The post Massachusetts Injunction Bid Could Force $650m Liquidation and ‘Wreak Havoc’ on Kalshi appeared first on Vegas Slots Online News.
Kalshi may have to liquidate $650m worth of open derivative contracts if the Massachusetts state court approves Attorney General Andrea Joy Campbell’s request to freeze sports prediction markets in the state.
The company’s filing on Wednesday called on the court to dismiss this request. It claimed that the knock-on impact of an injunction would “wreak havoc on the entire Kalshi exchange ecosystem.”
Kalshi’s VP of Markets Xavier Sottile said that a pause in operations in Massachusetts would create a “false signal” to the market and disrupt users’ open positions across the country.
next hearing for the case is on December 9
The next hearing for the case is on December 9. The authorities in Massachusetts claim Kalshi offers a “daily gambling experience” that should be licensed by state regulators. Kalshi argues that the CFTC has jurisdictional authority and that allows it to offer its sports prediction markets across the country without individual local licenses.
States like Nevada have sent warnings or cease and desist letters to Kalshi. Massachusetts is the first to seek a preliminary injunction to block operations.
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