"Kalshi argues that its platform, which allows users to trade on real-world outcomes, falls under federal jurisdiction as a regulated exchange, asserting that the Commodity Futures Trading Commission has exclusive authority over its operations."
"Montana's Gambling Control Division issued a cease-and-desist letter stating that Kalshi's activities constitute illegal gambling under state law, warning of potential legal action if the company does not comply."
"Kalshi claims that Montana's recent enforcement actions contradict a prior agreement where state officials indicated they would not pursue enforcement during ongoing litigation related to similar issues in Arizona."
Kalshi has filed a lawsuit in federal court against Montana's Attorney General and regulators, seeking to block state enforcement actions. The company argues that its event contracts should be regulated under federal derivatives law, not state gambling laws. Montana's Gambling Control Division issued a cease-and-desist letter, claiming Kalshi's activities are illegal gambling. Kalshi contends that this contradicts a previous agreement with state officials not to enforce actions during ongoing litigation. The case reflects broader tensions between federal and state regulatory authority over prediction markets.
Read at ReadWrite
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