Regulatory Updates
Kalshi Files Emergency Motion with Second Circuit in Connecticut Case
Kalshi has filed an emergency motion for an injunction pending appeal with the Second Circuit seeking to enjoin Connecticut state officials from enforcing the state’s gambling laws against it while the appeal is pending.
The motion follows U.S. District Judge Vernon D. Oliver’s August 15 denial of Kalshi’s request for an emergency injunction pending appeal in KalshiEX LLC v. Cafferelli. In the new papers, Kalshi argues the district court “badly erred,” that the company faces an “untenable choice” between compliance with state law and its federal obligations, and that the CFTC’s recent emergency order highlights the conflict. A similar motion remains pending in the New York case.
Source: Daniel Wallach
CFTC Argues New York Case Is Not the Forum to Challenge Its Emergency Order
In a new filing in the Southern District of New York, the CFTC stated that the New York litigation “is not the appropriate forum[] to challenge the merits” of its August 11 emergency order directing Kalshi to continue operating as a DCM. New York is expected to respond by submitting the recent Connecticut district court ruling that addressed the same CFTC order.
Source: Daniel Wallach
Company / Product Updates
Polymarket U.S. Begins Testing Parlays
Polymarket’s regulated U.S. exchange has started processing parlay trades in a beta environment. The contracts, which Polymarket calls Combinatorial Athletic Outcome Contracts (CAOCs), were self-certified with the CFTC in May. The first parlay trade occurred on August 5.
In the beta, parlays are currently limited to a maximum of 10 legs and are priced via request-for-quote. Trade data shows the beta has generated several million dollars in volume so far.
Sources: InGame
Kalshi Short-Duration Commodity Markets See Volume Growth
Kalshi’s 15-minute commodity markets have seen volume expansion. Daily volume in these short-duration markets rose from $1.1 million on August 3 to $13.9 million on August 13.
Sources: KalshiData, IcoBeast
ProphetX Reaches 2 Million Executed Trades
From ProphetX:
Gemini Expands Weather Markets
Gemini has added weather prediction markets for ten additional cities: Dallas, Atlanta, Denver, Houston, Las Vegas, Minneapolis, New Orleans, Philadelphia, Phoenix, and Seattle. All of the new markets are eligible for liquidity rewards.
Sources: Olivia Santarelli
Alpaca Derivatives Registers as an FCM
Alpaca Derivatives has registered as a futures commission merchant with the CFTC and become a member of the NFA. The move positions the company to offer event contracts through the infrastructure already used by its brokerage partners, allowing those firms to add prediction markets without building a separate regulated stack.
Sources: Finance Magnates
Other Relevant News
Alex Kane on the Practical Challenges of Geolocation
Picking up from the Nevada geofencing developments covered in The PM Pulse 024, Sporttrade CEO Alex Kane offered useful operational context on why multi-state geolocation remains difficult:
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