Connecticut is seeking to block Kalshi from offering sports-related prediction contracts to state residents. The lawsuit escalates a dispute over whether the company's products fall under federal commodities regulation or state sports wagering laws.
The state filed the complaint Wednesday and is asking for an injunction against Kalshi. The filing alleges that the online prediction market is operating sports wagering without the required licence.
The case could shape how prediction markets with sports exposure are classified in the US and where the line sits between federal jurisdiction and state-level regulation.
