Kalshi CEO Comments on Recent Ninth Circuit Ruling

Kalshi’s chief executive officer, Tarek Mansour, has commented on a recent Ninth Circuit ruling, expressing firm disagreement with how the court described his business. Mansour’s comment was made during an interview with RotoWire and follows a ruling that sided with Nevada regulators seeking to regulate prediction markets. Mansour Disagreed with How the Judge Defined Kalshi According to Mansour, the recent ruling, which contradicts an earlier ruling concerning New Jersey and prediction markets, has resulted in some legal uncertainty for his team. However, he also stated that the Ninth Circuit’s decision to side with Nevada’s regulators was based on Rule 40.11, which could be amended very soon. For reference, the ruling in Nevada could serve as precedent for other states where regulators have been trying to get the prediction markets situation under control. For reference, multiple state regulators have been opposing the prediction markets sector, insisting that it is barely distinguishable from unregulated betting. However, prediction markets have continued to insist that their products do not constitute betting and are CFTC-regulated event contracts. The CFTC previously warned state regulators against trying to regulate the prediction markets space, although the recent ruling in Nevada could embolden other states that wish to have a say. In any case, Mansour disagreed with Judge Ryan Nelson’s classification of Kalshi as a sports betting platform. While the judge pointed out that Kalshi advertises itself as “the first app for legal sports betting in all 50 states,” Mansour explained that betting could be a more nuanced word. If you’re using the word “bet” colloquially, you can bet on stocks. When you buy Tesla stock, you’re sitting with a friend at dinner and you say, “I’ll just bet on Tesla,” or “I just bet on Elon Musk,” and it’s a normal thing to basically say. Mansour claimed that even though regulators call event contracts “betting,” many Kalshi users would describe their activity on the platform as “trading” instead. CEO Mansour Teased Agreements with NFL & NBA In addition to disagreeing with how the Ninth Circuit defined his platform, Mansour’s interview with RotoWire saw him tease new agreements with the NFL and NBA. While the Kalshi CEO could not provide any specific deals, he said that such arrangements are on the table and that industry enthusiasts “should expect announcements very soon,” at least from one of the two leagues. Mansour believes that it’s only a matter of time before the NFL and NBA embrace prediction markets. Mansour’s words seem to contradict previous statements by the NFL, which suggested that the league was not considering venturing into the prediction markets space. At the same time, RotoWire learned that the NBA is finalizing a framework for prediction markets to use the league’s data and integrity monitoring apparatus. In addition to that, Mansour commented on Kalshi’s ongoing insider trading troubles and noted that he plans to use the money seized from such people for charity.