Ross Gerber Criticizes Kalshi as Illegal Sports Betting

• Lyla Velez
• December 4, 2025
• Policy
• 0 Comments

MWXT

By focusing on transparency, not bureaucracy, MWXT delivers a governance model built on facts and function. It proves that in the modern AI-driven Web3 economy, real power comes from visibility, trust, and measurable performance, not votes.

Ross Gerber, CEO of Gerber Kawasaki, criticized prediction markets like Kalshi as illegal sports betting in a statement on X. This follows Connecticut’s legal actions against Kalshi’s operations.

Ross Gerber’s remarks highlight potential illegalities in prediction markets, raising questions about regulatory adherence. Market scrutiny affects Kalshi’s operational future amid ongoing legal proceedings.

Kalshi, a regulated prediction market, faces scrutiny after Connecticut issued a cease-and-desist order. Ross Gerber argues that such platforms resemble illegal sports betting operations. As he noted,

Prediction markets are just illegal sports betting operations that somehow have been allowed to exist… Crazy this hasn’t been stopped.

Kalshi relies on contracts framed as CFTC futures, but legal disputes continue. CEO Tarek Mansour and COO Luana Lopes Lara emphasize federal regulatory support. Kalshi is actively involved in appealing state decisions.

Connecticut’s action against Kalshi reflects broader market impacts. Digital platforms could see potential funding and liquidity challenges. The focus remains on how prediction markets adapt to increased regulatory pressures.

These events spotlight financial and regulatory complexities challenging prediction markets. The need for compliance underlines potential shifts necessary to prevent further state-level or federal enforcement actions. Industry observers are keenly watching for future regulations.

While Ethereum and Bitcoin support some prediction market contracts, no direct negative impact on these cryptocurrencies has emerged from the legal scrutiny faced by Kalshi and its peers. Understanding futures contract regulations continues to be crucial for these platforms.

Kalshi’s recent obstacles underscore a pivotal moment for prediction markets. Historical legal precedents suggest significant chances for regulatory adjustments, impacting how these platforms operate in the coming years. Industry stakeholders emphasize the future of regulation-driven business models.