Kalshi, a prediction markets platform and main rival of Polymarket, is involved in a complex legal dispute in the United States, led by regulators in the state of Connecticut. This week, the company achieved a temporary victory, managing to suspend the enforcement actions taken by local authorities, according to the portal The Block.
Among the founders of Kalshi is the Brazilian Luana Lopes Lara, 29, who became the youngest billionaire in the world to earn her fortune independently. A graduate in Computer Science from MIT, Luana took an unconventional path before entering the financial sector: she studied ballet and even performed professionally in Austria. In 2018, she and Lebanese Tarek Mansour, also an MIT graduate, founded Kalshi.
The judicial conflict began after the Connecticut Department of Consumer Protection (DCP) issued, on December 2, cease and desist orders against Kalshi, Robinhood, and Crypto.com, accusing them of offering sports betting without authorization.
The suspension of these measures was determined by federal judge Vernon Oliver, who ordered the DCP to stop any action against Kalshi while the court evaluates the company's request for a preliminary injunction.
In the action, Kalshi argues that its products are classified as financial derivatives, regulated and supervised by the Commodity Futures Trading Commission (CFTC). For this reason, it claims that Connecticut's gaming legislation does not apply to the case and that the state would be exceeding its authority.
Connecticut authorities have until January 9 to respond to the complaint, while Kalshi must present new arguments by January 30. Oral hearings are scheduled to take place in mid-February.