Kalshi court losses pile up as judges refuse to block state gambling laws
Summary
Kalshi lost recent efforts in two federal appeals courts to block gambling laws in Nevada, New York and Connecticut. Arkansas also sued the prediction-market company, alleging it offered gambling without required licenses and failed to follow state rules; Kalshi says its markets fall under federal commodities regulation instead.Key Facts
- The Ninth Circuit let Nevada enforce its gambling laws against Kalshi’s sports bets and denied the company’s requests for panel and full-court rehearing.
- The Second Circuit upheld lower-court decisions rejecting Kalshi’s requests to block gambling laws in New York and Connecticut.
- The lower-court judges found that Kalshi had not shown it was likely to succeed in its cases, a requirement for preliminary injunctions.
- Arkansas Attorney General Tim Griffin filed a state-court lawsuit alleging Kalshi violated state gambling laws.
- Griffin alleged Kalshi accepted wagers from people as young as 18, although Arkansas requires users of electronic wagering accounts to be at least 21.
- The Arkansas attorney general also alleged Kalshi operated without required licenses, failed to pay taxes and did not comply with other gambling restrictions.
- Kalshi argues its contracts are swaps regulated by the federal commodities regulator, rather than gambling covered by state laws.
- The article says the Trump administration supports Kalshi and that Donald Trump Jr. serves as an adviser to the company in exchange for an equity deal.
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