India, Aug. 14 -- Connecticut has won a legal battle to apply its sports betting regulations to Kalshi's sports prediction markets after a federal judge rejected the company's request to block state enforcement.
U.S. District Judge Vernon Oliver ruled that Kalshi was unlikely to prove that Connecticut lacked the authority to regulate its sports-related contracts. The decision applies specifically to sports markets and does not cover other offerings on the platform, such as elections or news events.
Kalshi and other prediction-market platforms argue that their contracts function like financial products and therefore fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), rather than state gambling regulators. The CF...