Prediction markets boom as legal fights spread across US states
A Louisiana court ordered 10 prediction-market operators, including Kalshi, Polymarket US and Robinhood, to block state users and barred them from brokering, clearing or settling event contracts there. The CFTC and the US government separately sued Arkansas to stop its case against Kalshi, arguing the contracts fall under federal derivatives law. Kalshi is reportedly discussing a funding round at a $65 billion valuation, while the company told CNBC a CFTC notification issue involved a procedural error affecting a handful of contracts.
What changed The reported funding discussions contemplate a $25 billion valuation increase over Kalshi’s Series G two weeks earlier, not a completed financing.
Why it matters The Louisiana restrictions reach infrastructure providers as well as consumer platforms, limiting operators’ ability to serve state residents through brokerage and settlement arrangements.
What to watch next Whether the CFTC pursues charges over Kalshi’s contract notifications remains unresolved, separately from its efforts to defend federal jurisdiction.
Finance Magnates ↗