Regulation· ★★★· neutral·

Kalshi faces legal battles as US sports betting hits $166B

  • —Legal US sportsbooks took $166.94 billion in wagers in 2025, generating $16.96 billion in revenue
  • —35% of bettors say they now use traditional sportsbooks less due to Kalshi and Polymarket
  • —The Third Circuit backed Kalshi on preemption; the Ninth and Sixth Circuits affirmed state enforcement
  • —Montana and Kalshi mutually dismissed their lawsuits on September 17, 2026, pausing enforcement
Why it matters: A circuit split often invites Supreme Court review and will determine whether prediction markets fall under state gambling laws.
Source: Crypto Briefing
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