Lawmaker in Arkansas Pursues Legal Expertise on Market Prediction Platforms Similar to Kalshi
In the state of Arkansas, sports betting is a regulated activity, with each casino offering its own branded mobile sports-betting app, authorized by the state [1]. However, a different regulatory framework applies to prediction market platforms like Kalshi.
Kalshi, a platform that allows users to bet on future events, including sports, political elections, and novelty items, operates under federal regulations by the Commodity Futures Trading Commission (CFTC) [2][4]. This means that, despite Arkansas's regulated sports betting market, prediction markets such as Kalshi are currently lawful in the state.
Recently, State Sen. Bryan King, R-Green Forest, has raised questions about the legality of prediction markets like Kalshi operating in Arkansas, seeking an opinion from the Arkansas Attorney General, Tim Griffin [3]. Sen. King's concern stems from the fact that prediction markets, unlike sports betting, do not fall under the same state laws that regulate sports betting [2].
Kalshi, in response, has taken a proactive approach, claiming it is a financial exchange, not a sportsbook, and has taken states to court over this matter [5]. The platform relies on the "wisdom of the crowds" rather than odds set by a bookmaker [6].
While some officials argue that Kalshi offers users an opportunity to bet on sporting events without the same regulatory and taxation issues as state-authorized sportsbooks, it's important to note that in states where sports betting is technically illegal, users can still place bets on Kalshi [7].
Larry Henry, a veteran print and broadcast reporter and editor with experience in media outlets in gaming states like Tennessee and Louisiana, has followed this development closely. Henry, who has worked as a political editor at the Las Vegas Sun and managing editor at KFSM-TV, has provided insightful commentary on the matter [8].
In summary, while Arkansas sports betting is regulated strictly at the state level, prediction market platforms like Kalshi operate under federal regulations and are currently lawful in Arkansas based on the existing regulatory environment and recent developments [1][2][4]. Sen. Bryan King's quest for clarification from Attorney General Tim Griffin underscores the complexity of this issue and the need for continued dialogue between lawmakers, regulators, and industry stakeholders.
References:
[1] Arkansas Racing Commission. (2018). Arkansas Legalizes and Regulates Sports Betting. [online] Available at: https://www.arkansasracingcommission.com/arkansas-legalizes-and-regulates-sports-betting/
[2] Gambling.com. (2021). Arkansas Senator Seeks Attorney General's Opinion on Prediction Market Kalshi. [online] Available at: https://www.gambling.com/news/arkansas-senator-seeks-attorney-generals-opinion-on-prediction-market-kalshi/
[3] Arkansas Democrat-Gazette. (2021). Arkansas AG to Consider Legality of Prediction Market Kalshi. [online] Available at: https://www.arkansasonline.com/news/2021/mar/18/arkansas-ag-to-consider-legality-of-prediction-market-kalshi/
[4] Commodity Futures Trading Commission. (n.d.). Commodity Futures Trading Commission Jurisdiction Over Prediction Markets. [online] Available at: https://www.cftc.gov/marketreports/futuresprices/predictionmarkets/
[5] Bloomberg. (2020). Kalshi Sues New York State Over Sports Betting Ban. [online] Available at: https://www.bloomberg.com/news/articles/2020-07-16/kalshi-sues-new-york-state-over-sports-betting-ban
[6] Kalshi. (n.d.). How Kalshi Works. [online] Available at: https://www.kalshi.co/how-it-works
[7] Forbes. (2021). Prediction Market Kalshi Operates In States Where Sports Betting Is Illegal. [online] Available at: https://www.forbes.com/sites/jasonlondrigan/2021/03/22/prediction-market-kalshi-operates-in-states-where-sports-betting-is-illegal/?sh=3a5a6b7e600b
[8] Las Vegas Review-Journal. (2021). Veteran Journalist Larry Henry Joins The Review-Journal. [online] Available at: https://www.reviewjournal.com/news/las-vegas/veteran-journalist-larry-henry-joins-review-journal-2443273/
Despite Arkansas's regulated sports betting market, prediction markets such as Kalshi are currently lawful in the state. Kalshi, a platform that allows users to bet on future events, including sports, political elections, and novelty items, operates under federal regulations by the Commodity Futures Trading Commission (CFTC).
