Kalshi’s sports betting battle spreads to another US state

The state of Connecticut has filed a legal suit against Kalshi on Wednesday, August 26, questioning the validity of various contracts of the platform relating to sports events and adding a new dimension to a legal battle that has the potential to shape the course for cryptocurrency-related prediction markets in the United States. The state filed the lawsuit in Hartford Superior Court under the name Connecticut v. KalshiEX, LLC, No. HHD-CV-26-6230345-S. The public litigation tracker shows that Kalshi transferred the case to the federal court on the very same day under case number D. Conn. No. 3:26-cv-01382.

This disagreement extends far beyond Connecticut. Thanks to a combination of crypto-native platforms and crypto financing, prediction markets have expanded rapidly, although the platforms do not all process trades in the same manner. Artemis data shows that the total trading volume of the prediction market industry increased from about $2.0 billion on August 1, 2025, to $38.5 billion on August 1, 2026 — more than 19 times higher in just one year.

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