Kalshi's Legal Battle: Navigating the Complexities of Gaming Regulation

Federal Judge Andrew Gordon ruled that Kalshi, a prediction market platform, must comply with Nevada gaming rules, impacting its sports betting contracts. Kalshi argued its operations fall under the CFTC's jurisdiction, but the judge deemed this as avoiding state regulation. Kalshi is currently appealing the decision.

A federal judge has determined that Kalshi, a platform for prediction markets, must adhere to Nevada's gaming regulations, a decision that complicates its ability to facilitate contracts for sports betting. Chief Judge Andrew Gordon made the decision public on Tuesday, lifting an earlier injunction that shielded Kalshi from Nevada gaming authorities.

Kalshi, known for offering wagers on political events, claimed its operations should be governed by the U.S. Commodity Futures Trading Commission. However, Judge Gordon dismissed this, considering it an inappropriate means of bypassing local law and undermining congressional intent regarding gaming contracts.

According to the judge, Kalshi's interpretation would centralize all sports betting under the CFTC, disrupting longstanding state-level gaming regulation, contrary to Congress's objectives. Kalshi is appealing the decision, but neither their lawyer nor the Nevada attorney general's office has commented on the matter.

(With inputs from agencies.)