Kalshi preemptively sues Iowa, claiming risk of enforcement action

Kalshi claims in a preemptive lawsuit that there is “a substantial risk” that Iowa will take action against it after a meeting it had with state regulators.

Prediction market Kalshi has sued regulators in the US state of Iowa, claiming it did so as there was a risk of an impending enforcement action over its sports event contracts.

Kalshi sued Iowa Attorney General Brenna Bird, along with the Iowa Racing and Gaming Commission and its board, in an Iowa federal court on Wednesday, claiming there “is a substantial risk” Bird would bring enforcement action to block the company’s event contracts.

In its complaint, Kalshi said a company representative met with Bird for what was believed to be a discussion about a tax bill currently under consideration in the Iowa legislature.

Read more