NEW Jersey

Connecticut has sued Kalshi in a bid to halt the platform’s sports event contracts in the state, intensifying a broader legal clash over prediction markets. With state and federal courts issuing mixed decisions, the fight is increasingly framed as one that could eventually reach the U.S. Supreme Court.

Kalshi and the wider prediction market sector are fighting state regulators over whether event contracts should be treated as derivatives or gambling. Recent developments in Nevada, Michigan, Ohio, Minnesota, North Carolina and New Jersey show a fast-moving legal map with major implications for the industry.