Connecticut sues Kalshi over sports betting

• Connecticut has sued Kalshi, seeking to stop its sports betting contracts in the state.
• The lawsuit adds to a wider legal fight involving nearly half of US states.
• Mixed court rulings could eventually push the dispute towards the US Supreme Court.

Connecticut has sued Kalshi, seeking to enforce an order stopping its sports betting operations in the state.

The state previously ordered Kalshi to stop sports betting, saying the activity violated its gambling regulations.

“Sports event contracts are no different than sports betting and are not magically shielded by federal law,” said Connecticut Attorney General William Tong.

Kalshi has challenged the state’s position, while the Commodity Futures Trading Commission says states cannot interfere with federally regulated trading platforms.

Court decisions have been mixed, with New Jersey blocked from banning Kalshi while Arizona’s criminal case against the company was halted.

Kalshi said its legal battles are currently producing results that are “close to 50-50” across different courts.

The CFTC is pursuing federal rules for prediction markets, while states continue arguing that sports contracts are gambling products.