Kalshi Loses Appeal in Prediction Market Gambling Law Dispute

VERA Brief

AI-generated. Grounded in the article and its cited sources.

A federal appeals court has affirmed a lower court's decision that Kalshi, a prediction market platform, must comply with state gambling laws. The court ruled that Kalshi's markets on political events constitute illegal gambling, rejecting the platform's argument that it facilitates information aggregation.

Key facts

• A federal appeals court upheld a ruling against Kalshi.
• The court decided that Kalshi's markets on political events are subject to state gambling regulations.
• A previous ruling by the CFTC characterized Kalshi's contracts as illegal off-exchange commodities.
• Kalshi argues its platform is for information aggregation, not gambling.
• The company may pursue further appeals.