The ruling clears the way for the two states to pursue enforcement against Kalshi's sports markets, with restrictions potentially taking effect by early 2027.
PRDCT Regulation
the CFTC fight
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The suit challenges the CFTC's approval of single-stock perpetual futures, a product that pits exchanges against prediction market venues.
The approval lets venues offer perpetual contracts tied to single stocks, an expansion of derivatives products into territory traditionally reserved for equities exchanges.
The ruling signals legal doubt about the CFTC's authority over single-stock perpetuals while leaving existing Kalshi contracts in place for now.
The state suit adds to a widening set of state-level challenges to prediction market operators over sports and event contracts.
Major operators pulled their prediction products from Utah as the state escalated legal pressure on such contracts.
The approvals let Sporttrade operate a regulated prediction market exchange and clearinghouse, adding a new licensed venue to the sector.
The state is asking the Seventh Circuit to revive a law that would license and tax prediction market operators, testing state authority over the sector.
The move follows state pressure on sports-related event contracts and narrows Polymarket's US footprint.
The NFL player's exit from the Polymarket investment highlights conflict-of-interest limits on league personnel tied to betting and prediction firms.
State-level battles in Republican-led states are emerging as the next front for prediction market operators after the election.
Analysts expect renewed legislative scrutiny of prediction markets from both parties following the midterm elections.
The proposal would carve disaster-related contracts out of prediction market offerings, a new category of federal restriction.
Ohio lawmakers are moving to define and regulate prediction markets at the state level as activity grows.
The state's expansion into fixed-odds horse betting adds a new wagering format alongside its prediction market and sports betting offerings.
Operators are pursuing prediction market and digital instant-win products as states legalize new forms of wagering.
Scrutiny of Virginia's college sports betting framework raises questions about how such rules are drafted and enforced.
Roundups track where trading apps are permitted as state-by-state enforcement and licensing rules continue to shift.
Publisher rankings and comparisons of prediction market platforms continue as consumer interest in the products grows.
Lowenstein's periodic roundup collects recent legal and regulatory developments across fintech, crypto and trading markets.