News linked to both this project and an event.
According to CoinDesk, Utah has filed criminal charges against prediction market platform Kalshi (KalshiEX LLC) and co-founders Tarek Mansour and Luana Lopes Lara for illegally promoting gambling in the state. Prosecutors have filed a total of 14 counts, including one felony for alleged ongoing unlawful activity, 12 counts promoting online gambling, and one misdemeanor count for gambling. The prosecution is based on testimony from an undercover investigator with the Utah Attorney General's Office.
Odaily reports: Tarek Mansour, CEO of prediction market platform Kalshi, said the company is discussing additional user protection measures with regulators and is willing to accept raising the age threshold for prediction market participation to 21.It is understood that Kalshi will impose a monthly deposit limit of $2,500 on users under 21 and set up special accounts for such users designed to curb high-risk behavior. Tarek Mansour emphasized that Kalshi, as an exchange regulated by the U.S. Commodity Futures Trading Commission (CFTC), does not directly act as the counterparty to user trades, and that funds lost by users flow to other traders. However, he also acknowledged that the platform needs to work with regulators to develop appropriate protection rules and fill existing regulatory gaps. (Bloomberg)
Odaily reports: The Commodity Futures Trading Commission (CFTC) has filed a lawsuit in the U.S. District Court for the District of Utah seeking to block Utah from taking action against prediction markets. A week earlier, Utah officials sued prediction market platform Kalshi and its affiliates, seeking to recover up to $60 million in profits allegedly obtained illegally through event contracts.The CFTC stated that Utah is attempting to circumvent congressional intent and restrict the operations of exchanges registered by the agency. The complaint notes that the relevant event contracts qualify as swaps under the federal Commodity Exchange Act, and exchanges offering trading in such contracts are subject to CFTC regulation; Utah's actions infringe on federal regulatory authority over commodity derivatives markets.This lawsuit is yet another dispute between federal and state governments over jurisdiction concerning prediction markets. New Jersey officials in September of last year asked the U.S. Supreme Court to hear their case against Kalshi, and similar lawsuits have been filed in Michigan, Ohio, and other states; as of Tuesday, the Supreme Court had not announced whether it would accept the case. (Cointelegraph)
According to court documents, the New York State Gaming Commission has filed a petition with the New York County branch of the New York State Supreme Court, asking the court to compel Kalshi to comply with an investigative subpoena issued on July 31 under Section 104(7) of the state's Racing Law. The subpoena concerns sports event contracts, business directed at users under 21, advertising that describes products as betting, and equity and corporate structure. The Commission said the move is intended to determine whether to impose civil penalties on Kalshi and other parties and the amount of such penalties; Kalshi has not yet publicly responded. Previously, the New York Attorney General and the Governor sued Kalshi on July 31, seeking at least $36 billion. Federal Judge Torres rejected Kalshi's request for a preliminary injunction on July 7; appellate courts are divided, with the Third Circuit supporting Kalshi and the Ninth and Sixth Circuits supporting state regulation.
Odaily reports: The U.S. Commodity Futures Trading Commission (CFTC) has signed a memorandum of understanding with the National Basketball Association (NBA) to share information and establish communication mechanisms to maintain fair trading in prediction markets and prevent insider trading and market manipulation. The NBA announced that Kalshi and Polymarket will become its preferred prediction market platforms. The NBA is the third U.S. professional sports league to sign a similar agreement with the CFTC, following the National Hockey League (NHL) and Major League Baseball (MLB), which have already established cooperation with the CFTC.
According to Dune data, nominal trading volume for crypto-related event contracts on Kalshi and Polymarket reached $2.7 billion last week, setting an all-time high. Bitcoin short-term up/down contracts were particularly active, with Kalshi's 15-minute Bitcoin price prediction contracts seeing single trades exceeding $1 million, and some traders using trading bots to capture opportunities in the final seconds before contract expiration.Cryptocurrency has now become the second-largest trading category on both platforms after sports. Crypto trading platforms including Coinbase, Crypto.com, Gemini, and Kraken are expanding their businesses by applying for relevant licenses or partnering with prediction markets. Meanwhile, declining spot trading volume on centralized exchanges is also pushing crypto platforms to seek business diversification. However, as multiple U.S. states mount legal challenges against sports-related prediction contracts, the regulatory trajectory could also affect the industry's development. (Bloomberg)
Odaily reports: Crypto wallet Phantom began rolling out Kalshi prediction market services to U.S. users on October 23, allowing users to trade event contracts directly within the app, with availability set to gradually expand over the coming weeks. Users must complete Kalshi's KYC verification and can fund trades through a Phantom Cash account using CASH, a U.S. dollar-pegged stablecoin. Due to lawsuits in various states, Phantom will temporarily restrict sports, election, political, and certain other category markets in some states.Kevin Jacobs, Phantom's general counsel, said the company believes the U.S. Commodity Futures Trading Commission (CFTC) has clear jurisdiction over such products and will comply with state restrictions during the litigation. (The Block)
According to Bloomberg, the Commodity Markets Council, representing derivatives exchanges such as CME Group and commodity traders, has informed the U.S. Commodity Futures Trading Commission (CFTC) that perpetual futures pose significant risks to market integrity, urging regulators not to approve the perpetual oil futures contract proposed by prediction market platform Kalshi. The organization also called on the CFTC to plug regulatory loopholes to prevent retail investors from accessing offshore trading platforms through this channel.
Odaily Report: US Defense Secretary Pete Hegseth has banned personnel at the Pentagon and defense agencies from using non-public information to place bets on upcoming military operations, including trading on prediction market platforms such as Kalshi and Polymarket.In a memo sent Tuesday to senior officials at the Department of Defense and related defense agencies, Pete Hegseth stated that the ban covers both classified and unclassified information, and noted that betting on prediction markets could expose military operations and affect operational security and personnel judgment.The directive follows allegations that US Army soldier Gannon Ken Van Dyke was charged in April with using classified information about the capture of Venezuelan leader Nicolás Maduro to bet on related outcomes on Polymarket and earn more than $400,000. Prosecutors said he participated in planning and executing the operation, and Van Dyke has pleaded not guilty to all charges.In February of this year, Israeli authorities arrested and charged a military reservist and a civilian on suspicion of using classified information to bet on Polymarket regarding the outcome of an Israeli military strike on Iran. (Cointelegraph)
Odaily News: Kalshi and BitGo have reached a new arrangement allowing certain customers to borrow against their custodied crypto assets and use the loan proceeds as margin for leveraged perpetual futures trading on the Kalshi exchange. The arrangement is aimed at clients of Kalshi Prime, Kalshi's US-registered futures commission merchant, and adopts a tripartite collateral management structure; loans are provided by its affiliated lending company Kalshi Katalyst, with collateral assets held at BitGo Bank & Trust. Eligible collateral assets include Bitcoin, Ethereum, and stablecoins deemed compliant with the GENIUS Act, with additional custodians expected to be onboarded in the future. Kalshi Prime CEO Jeff Bandman said the arrangement allows customers to participate in trading without having to exit their crypto asset positions.
Odaily reports: Nasdaq-listed US online brokerage Webull plans to open perpetual contract trading to eligible US clients starting in November, with the first batch of products including Bitcoin and other crypto assets, and intends to expand access before the end of the year. The contracts will be listed on the CFTC-regulated Kalshi exchange, with clearing handled by Kalshi's clearinghouse, and Webull users approved for futures trading will be able to trade through their existing futures accounts. (WSJ)
According to KUTV, Utah Attorney General Derek Brown announced on Tuesday that he has filed a civil lawsuit against prediction market platform Kalshi and several of its affiliates, alleging its online services constitute a public nuisance. The complaint was filed in Utah’s Third Judicial District Court. Brown alleges that Kalshi provided services to more than 32,000 verified Utah residents, violating the state’s anti-gambling laws and causing “significant and continuing harm” to a large number of citizens. The state is seeking a court order to block Kalshi from offering online bets on sports, elections, politics, culture, and “mention”-related events, while permitting the use of geolocation service providers to enforce the injunction. The suit also seeks up to $60 million in damages.
Odaily reports: Prediction market platform Kalshi, along with its affiliates and two Susquehanna-owned trading firms, has been sued by Utah Attorney General Derek Brown, who alleges they facilitated illegal gambling in the state starting in 2024.Brown stated that the state has asked the court to order the companies to disgorge approximately $30 million to $60 million in profits obtained through allegedly unlawful event contracts. Utah claims that Kalshi provided services to more than 32,000 users in the state and caused significant losses.In February of this year, Kalshi sued the state of Utah after its legislature classified prediction market betting as gambling. In August, a judge ruled that relevant federal law governing the U.S. Commodity Futures Trading Commission (CFTC) does not preclude the application of state gambling laws.In September, an appellate court denied Kalshi's request for an injunction to block it from operating in the state during the appeal. The U.S. Supreme Court is considering whether to take up New Jersey's case against Kalshi over alleged illegal sports betting, a dispute concerning the regulatory authority of state governments versus the CFTC over event contracts. (Cointelegraph)
According to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) filed documents in court last Friday rebutting the legal challenge brought by the Chicago Mercantile Exchange Group (CME) against its new perpetual futures policy, arguing that CME lacks standing. The CFTC stated that CME raised only claims of heightened competition without demonstrating credible and imminent financial loss, noting that CME’s crypto futures trading volume has risen rather than fallen since the policy adjustment. In context, the CFTC approved Kalshi’s first Bitcoin perpetual contract this May and indicated it would regulate such products on a case-by-case basis under the futures category. CME, however, argues that perpetual contracts lack an expiration date, do not qualify as futures, and should instead be classified as swaps subject to a different regulatory framework. The CFTC also noted that CME previously told investors during an earnings call that there was no market demand for perpetual contracts and that they were not a substitute for CME’s existing futures products, asserting that CME cannot maintain contradictory positions in court and before investors.
Odaily reports: Crypto.com's prediction market trading platform and Novig filed suit against Missouri officials in federal court last Friday, asking a judge to bar the state from taking enforcement action against their sports event contracts. Previously, Missouri Attorney General Catherine Hanaway sent cease-and-desist letters in September to six platforms, including both companies, requiring them to stop offering sports event contracts to state residents within 30 days or obtain a state license and pay a 10% tax. Crypto.com said the cease-and-desist letter was mistakenly sent to Foris DAX, Inc. rather than the trading platform itself; the Missouri Constitution only permits the issuance of two mobile sports prediction licenses, and both have already been granted, making obtaining a license unfeasible.The two platforms argue that the Commodity Exchange Act grants the CFTC exclusive jurisdiction and preempts state law. Kalshi, Polymarket, Robinhood, and Underdog, which also received cease-and-desist letters in September, had not filed suit in Missouri federal court as of Sunday. Because multiple U.S. federal appellate courts are divided on whether federal law preempts state regulation, Novig has asked the court to issue a preliminary injunction during the litigation to maintain the status quo.
Odaily reports: A survey covering 4,506 adults across the United States shows that most respondents oppose betting on U.S. elections and other government actions through prediction markets. 69% of Democratic respondents and 61% of Republican respondents opposed betting on election results. The survey was conducted from September 30 to October 5.The prediction market industry, driven by platforms such as Polymarket and Kalshi, allows users to bet on U.S. elections, changes in government policy, and sporting events. The related business has triggered multiple regulatory lawsuits between state governments and federal agencies.The survey shows that 43% of respondents oppose betting on professional sports events, while 29% expressed support. The administration of U.S. President Donald Trump is pushing for the industry to be regulated by the U.S. Commodity Futures Trading Commission (CFTC). 39 states and the District of Columbia have submitted amicus briefs, stating that the dispute between federal and state regulators has evolved into a nationwide jurisdictional conflict. (Cointelegraph)
Taiwan, China has blocked the websites of Coinbase and prediction market platform Kalshi. It is reported that the New Taipei District Court has authorized Taiwan's communications regulator and internet registration authorities to restrict local users' access to the relevant platforms. Taiwan had previously blocked Polymarket, Kalshi's main competitor. (Bloomberg)
Tarek Mansour, CEO of prediction market company Kalshi, said that if U.S. courts side with states claiming gambling regulatory authority over such businesses, Kalshi would be forced to move overseas.Despite two federal courts having ruled against its position, Tarek Mansour said he remains "quite confident" about Kalshi's legal standing in the United States. (CoinDesk)
Odaily News: Prediction market platform Kalshi filed a petition for en banc rehearing with the U.S. Court of Appeals for the Sixth Circuit on the 13th, requesting that the full court reconsider the three-judge panel's rulings in "Kalshi v. Schuler (Ohio)" and "Kalshi v. Orgel (Tennessee)." In late September, the three-judge panel ruled against granting Kalshi a preliminary injunction against the Ohio gaming regulatory and enforcement agency, while also vacating a previously issued preliminary injunction against the relevant Tennessee agency. In its petition, Kalshi argued that the three-judge panel misinterpreted the Commodity Exchange Act in two ways, including whether federal securities law preempts state gaming law and whether sports event contracts constitute "swaps." Kalshi stated it is still waiting for the right timing to file a petition with the Supreme Court.
According to The Block, the US Federal Trade Commission (FTC) is conducting an early review of the online sports betting industry, focusing on alleged false or misleading advertising by betting companies such as FanDuel and DraftKings. Prediction market platforms like Kalshi and Polymarket are expected to fall outside the scope of this review.