Kalshi Hit With Lawsuits Across Multiple States as Prediction Markets Branded "Disguised Gambling"

Washington state has filed suit against prediction-market platform Kalshi, arguing the company is offering gambling products while labeling them as "prediction markets" in violation of state law. Nevada previously obtained a temporary restraining order that forces Kalshi to stop offering sports, election and entertainment contracts, alongside comparable restrictions imposed on Coinbase. Kalshi says its products are federally regulated derivatives. The legal fight could ultimately reach the U.S. Supreme Court.