Kalshi, a prediction market platform based in San Francisco, has filed a lawsuit against regulators in Nevada and New Jersey over cease and desist orders. The orders were issued by the regulators, who claim that Kalshi’s platform violates state gambling laws.
Kalshi allows users to bet on the outcome of various events, such as elections and sports games, using a peer-to-peer trading system rather than traditional betting methods. The company argues that its platform is not a form of gambling, but rather a tool for individuals to hedge against risks and uncertainties in the world.
The lawsuit, filed by NEXT.io on behalf of Kalshi, alleges that the regulators’ actions are infringing on the company’s First Amendment rights and stifling innovation in the prediction market industry. Kalshi is seeking to have the cease and desist orders overturned and is requesting damages for lost revenue and reputational harm.
The outcome of the lawsuit could have implications for the future of prediction markets in the United States, as regulators continue to grapple with the legality and classification of these platforms. Kalshi’s case could set a precedent for how these types of platforms are regulated and operated in the future.
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