TLDR Kalshi faces court hearings in Massachusetts and Maryland this week that could shape the future of prediction markets Flutter Entertainment reports Q1 earnings on May 6, with DraftKings, Wynn Resorts, and Coinbase following on May 7 The CFTC continues backing Kalshi with lawsuits and filings against multiple states over prediction market jurisdiction The U.S. Senate passed a ban on members using prediction markets and is pushing the House to follow Gambling bills covering online casinos, sweepstakes bans, and sports betting are advancing in several states
Prediction market company Kalshi is heading into two major court hearings this week. The outcomes could help determine whether states or federal regulators have authority over event contracts.
On May 4, the Massachusetts Supreme Judicial Court will hear oral arguments in the state’s case against Kalshi. A lower court previously granted an injunction against the company’s sports event contracts.
An appellate court later issued a stay, letting Kalshi keep operating. The case was then moved to the state’s highest court.
The Commodity Futures Trading Commission filed an amicus brief supporting Kalshi in that case. The agency argues that event contracts fall under federal jurisdiction, not state gambling laws.
Kalshi’s Legal Battles Spread Across Multiple States
On May 7, the Fourth Circuit Court of Appeals will hear oral arguments in Kalshi’s Maryland case. A federal judge denied Kalshi’s request for a preliminary injunction last August.
Earlier this year, the Third Circuit ruled in Kalshi’s favor in a case against New Jersey. But the Sixth Circuit denied the company emergency relief, showing courts remain split.
Wisconsin also sued Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase in late April. The state claims they violated gambling statutes. The operators have moved those cases to federal court.
The CFTC then filed a federal lawsuit against Wisconsin. The