TLDR Kalshi faces key hearings July 10 in Washington state court and the Ninth Circuit over sports event contracts. Connecticut and Tennessee have reply briefs due July 8 in their prediction market lawsuits. North Carolina may become the second state to tax prediction market revenue if Governor Josh Stein signs the budget. The USMNT’s win over Bosnia drew 33 million viewers, fueling more sports betting and trading activity. Kalshi and Polymarket have crossed $1 billion and $4 billion in World Cup trading volume respectively.
Prediction market lawsuits are moving forward on multiple fronts this week. At the same time, World Cup betting and trading volume keeps climbing as the tournament reaches its knockout stage.
Two hearings are set for July 10 in the Kalshi legal fight. In Washington state, King County Superior Court will hear the state’s request for a preliminary injunction against Kalshi’s sports contracts.
Kalshi had tried to keep the case in federal court but lost that effort. The case was sent back to state court, while a separate appeal at the Ninth Circuit is still pending.
That same day, the Ninth Circuit will hear a different case. Three California tribes are appealing a ruling that dismissed their claims against Kalshi.
A federal court had ruled last year that the Commodity Exchange Act overrides the tribes’ state law arguments. The Ninth Circuit also denied a request to combine this appeal with a related Nevada case.
Filing Deadlines Add Pressure in Connecticut and Tennessee
Connecticut’s reply brief in its case against the CFTC is due July 8. The state had asked a court to dismiss the CFTC’s lawsuit, and the agency responded last month.
Tennessee also faces a July 8 deadline for its reply brief at the Sixth Circuit. That case is combined with a related