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More lawsuits, more insider trading claims, today in prediction market news LIVE

Today in prediction market news, we’re tracking the biggest developments across the industry in real time, from fresh lawsuits and insider trading allegations to regulatory battles, market-moving legislation, and other major stories shaping prediction markets, sports event trading, and regulated forecasting platforms. Follow our live blog throughout the day for breaking updates, market reactions, and analysis from across the prediction markets, crypto, and iGaming sectors.

Live Updated 3 weeks ago

Kalshi expands into Canada through Wealthsimple

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Kalshi is taking its prediction markets north of the border. Through a new partnership with Wealthsimple, Canadian users will gain access to event contracts directly within one of the country's largest investing platforms. The deal marks a significant expansion for Kalshi as regulated prediction markets continue to push into new audiences.

“Prediction markets are the fastest-growing segment of global financial markets, letting traders turn an opinion into a position on the factors that shape our world – where inflation is headed, what happens to rates, or how the year unfolds. Until now, Canadians have had limited access,” said Brett Huneycutt, co-founder and Chief Product Officer, Wealthsimple. “Wealthsimple Predict gives Canadians a clean, well-designed way to access these markets, with education and guardrails built in from day one.”

“Kalshi was founded on a simple belief: views on the future should have markets, and those markets should be available to everyone,” said Alex Cuoci, Kalshi. “That's why we're partnering with Wealthsimple, Canada's leading financial innovator - to give everyday investors in Canada access to fair, secure, and regulated prediction markets.”

ProphetX goes live nationwide

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ProphetX announced the nationwide launch of its platform just days after receiving CFTC approval to operate as both a Designated Contract Market and Derivatives Clearing Organization. The company is positioning itself as a federally regulated, peer-to-peer alternative to traditional sportsbooks.

"At one of the most exciting moments in the sports calendar, ProphetX is now available nationwide for more American sports fans to trade on our faster, transparent, and fully regulated exchange where the market sets the price — not the house," said ProphetX CEO and co-founder Dean Sisun. "ProphetX puts customers first, delivering deeply liquid, competitively priced markets and the best user experience in the sports prediction market space."

European regulators target unlicensed prediction markets

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Europe’s gambling regulators are closing ranks on prediction markets. Authorities across nine countries issued a joint statement warning about unlicensed operators during the 2026 FIFA World Cup, citing consumer protection, integrity, and compliance concerns. The message is clear: prediction markets that resemble gambling products will face growing scrutiny across Europe.

They state: "By allowing users to place bets on the outcome of political, sporting or geopolitical events, prediction markets have several addictive features, which are worsened by the fact that, in those countries where these platforms are not licensed, they don’t offer any safeguards: platforms are open 24 hours a day, there are no built-in betting limits apart from the amounts staked, no time limits, light identity checks to verify that users are of legal age, etc. The combination of visibility, accessibility and the viral nature inherent to this type of platform creates a significant addictive cycle.”

Robinhood hit with new California class-action lawsuit

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And the legal pressure on prediction markets keeps building. Another class-action lawsuit was filed in California alleging Robinhood’s sports event contracts amount to illegal gambling and mislead consumers. The complaint targets both Robinhood Markets and Robinhood Derivatives, adding another legal challenge as regulators and courts continue scrutinizing event-based trading products.

Robinhood suffers similar court setback

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It wasn’t just Polymarket. A Michigan federal judge also denied Robinhood Derivatives’ request for a preliminary injunction, handing states another early legal win in the fight over prediction markets. With both motions rejected, attention now turns to upcoming rulings that could further shape the industry's regulatory future.

New York cites Polymarket loss in Kalshi fight

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New York is adding fresh ammunition to its case against Kalshi. State attorneys have filed a recent Michigan federal court decision that denied Polymarket’s request for a preliminary injunction, arguing the ruling supports New York’s position.

CFTC challenges Illinois prediction market fee

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The fight between regulators and states is escalating. The CFTC has amended its lawsuit against Illinois, challenging a new law that would impose transaction fees on sports-event prediction contracts. The agency is also seeking a preliminary injunction, arguing the measure interferes with federally regulated prediction markets and designated contract markets.

Betr COO turns Kalshi into a slot machine

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What happens when prediction markets meet casino mechanics? Betr COO Alex Ursa showed off a slot-machine-style interface built on top of Kalshi’s APIs, complete with adjustable volatility and automated contract selection. The demo sparked fresh debate over whether prediction markets are evolving into something that looks increasingly like traditional gambling.

Complaint alleges market manipulation on Kalshi

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Questions are swirling after a complaint alleged potential insider trading and market manipulation related to Indiana's GOP Secretary of State contest. The claims have not been proven, and those named have not been found liable for any wrongdoing. Kalshi says it is reviewing the allegations.

CME prepares CFTC lawsuit over perpetual futures

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CME Group is reportedly gearing up to sue the CFTC over its approval of perpetual futures contracts, with legal action potentially coming as soon as tomorrow. Outgoing CEO Terry Duffy says the regulator has misinterpreted futures law.

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Suswati Basu
News Editor

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC. As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…