Kalshi CEO Says New York Lawsuit Targets Prediction Markets, Same Logic Could Apply to Nasdaq
Summary
- Mansour said the New York lawsuit targets the entire prediction market industry and its business model.
- Kalshi said it faces regulation from multiple state governments despite being registered with the CFTC as a designated contract market (DCM).
- Mansour said prediction markets are growing rapidly as a disruptive industry.
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Tarek Mansour, chief executive officer of prediction-market platform Kalshi, said New York state's lawsuit is aimed not at sports events but at the broader prediction-market industry.
In an interview with CNBC on Aug. 3, Mansour said the case "is not about sports, but about all prediction markets and their business model." Kalshi operates similarly to Nasdaq, he added, arguing that the complaint could effectively be "copied and pasted" onto the exchange.
He likened Kalshi's clashes with state regulators, despite its registration with the Commodity Futures Trading Commission as a designated contract market, to the conflicts Uber and Airbnb faced with incumbent industries.
Prediction markets are rapidly growing as a disruptive industry, Mansour said, and consumer demand remains strong. Incumbent industries tend to sue first and push for changes in the law, then turn to competition and innovation only after realizing that consumer demand will not disappear, he said, adding that Kalshi is now going through that same process.
JH Kim
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