US states challenge prediction markets over sports contracts
US state regulators and authorities are challenging prediction-market sports contracts through court action, while the CFTC has not taken a definitive position, according to the report. Kalshi has sued Nevada, New Jersey, Maryland and Ohio, securing preliminary injunctions in some cases; Massachusetts and Native American tribes in California argue that its sports contracts amount to unlicensed gambling.
The disputes leave operators and regulators facing uncertainty over whether sports event contracts fall under state gambling laws.