Kalshi celebrates legal victory in Nevada
The operator’s CEO took to LinkedIn after a motion to dismiss a recent lawsuit the company filed was denied.
Key Points
- Kalshi has been involved in a series of legal disputes since the November 2024 election
- The company filed a lawsuit in Nevada, claiming its contracts are legal
A district court in the state of Nevada has denied a request to dismiss a lawsuit filed by Kalshi. The company recently sued the Nevada Gaming Control Board, the Nevada Gaming Commission, “their members in their official capacities” and Nevada Attorney General Aarron Ford.
The suit was to prevent these parties from “pursuing civil or criminal enforcement against Kalshi for offering event contracts” statewide.
Company CEO Tarek Mansour celebrated the recent legal win on social media by posting, “Kalshi secured another big legal victory today in Nevada.”
He also expressed his gratitude to several people online.
Mansour commented, “It feels like I am saying this every week. Thank you to our CLO Rick, litigation team, the US Constitution, my mother for raising me to be stubborn, melatonin, my girlfriend for dealing with the sleepless nights and our dear traders whose volumes keep growing on Kalshi.”
However, legal challenges over whether its products are permitted around the US are not new to Kalshi.
Kalshi’s recent lawsuit against the Commodity Futures Trading Commission (CFTC) claimed the commission “wrongfully denied its application to launch a market for derivatives tied to results of congressional elections.”
The suit resulted from a recent decision made by CFTC to reject Kalshi’s proposal, which would have allowed some traders to place wagers for up to $100m on the outcome of elections. The proposal raised concerns regarding potential election interference.
The CFTC determined that US investors cannot directly bet on the outcome of the 2024 Congressional elections. The organization ruled that contracts “involving gaming and activity that is unlawful under state law and are contrary to the public interest.”
Since the initial filing, the CFTC has requested a settlement. If it is approved, this could springboard growth in political prediction markets, a form a wagering that gained traction during the 2024 US presidential elections.
Similar legal disputes are occurring in other states. Cease-and-desist orders were sent to Kalshi in both Maryland and New Jersey, resulting in Kalshi filing a temporary restraining order and preliminary injunction against the Maryland Lottery and Gaming Control Commission (MLGCC).
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