Kalshi Inc. was met by federal appellate judges who appeared willing to listen to its argument that sports-event contracts don’t amount to gambling, but the panel raised concerns about the US agency the prediction market platform says is its sole regulator.
That’s also the root of Maryland gaming regulators’ misgivings, Kalshi’s counsel told the US Court of Appeals for the Fourth Circuit at oral arguments Thursday: They simply don’t like how the Commodity Futures Trading Commission is regulating the company, even though the CFTC’s self-certification process for listing sports and other event contracts was meant to be passive.
“Passive regulation” ...