Key Points:
- KalshiEX LLC faces lawsuit from Arizona Department of Gaming
- Kalshi claims its prediction market is regulated by federal law
- Kalshi’s lawyers argue its activities are akin to a futures market
A company that lets people bet on everything from where Taylor Swift and Travis Kelce will get married to whether Katie Hobbs will get another four year term as Arizona governor is asking a federal judge here to stop the state from trying to shut it down.
In a new lawsuit, KalshiEX LLC contends that its prediction market is regulated by the Commodity Futures Trading Commission. And that, according to the company’s team of lawyers, makes what it offers to Arizona residents beyond the reach of the Arizona Department of Gaming.
Kalshi is seeking quick action in the form of a preliminary injunction.
That’s because the Arizona Department of Gaming already has sent a letter to Tarek Mansour, the company’s chief executive officer, arguing that Kalshi’s practices run afoul of laws that regulate gambling on professional and college sports. Douglas Jensen, the agency’s chief law enforcement officer, said state law says only companies with a state license can do that.
