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Kalshi Sues Minnesota Over New Law Blocking Prediction Markets
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Kalshi has ramped up its battle over prediction markets by filing a lawsuit against the state of Minnesota.
Key facts
- The Minnesota lawsuit also arrives amid scrutiny from federal lawmakers
- Kalshi has ramped up its battle over prediction markets by filing a lawsuit against the state of Minnesota
- Kalshi says its event contracts should be treated as federally regulated financial products, not traditional betting
- Supporters of the legislation have also pointed to risks they say the industry has not adequately addressed
Summary
Kalshi says its event contracts should be treated as federally regulated financial products, not traditional betting. Rather than focusing on civil enforcement or narrower product restrictions, the new law includes criminal penalties for users or businesses operating, promoting, or facilitating certain prediction market products. Supporters of the bill argue that prediction market platforms function similarly to sportsbooks, but operate in a legal gray area without meeting the standards they believe should apply to gambling businesses. Supporters of the legislation have also pointed to risks they say the industry has not adequately addressed.