By SectorWire desk ·
The AGA urged Texas legislators to pursue lawsuits against prediction markets at an Austin hearing. Kalshi warned legislators about offshore alternatives.
Texas legislators heard calls for litigation against prediction markets alongside Kalshi’s warnings about offshore alternatives.
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The case could affect whether states can regulate sports prediction markets and the safeguards operators face.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.