Kalshi built CFTC licence from scratch, Polymarket bought one, and states sued them both

Kalshi built its CFTC licence from scratch, while Polymarket acquired one. Both CFTC-regulated prediction market platforms are now being sued by states over whether event contracts constitute gambling.

The lawsuits test whether state gambling laws can override federal CFTC oversight of event contracts, putting both platforms' operating models at risk regardless of how they obtained their regulatory status.