Gate News Report, March 19 — The prediction market platform Kalshi faces criminal gambling charges in Arizona, with its monthly trading revenue exceeding $110 million. State authorities accuse Kalshi of offering unlicensed sports and election betting, leading to strict regulatory scrutiny. Kalshi’s rapid growth has been driven mainly by sports event contracts, which constitute the majority of its platform fee revenue. The platform’s monthly active users increased from 600,000 to 5.1 million within a year. Despite legal challenges, Kalshi claims its contracts are federally regulated financial instruments, while state officials argue these contracts resemble traditional gambling. The legal battle has expanded across multiple states, with Arizona prosecutors stating that Kalshi allows betting on elections and sports outcomes, violating gambling laws. The company faces different rulings in various state courts, highlighting ongoing uncertainty in prediction market regulation. Meanwhile, federal regulators are considering new industry rules, with the U.S. Commodity Futures Trading Commission (CFTC) reviewing public comments before drafting policy guidelines.
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