Prediction Markets

The Commodity Futures Trading Commission asked a federal court to drop a suit filed by the Chicago Mercantile Exchange challenging the agency's decision to let Kalshi offer bitcoin perpetual futures contracts, known as perps.

People on Kalshi and Polymarket tend to be younger, tend to be poorer, and tend to lose money on the sites, which is how most gambling works.

A ruling by the U.S. Court of Appeals for the 9th Circuit last week allowing Nevada to regulate prediction markets like Kalshi creates a split with the 3rd Circuit, meaning the Supreme Court will ultimately have to settle the issue.

Five payment companies were named as defendants in a case that could set a precedent for both prediction markets and the financial firms working with them.

The CFTC said it was using 'emergency' powers to keep the lights on at Kalshi after the New York Attorney General sued the sports-betting company.

The company is being accused of failing to seek a license from the New York State Gaming Commission and avoiding paying taxes "like licensed casinos and mobile sports gambling platforms do."