Kalshi and Polymarket’s decision to follow Uber’s playbook — grab market share now, worry about regulators later — has worked pretty well, until now.
A Massachusetts judge this week ordered Kalshi to cease operations in the state, after regulators filed suit alleging the company was operating an unlicensed sportsbook there. The company is facing similar litigation in Nevada — and while the injunction is only temporary, and focuses on sports betting, the legal action presages the broader efforts by states to protect the lucrative revenue gambling brings in.
“I don’t know what else to call it, except for, you know, cosplaying, right?” Massachusetts Gaming Commission Chair Jordan Maynard told Semafor earlier this month, before the injunction was handed down. “If it looks like a duck and quacks like a duck, it’s a duck, right?”
Kalshi and Polymarket have both been dogged by allegations of insider trading, with users venting their frustrations over denied payouts and opaque rules. Regulators, for their part, are concerned about underage bettors and potentially criminal interference to tilt or rig real-life events.