Kalshi Takes Legal Action Against US Regulators Over Sports Wagering Ban

^{Pictured: Kalshi CEO Tarek Mansour}

Prediction market platform Kalshi has filed lawsuits against the Nevada Gaming Control Board (NGCB) and the New Jersey Division of Gaming Enforcement (DGE) after both regulators ordered the company to halt its sports betting operations.

Kalshi CEO Tarek Mansour confirmed the legal battle, arguing that state authorities have misinterpreted the nature of prediction markets. 

The lawsuits, filed on March 28, seek to prevent state-level enforcement actions against Kalshi’s sports trading markets, which regulators claim operate illegally.

The platform maintains that its operations are fully compliant with federal law and regulated by the Commodity Futures Trading Commission (CFTC). In a LinkedIn post on March 30, Mansour criticized the state-level crackdowns, stating that the cease-and-desist orders “fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets.”

“I can’t speak to why they are taking this action, but prediction markets have proven their use,” Mansour wrote. “So it is a shame that these authorities are still trying to censor them. We are left with no choice: sue.”

Mansour’s post in LinkedIn