A filing by Elizabeth Prelogar for PredictAction backs Kalshi’s challenge to state gambling-based restrictions, arguing prediction markets fall under the CFTC’s federal framework and serve an information-aggregation function.
Former U.S. Solicitor General Elizabeth Prelogar, representing PredictAction, filed an amicus brief in the Sixth Circuit supporting Kalshi against state efforts to curb prediction markets under gambling rules. The brief argues these markets aggregate information through prices and differ from sports betting because operators do not profit by adjusting odds. It also says state gambling laws were built around morality concerns and local economic promotion, not the federal regulatory objectives overseen by the CFTC.