Connecticut sues Kalshi, alleging operation of illegal sports betting markets
Connecticut is suing prediction market platform Kalshi, saying it's running sports betting in violation of state laws.
The dispute started after the state ordered Kalshi to shut down last year, but the company kept operating.
Kalshi appeals amid regulatory split
Kalshi tried to fight back, but lost and is now appealing.
This isn't just a Connecticut thing: almost half of US states are challenging prediction markets like Kalshi over legal rules.
The Commodity Futures Trading Commission (CFTC) supports Kalshi and says these platforms should be regulated federally, not by each state.
Courts have been split: courts in New Jersey and Arizona ruled in Kalshi's favor, while others forced it to pull back services.
Experts say this state vs. federal clash could end up at the Supreme Court soon.