Connecticut files new lawsuit against Kalshi in legal fight

Connecticut has filed a new lawsuit against Kalshi in an expanding legal fight over prediction markets. Nearly half of U.S. states have pursued legal action that the article describes as an existential challenge to prediction markets. Local and federal courts have issued mixed decisions on efforts to halt platforms such as Kalshi. Kalshi said in a Thursday online post that the results of its legal battles so far are close to 50-50. Connecticut ordered Kalshi to shut down its sports betting in late last year. Connecticut said the activity violated state gambling regulations. Kalshi sued Connecticut to stop the order. Kalshi initially lost the case and appealed to the Second Circuit Court of Appeals. The Commodity Futures Trading Commission sued Connecticut and other states over their interventions in prediction markets. The commission claimed that the states have no authority over activities on a federally regulated trading platform. Legal experts said the U.S. Supreme Court could eventually consider the dispute.