Kalshi faces mounting losses over state gambling laws
Kalshi’s legal strategy of challenging state gambling laws has run into repeated setbacks. Judges have refused to block the laws, leaving the prediction-market platform subject to further state-level enforcement and regulatory proceedings.
State attorneys general contend that Kalshi’s contracts involve wagering and therefore fall under state gambling statutes. The company’s position that its markets do not constitute gambling has not been enough to secure relief from the courts in the cases described.
The decisions add legal pressure on Kalshi as it seeks to operate across multiple jurisdictions, while also illustrating the continuing tension between prediction markets and state gambling regulators.