Nearly Half of States Clash With Kalshi Over Prediction Market Regulation

A Washington judge blocked Kalshi from offering event contracts on July 21, 2026, citing state gambling law. Minnesota banned prediction markets outright. Nearly half of U.S. states now fight Kalshi over whether prediction markets are gambling or federal financial products. States cite gaming laws; Kalshi and the Trump administration argue federal oversight as financial swaps. Billions trade weekly on Kalshi and Polymarket.