markets platform Kalshi, adding to an ongoing, multi court fight over whether states can regulate sports event contracts offered by a federally regulated trading venue.
The new case follows Connecticut’s earlier dispute with Kalshi that began late last year, when the state ordered the company to shut down sports betting on the grounds the activity violated state gambling rules. Kalshi initially lost in that effort, and later appealed to the U.S. Court of Appeals for the Second Circuit.
CoinDesk also notes the Commodity Futures Trading Commission has sued Connecticut and other states over their prediction market interventions, arguing states have no authority over activities of a federally regulated trading platform. In its latest filing, Connecticut is asking the court to implement the order to halt Kalshi’s sports betting in the state.
Connecticut Attorney General William Tong said sports event contracts are not meaningfully different from sports betting and should not be exempt from state consumer protection laws aimed at protecting minors, preventing problem gambling, and safeguarding users’ money and personal information. Kalshi, in turn, pointed to its broader legal record, stating that results so far are currently close to 50-50, underscoring the uncertainty across the courts.