Kalshi taps Milbank litigation team for prediction market court fights
Kalshi has retained a litigation team from Milbank to handle court fights that could reshape US prediction market rules. The engagement, first reported August 5, comes as Milbank has expanded its litigation group. Kalshi is led by co-founders Tarek Mansour and Luana. The platform holds CFTC registration and positions itself as a venue for trading on future events, similar to Polymarket in that framing. The specific cases or legal questions Milbank is handling were not detailed.
Kalshi is building a war chest for parallel state litigation that has already cracked federal preemption in Wisconsin and New York. Each new state suit forces a binary choice: geofence the market or absorb contract voiding risk. Outside counsel at Milbank signals Kalshi expects the docket to widen beyond the cases already public.
For traders, contract validity now hinges on state of residence, not federal registration. The platform's legal spend is climbing on multiple fronts just as state attorneys general are coordinating tactics. The Second Circuit appeal remains the only path to a uniform national rule, but that timeline is uncertain. Kalshi must win at least one major preemption ruling or face a fragmented US market.