Kalshi Stands Firm: No Pullback on Prediction Platform Unless CFTC Says Stop
Kalshi’s digging in its heels, vowing to keep its sports event prediction contracts rolling across the U.S. unless the federal Commodity Futures Trading Commission (CFTC) tells it to quit.
Defiant in the Face of State Pushback
CEO and co-founder Tarek Mansour shrugged off cease-and-desist letters from six states: Nevada, New Jersey, Ohio, Illinois, Montana, and Maryland, saying he’s “not necessarily very worried” about the heat.
The platform’s stance is clear: it’s regulated by the CFTC, not state gaming boards, and it’s sticking to its guns.
Mansour’s doubling down with lawsuits against Nevada and New Jersey, arguing their orders stomp on the Commodity Exchange Act.
He’s betting on federal law trumping state rules, framing Kalshi’s offerings as legit financial tools, not gambling gimmicks. “We’re like a financial exchange,” he said in an interview, “where event outcomes are the underlying assets.”
Kalshi’s Case: Finance, Not Gambling
The company’s got a solid playbook to back its position. First off, Kalshi says the CFTC’s its only boss. “If the CFTC tells us to stop, we’ll stop,” Mansour stated. “Until then, we’re good.” The platform’s been under CFTC oversight since day one, and with no federal red light yet, it’s full speed ahead.
Mansour likens their sports contracts to futures on crops, federally okay, even if states grumble.
Next, Kalshi insists its contracts aren’t gambling, they’re financial instruments with real economic juice. Unlike sportsbooks, where the house sets odds, Kalshi’s peer-to-peer setup lets users trade on event outcomes, from games to elections.
A federal court win in 2024, letting them list political contracts after a CFTC block, bolsters their case. Plus, the CFTC hasn’t blinked at their sports markets so far, giving Kalshi room to breathe.
Mansour’s also pointing fingers, hinting casino lobbyists are stirring the pot with state regulators. He even called out Nevada’s Gaming Control Board for blasting their cease-and-desist on social media before notifying Kalshi, sloppy, he says, and proof of bigger agendas at play.
States Line Up, Kalshi Pushes Back
Six states aren’t buying Kalshi’s line. Nevada kicked things off, claiming the platform’s sports contracts break state gaming laws. New Jersey followed, flagging college sports trades as unconstitutional. Ohio, Illinois, Montana, and Maryland piled on, all demanding Kalshi shut down its “unlicensed wagering”.
Their beef: it looks like sports betting, smells like sports betting, and needs state licenses to run.
Kalshi’s hitting back hard. Lawsuits in Nevada and New Jersey argue state regulators can’t touch a federally regulated exchange. Mansour compares it to states banning corn futures, absurd, he says, since federal law calls the shots. The platform’s $320 million haul from March Madness trades shows the stakes, big money’s on the line, and Kalshi’s not folding without a fight.
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