According to HT, The Block reported that the prediction market platform Kalshi has filed a lawsuit against Nevada and New Jersey gambling regulators after receiving cease and desist orders. The regulators demanded that Kalshi stop offering sports-related contracts, arguing that such activities constitute sports betting and can only be provided by state-licensed institutions.

In the lawsuit, Kalshi argued that as an exchange regulated by the Commodity Futures Trading Commission (CFTC), it should be subject to exclusive federal regulation, and the Commodity Exchange Act takes precedence over state laws. The Nevada Gaming Control Board believes Kalshi's contracts constitute gambling because payment is entirely dependent on the outcome of external events, rather than the actions of contract participants.

Kalshi CEO Tarek Mansour stated that prediction markets are an important innovation of the 21st century, and the company will defend this technology in court. The core of the dispute is whether event or sports-based contract trading constitutes gambling regulated by state governments or financial derivatives trading under exclusive federal authority.

ChainCatcher previously reported that New Jersey regulators demanded that Robinhood and Kalshi stop providing sports betting services.