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Kalshi and its fight with states over sports-related prediction markets could reach the U.S. Supreme Court, CEO Tarek Mansour says.
New Jersey has requested review, but whether the court will hear the case remains unresolved.
The dispute centers on whether Kalshi’s sports contracts fall under state gambling laws or federal derivatives regulation. Sports trading accounts for most of Kalshi’s revenue.
“I think the process will play out the way it’s going to play out,” Mansour said.
Dozens of states have taken legal action over sports-related trades on Kalshi. Federal appeals courts have split on the issue, and Kalshi has lost some recent cases.
In New Jersey’s action, however, Kalshi secured a significant appeals court victory.
State Gambling Laws Versus Federal Oversight
States contend that prediction markets are subject to their gambling laws and gambling taxes. Kalshi argues that its sports contracts are financial derivatives regulated federally by the Commodity Futures Trading Commission, rather than gambling subject to state supervision.
Mansour expressed strong confidence in Kalshi’s legal position, arguing that the Commodity Exchange Act gives the CFTC authority over those contracts.
Sports Remains Central to Kalshi
Mansour said sports currently generates close to 65% of Kalshi’s revenue, down from around 95% nine months ago. Despite that lower share, sports remains a majority of the company’s revenue.
The report says a Supreme Court defeat could expose Kalshi to state oversight and constrain profits from sports wagers. A victory could support its ambitions to expand into a broader trading platform.
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Source: As reported by Central Oregon Daily.
