The Trump administration has backed Kalshi and Polymarket in a court fight over whether prediction markets constitute gambling. The chairman of the Commodity Futures Trading Commission says states cannot ban these markets because federal law gives the CFTC control. Several states accuse the platforms of running unlicensed casinos. Nevada has moved the furthest. A federal judge issued a temporary order that blocks Kalshi there. Kalshi appealed, and the CFTC has weighed in with a “friend of the court” briefing. The CFTC chairman argues these contracts act like futures, not sportsbook bets. States say most activity is in sports, and age rules also differ.
