Kalshi, Polymarket handle $53B in July amid legal debates

Kalshi: Kalshi is a CFTC-regulated prediction market platform that offers event contracts on various outcomes including sports, elections, and economic indicators. It has been actively involved in litigation across multiple U.S. states challenging restrictions on its sports-related offerings, with recent appellate rulings creating a circuit split on regulatory authority. The platform's operations are central to the ongoing debate highlighted in the news about the legal classification of its contracts. Polymarket: Polymarket operates a prediction market platform with a U.S. version that is CFTC-regulated, allowing users to trade on event outcomes such as politics, sports, and finance. The company has faced recent regulatory scrutiny including a CFTC inquiry and continues to expand institutional offerings. It shares the spotlight in the news with Kalshi regarding high trading activity amid unresolved questions over whether such platforms constitute derivatives or bets under U.S. law. Legal Classification: U.S. appeals courts have issued conflicting rulings on whether prediction market event contracts qualify as swaps subject to CFTC oversight or as gambling regulated by states, deepening a circuit split. Regulatory Environment: Prediction market platforms like Kalshi and Polymarket operate under CFTC designation while navigating state-level challenges to specific contract types, particularly sports-related markets.