Catenaa, Thursday, April 10, 2025- PREDICTION MARKET PLATFORM Kalshi has filed a lawsuit against the Nevada Gaming Control Board (NGCB) and the New Jersey Division of Gaming Enforcement (NJDGE) after receiving cease-and-desist orders from both state regulators.
The letters, issued earlier this year, demand that Kalshi stop offering sports-related event contracts, claiming the platform engages in unauthorized sports wagering.
Kalshi, which allows users to wager on a range of events through its prediction market platform, argues that its contracts are under the jurisdiction of the federal Commodity Futures Trading Commission (CFTC), not state regulators.
The company contends that the contracts function as a two-sided market where participants trade with one another, distinguishing it from traditional sports betting where the house sets odds and accepts bets.
Tarek Mansour, Kalshi’s co-founder, defended the platform, saying, “Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood.” He expressed confidence in defending the company’s operations in court.
In addition to the sports-related contracts, the NGCB’s cease-and-desist order also extended to Kalshi’s election-related contracts. However, a U.S. judge ruled in September 2024 that such contracts were legal and could be freely traded across the country.
In February 2025, acting CFTC director Caroline Pham announced a regulatory shift, focusing more on fraud prevention and monitoring legal violations while signaling a more flexible stance toward industry regulation.
