Kalshi's 'not gambling' defense collapses as judges let states enforce their laws

Kalshi court losses pile up as judges refuse to block state gambling laws

Kalshi had a brutal week in federal court: the Ninth Circuit refused to rehear its Nevada loss, the Second Circuit upheld rulings letting New York and Connecticut enforce gambling laws, and Arkansas's attorney general filed a new suit. At the heart of every case is whether prediction markets are federally regulated swaps or plain gambling. The Trump administration and the CFTC side with Kalshi; 40 states back New Jersey's push for Supreme Court review.