Arkansas files third state lawsuit as Kalshi CEO celebrates the election prediction market
Kalshi CEO’s midterm victory lap runs into a third state crackdown in one week
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Arkansas Attorney General Tim Griffin sued Kalshi, alleging that it offered illegal gambling to state residents in violation of the state’s Deceptive Trade Practices Act. The state is seeking recovery of funds, penalties, taxes and injunctive relief; Kalshi argues that its event contracts are federally regulated derivatives not subject to state gambling laws. The article says the Third Circuit backed Kalshi, while the Sixth and Ninth Circuits backed the states, and that related litigation now involves around 20 states.
The Arkansas lawsuit has once again brought the conflict between prediction markets and state gambling regulation into the courts, while the split among the federal appeals courts cited in the article shows that the application of state laws remains unsettled.
Source:Cryptopolitan · cryptopolitan.com