US government vs Arkansas: is Kalshi getting special treatment?

[Botnake]

Interesting news, the US government is suing Arkansas because the state filed a lawsuit against Kalshi, accusing the platform of operating an illegal gambling business.

This is the first time I've heard of the US government suing one of its own states, or maybe prediction markets are becoming more confident because the federal government is defending them in these legal battles. This is just Kalshi, so how much more for Polymarket, which also has the backing of Trump Jr.

Read the story.

Feds and CFTC sue Arkansas over prediction market crackdown

[yahoo62278]

Interesting news, the US government is suing Arkansas because the state filed a lawsuit against Kalshi, accusing the platform of operating an illegal gambling business.

This is the first time I've heard of the US government suing one of its own states, or maybe prediction markets are becoming more confident because the federal government is defending them in these legal battles. This is just Kalshi, so how much more for Polymarket, which also has the backing of Trump Jr.

Read the story.

Feds and CFTC sue Arkansas over prediction market crackdown

I'd say there will be more states that get the same notice as the article stated that multiple states are trying to do the same as Arkansas. If anything I'd say the government is only looking to control the money that can be made in taxes and the state get 0 of it. Just my opinion though.

[Hispo]

Interesting news, the US government is suing Arkansas because the state filed a lawsuit against Kalshi, accusing the platform of operating an illegal gambling business.

This is the first time I've heard of the US government suing one of its own states, or maybe prediction markets are becoming more confident because the federal government is defending them in these legal battles. This is just Kalshi, so how much more for Polymarket, which also has the backing of Trump Jr.

Read the story.

Feds and CFTC sue Arkansas over prediction market crackdown

And people wonder why there are folks who despite USA federal government.

I am sure this is not the first instance of the federal government suing one of its states, but the context of suing one of the states because they have already sued a company which is alledgelly introducing gambling/betting to the people of the state without having a license is kind of a wacky situation if you think about it.

If the federal government of the USA succeeds with this lawsuit, then it would create a powerful precedent and other suits against Kalshi in the USA could be dismissed.

[Botnake]

I'd say there will be more states that get the same notice as the article stated that multiple states are trying to do the same as Arkansas. If anything I'd say the government is only looking to control the money that can be made in taxes and the state get 0 of it. Just my opinion though.

So in this sense, it's a good opportunity for prediction markets now, because they have found an ally and possibly new investors will be more motivated to compete with Kalshi and Polymarket. Recently, DraftKings announced additional investment in prediction markets, so I have a feeling that big sportsbooks in the US would also become more aggressive, like FanDuel and Fanatics as they already have prediction markets but are not as popular as the leading ones.

[Fortify]

Interesting news, the US government is suing Arkansas because the state filed a lawsuit against Kalshi, accusing the platform of operating an illegal gambling business.

This is the first time I've heard of the US government suing one of its own states, or maybe prediction markets are becoming more confident because the federal government is defending them in these legal battles. This is just Kalshi, so how much more for Polymarket, which also has the backing of Trump Jr.

Read the story.

Feds and CFTC sue Arkansas over prediction market crackdown

What a waste of taxpayer money for what is effectively just benefiting a handful of companies and making a few owners richer. Every single sports bet that's ever been placed to now has been an "event contract" as the federal agency calls it, yet states have been regulating that for decades. I guess this is an attempt to take back and codify this power under federal government, taking away the law making around it from states. Strange they picked gambling as a line to draw rather than say the legalization of cannabis which has been pretty successful all round. Strangely it appears that Trump Jr. is exiting his advisor position with Kalshi but that's probably due to Democrats who will start launching separate investigations into these sorts of family dealings now they have a degree of power again.

[shinratensei_]

It sounds like cronies trying to defend their boss's business. So many states already issued ban to the prediction market, yet CTFC is suing them on the federal court. Hopefully, Federal court does something about this. Prediction market is a gambling sites. It has to comply with the gambling regulation.

So in this sense, it's a good opportunity for prediction markets now, because they have found an ally and possibly new investors will be more motivated to compete with Kalshi and Polymarket. Recently, DraftKings announced additional investment in prediction markets, so I have a feeling that big sportsbooks in the US would also become more aggressive, like FanDuel and Fanatics as they already have prediction markets but are not as popular as the leading ones.

How can it be considered as an opportunity while more and more stats are demanding to ban those prediction market? Even a state like Lousiana already got an order from the court to ban the prediction market. Prediction market is also starting to lose its power because democrats already fully taken the midterms.

[EstherBtc]

If the federal government successfully pushes back against state lawsuits targeting prediction markets, it creates a powerful legal shield. This doesn't just benefit Kalshi it sets a major precedent that could safeguard other prediction platforms operating across state lines.

[5W-KILO]

I saw this news 3 days earlier and I don't want to jump into conclusion but if anything is going to be a base of illegality in this market it's definitely going to be prediction markets.

Why did Kalshi let Trump Jr go though? I believe no one knows the real reason and the more I think about it the more I start to believe that there is more than meet the eye.

Maybe the Trump family won't be able to stay clean in the future and they don't want to get dragged in the mess too? There is no prediction markets that's free of manipulation and illegal operations.

[gracreavix]

If the US federal government is fighting for you, then it means you have something on them or they are benefiting something from you. I think i would go for the benefits. The benefits could be huge for them to defend you or it is their policy to help businesses out when they need one. Even for Trump Jr. to be their advisor is something very important. Big players here are involved in kalashi. And why will Akansas state say they are operating an illegal business. Isn't the business verified? or business can be said to be legal and one day, someone will say it is illegal. The business is registered. What is now the fuse about it. Could be that Akansas is not gaining anything from kalashi maybe that is why they did what they did. I also think that with this backing by the US federal government, there shouln't be any misuse of power by kalashi. Just as the government are helping you, they can still be your downfall.