"Nevada, on behalf of its Gaming Control Board, sued Kalshi in February in an effort to block the prediction site from operating in the state. Officials maintain that Kalshi has failed to acquire the appropriate state gaming licenses that would cover the kind of betting activity its users are engaged in."
"In his order, Woodbury wrote that Kalshi was not licensed under the Nevada Gaming Control Act, and that, given Kalshi's policy of taking a commission from contracts purchased through its system, it was clearly operating a 'percentage game' (which the state defines as gambling)."
"Kalshi has argued that, due to its registration with the Commodity Futures Trade Commission, it is under that federal agency's exclusive regulatory domain, which should exempt it from state laws."
Kalshi is under scrutiny as Arizona's Attorney General filed a 20-count criminal complaint against the online prediction market for illegal gambling. Nevada has also temporarily banned Kalshi from operating due to a lawsuit from its Gaming Control Board, which claims the company lacks necessary gaming licenses and violates state law by allowing users under 21. A judge ruled that Kalshi operates a 'percentage game' and is not licensed under the Nevada Gaming Control Act. Kalshi argues it is regulated by the Commodity Futures Trade Commission, but the legal standing of this claim remains uncertain.
Read at TechCrunch
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