Massachusetts Supreme Court questions Kalshi claim prediction markets are not gambling
Updated
Updated · Bloomberg · May 4
Massachusetts Supreme Court questions Kalshi claim prediction markets are not gambling
14 articles · Updated · Bloomberg · May 4
At arguments in Boston, justices challenged Kalshi's position that sports-event contracts are swaps outside state gambling law after a judge barred the company in Massachusetts.
Kalshi argues its markets are governed federally by the US Commodity Futures Trading Commission and should not face separate state oversight; the state's high court has not yet ruled.
The appeal is part of wider legal fights as states seek more control over prediction market companies, while the firms contend federal commodities rules pre-empt state gambling regulation.
As courts clash, will prediction markets be the future of finance or just a new form of online gambling?
Can insider trading be stopped when platforms turn court cases and global events into tradable assets?