In the Nevada Supreme Court, Kalshi lost an attempt a few days ago to block a requirement that it block its customers in the state from most of the platform’s trading activities. The denial signed by three state judges on Wednesday said they were “not convinced” by the business’s emergency proposal, and that Kalshi could also face legal trouble for failing to geofence his business by a court-imposed deadline.
In Ohio, Kalshi sued the gaming regulator on Monday — earlier, following parallel court arguments by the Commodity Futures Trading Commission — seeking to block Ohio’s fine against the company on charges of running an unlicensed sports-betting operation.
The next day, a local court in Michigan granted state gaming regulators a temporary, two-week restraining order against Kalshi, preventing him from offering, advertising or facilitating sports betting there.
“Kalashi is targeting Michigan’s most vulnerable residents with sports betting masquerading as an investment – and without intervention, the harms will get worse,” Henry Williams, executive director of the Michigan Gaming Control Board, said in a statement Tuesday.
The upside for prediction platforms: The CFTC and its pro-innovation chairman, Mike Selig, are aggressively trying to make the case that Kalshi and other U.S. derivatives are under the agency’s sole jurisdiction as a regulator, arguing in their own lawsuits against several states that the contracts sold in prediction markets are effectively what an agribusiness might buy to hedge against changes in future crop prices.