Kalshi is suing New York State after receiving a cease-and-desist letter regarding its event contracts related to sports outcomes. The article discusses the legal complexities of defining these contracts under the Commodity Exchange Act and whether they qualify as "excluded commodities."

Polymarket has sued Massachusetts, claiming that the U.S. Commodity Futures Trading Commission (CFTC) has exclusive authority over prediction markets, not state regulators. This lawsuit highlights growing tensions as states attempt to classify sports-related prediction contracts as gambling, which would require local licensing. Recent rulings in Massachusetts and other states have further complicated the legal landscape for prediction market operators.