Prediction markets face a legality squeeze — Kalshi expands
Kalshi secured a margin‑trading license that makes its product more appealing to institutions even as new U.S. legislation could outlaw betting on elections and war — a regulatory one‑two punch for prediction markets. (x.com) (cnbc.com)
A March 24 National Futures Association filing shows Kalshi was approved to operate a futures commission merchant through an affiliate named Kinetic Markets LLC, a step that legally enables margin-clearing functionality on its platform. ( bloomberg.com ) Bloomberg reported Kalshi closed a Coatue-led financing round in mid‑March that raised more than $1 billion and pushed the company's valuation to about $22 billion. ( bloomberg.com ) On March 20, Nevada First Judicial District Judge Jason D. Woodbury granted the Nevada Gaming Control Board a 14‑day temporary restraining order blocking Kalshi from offering sports, election and entertainment event contracts in the state. ( venable.com ) Washington Attorney General Nick Brown filed suit on March 27 alleging Kalshi operates illegal online gambling in Washington and seeking to halt the platform’s state operations and recover consumer losses. ( atg.wa.gov ) Senators Adam Schiff and John Curtis introduced the “Prediction Markets Are Gambling Act” on March 23 to bar CFTC‑registered entities from listing contracts that “closely resemble” sports bets or casino‑style games. ( schiff.senate.gov ) On March 26, Senator Jeff Merkley and Representative Jamie Raskin circulated separate legislation that would broadly prohibit prediction‑market wagers on elections, sports, war and other government‑linked outcomes. ( publicnow.com ) Kalshi and rival Polymarket rolled out new insider‑trading restrictions and enhanced surveillance tools in late March after senators pressed for tighter market‑integrity controls. ( usnews.com ) Earlier this month Arizona’s attorney general filed 20 criminal misdemeanor counts against Kalshi entities on March 17, marking a state‑level escalation that follows civil actions and the federal regulatory scrutiny. ( actionnetwork.com )
