{"id":15977,"date":"2025-09-13T05:39:27","date_gmt":"2025-09-13T03:39:27","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=15977"},"modified":"2025-09-13T05:39:27","modified_gmt":"2025-09-13T03:39:27","slug":"kashi-takes-a-stand-in-the-face-of-legal-challenges-over-prediction-markets","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/13\/kashi-takes-a-stand-in-the-face-of-legal-challenges-over-prediction-markets\/","title":{"rendered":"Kashi Takes a Stand in the Face of Legal Challenges Over Prediction Markets"},"content":{"rendered":"

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Prediction market platform Kalshi has pledged to contest a recent lawsuit from the US state of Massachusetts, which charges the firm with providing unauthorized sports betting to its citizens.<\/p>\n

\u201cWe are proud to be the organization that has innovated this technology and are prepared to defend it once again in a court of law,\u201d a representative for Kalshi informed Cointelegraph on Friday.<\/p>\n

\u201cPrediction markets are a vital advancement of the 21st century, and all Americans should have the opportunity to utilize them,\u201d Kalshi remarked.<\/p>\n

Kalshi is ready to battle amid additional legal obstacles<\/h2>\n

The civil lawsuit, submitted<\/a> on Friday by the Commonwealth of Massachusetts in Suffolk County Superior Court, alleged that Kalshi camouflages sports betting as \u201cevent contracts\u201d and breaches the state\u2019s stringent gambling statutes.<\/p>\n

Source: <\/em>Dustin Gouker<\/em><\/a><\/figcaption><\/figure>\n

\u201cKalshi is infringing upon the Commonwealth\u2019s stringent sports wagering laws and regulations by offering unauthorized sports betting to Massachusetts inhabitants,\u201d the document asserted.<\/p>\n

It additionally claimed that as of May 2025, over three-quarters of Kalshi\u2019s trading activity originates from sports\u2014a larger proportion, the document noted, than industry leaders DraftKings or FanDuel.<\/p>\n

However, the Kalshi spokesperson indicated that Massachusetts regulators opted for legal action instead of engaging directly to resolve the situation:<\/p>\n

\u201cInstead of having a conversation with Kalshi as numerous other states have done, Massachusetts is attempting to obstruct Kalshi\u2019s innovations by depending on outdated regulations and perceptions.\u201d<\/p><\/blockquote>\n

Kalshi asserts it’s governed by the CFTC<\/h2>\n

Kalshi has previously contended that the Commodity Futures Trading Commission (CFTC) oversees it at the federal level and that it does not fall under state gambling authority.<\/p>\n

It has received<\/a> cease-and-desist notifications from other states, including Arizona, Montana, Ohio, and Illinois.<\/p>\n

Related: <\/strong><\/em>Polymarket teams with Chainlink to enhance market resolution accuracy<\/strong><\/em><\/a><\/p>\n

The case arrives as the blockchain-enabled prediction market Polymarket is reportedly gearing up for a launch in the US<\/a>.<\/p>\n

Citing sources acquainted with the situation, Business Insider reported<\/a> on Friday that Polymarket is contemplating a return to the US while seeking new funding that could potentially more than triple its June valuation of $1 billion. One investor placed the company\u2019s value at as much as $10 billion.<\/p>\n

This occurs just days after Polymarket\u2019s CEO Shayne Coplan stated<\/a> in an X post on Sept. 4 that \u201cPolymarket has been cleared to go live in the USA by the CFTC.\u201d<\/p>\n

\u201cStay tuned,\u201d he added.<\/p>\n

Magazine: <\/strong><\/em>Meet the Ethereum and Polkadot co-founder who wasn\u2019t in Time Magazine<\/strong><\/em><\/a><\/p>\n