Kalshi lobbies DC while Colorado gap lets it operate outside state sports-betting law
Kalshi is hiring lobbying teams in Washington alongside crypto and sports gambling companies with competing prediction markets, as federal regulators weigh stricter oversight of event-contract platforms, according to MSN. The push comes while Colorado regulators debate sports betting reform and Kalshi operates there outside the state's regulated sports-betting system, per CPR and KUNC. Better Markets published an op-ed arguing that Kalshi and Polymarket are functionally offering sports betting disguised as event contracts, citing the 2018 Supreme Court decision leaving sports betting regulation to states. Colorado's situation highlights a gap between federal CFTC oversight and state gambling laws. Kalshi also faces another court deadline this week, Gambling Insider reported, and is working to keep children off its platform, Plugged In noted without specifics.
Kalshi's Washington lobbying blitz is a direct attempt to preserve the federal-state oversight gap that lets it avoid Colorado sportsbook taxes and restrictions, a structure that collapses if regulators or legislators harmonize rules. That makes the Colorado reform debate the most immediate threat to its current operating model.