Kalshi is being closely examined for its US trademark application which could confuse people about their branding as a financial exchange versus being a betting establishment because it applies to gambling-related classes of goods.
The trademark application has raised concerns within the industry at large because prediction markets are no longer easy to define – they straddle both finance and iGaming.
The problems arise from Kalshi’s effort to secure a trademark for “prediction market” with the U.S. Patent and Trademark Office based on specified gambling and financial categories, leading to a broader application than its actual business activities. In addition, Kalshi has been lobbying for its operations to be categorized as financial rather than as gambling, so having filed for trademark protection under gambling and financial classifications may undermine any argument that it should not be categorized as a form of sports gambling by the CFTC., which currently regulates prediction markets as a type of financial derivative, allowing Kalshi and others to offer trading across state lines without obtaining traditional state-based gambling licenses.
While Kalshi works through its legal and regulatory matters, Polymarket continues to operate and develop major agreements. Recently, Polymarket entered into a multi-year agreement with MLB, reportedly valued up to $150 million.
Additionally, Polymarket has formed a partnership with LaLiga (Spain’s premier professional soccer league), further solidifying its place in the future of sports gambling and prediction markets.
