Federal regulation looms as 11 states go after prediction markets
Kalshi is facing off with state regulators around the US, who claim that prediction markets are a form of gambling and recognize that they are a significant source of potential revenue.
State regulators and lawmakers are not pleased with prediction markets, and momentum is building across the US.
On March 20, Carson City District Court Judge Jason Woodbury in Nevada made his state the first to issue a temporary ban on prediction market Kalshi from operating. Gaming officials said that the platform violated state gambling laws.
Nearly a dozen other states have also issued various forms of legal proceedings. Most have filed cease-and-desist letters, while Arizona has even brought criminal charges against Kalshi. Other states are considering new legislation for prediction markets.
