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Kalshi is facing a federal investigation into its event-contract submissions alongside a separate New York effort to enforce subpoenas concerning its operations in the state, according to Focus Gaming News.
The Commodity Futures Trading Commission is investigating whether Kalshi failed to properly notify the agency about some proposed contracts. Kalshi confirmed the probe to CNBC and said it is already addressing the issue.
New York seeks court enforcement of Kalshi subpoenas
In October, the New York State Gaming Commission asked a Manhattan court to order Kalshi to comply with subpoenas the regulator issued in July concerning the company’s operations in New York.
That state-level action concerns subpoena compliance, while the federal investigation focuses on how Kalshi submitted proposed event contracts to the CFTC.
Kalshi also faces legal scrutiny in Nevada. The Ninth Circuit rejected the company’s petitions for a panel rehearing and a rehearing en banc over its Nevada ruling.
Kalshi describes submission issue as procedural
Kalshi said the CFTC probe involves a limited number of submissions, many of which were never launched. The investigation reportedly includes weather-related contracts.
“The notice is about a procedural error involving the submission of a handful of contracts, many of which weren’t live. We are already addressing the issue,” Kalshi head of communications Elisabeth Diana said.
Under CFTC rules, prediction market operators can introduce event contracts through self-certification without obtaining prior approval. Those products must still comply with the Commodity Exchange Act.
CFTC chairman Michael Selig declined to comment, citing the agency’s policy on ongoing investigations.
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Source: As reported by Focus Gaming News | Latest Gambling Industry News & Updates.
