Kalshi Scrubs 'Bookmaking' and 'Sports Betting' From Its USPTO Filings — the Vocabulary Is Now a Legal Strategy
Kalshi's May trademark filings replaced the gambling terminology of its November 2025 USPTO submissions — which described 'bookmaking services' and 'sports betting and gambling tournaments' — with 'prediction market services' and 'trades and wagers.' The reframing lands while six state preemption suits, a pending CFTC rule, and a Congressional insider-trading probe all turn on exactly one question: is this product a financial instrument or a bet?
Kalshi has rewritten the language of its federal trademark filings. In a November 10, 2025 submission to the United States Patent and Trademark Office, the company described its business as providing "bookmaking services, namely, providing of information related to sports betting; organizing, arranging, conducting sports betting and gambling tournaments, competitions and contests." Filings submitted in May 2026 drop that vocabulary entirely, replacing it with "prediction market services" and the more neutral "trades and wagers." The substantive product has not changed — what changed is what Kalshi calls it in the federal record.
The timing explains the edit. Every major legal fight Kalshi is in turns on a single classification question: are event contracts commodity derivatives under exclusive CFTC jurisdiction, or gambling subject to state gaming codes? Six states are in active federal preemption litigation; the CFTC's proposed prediction-markets rule is under White House OMB review; and the House Oversight Committee has a pending insider-trading probe with document demands. In that environment, a federal filing in which Kalshi itself used the words "bookmaking services" and "sports betting" is a gift to every state attorney general arguing the gambling characterization. Rhode Island AG Peter Neronha's framing — "there is no substantive difference between sports betting and 'events contracts'; Kalshi and Polymarket know that, and we know that" — is exactly the argument the November filing language supported. Litigators routinely mine an opponent's own regulatory submissions for admissions; the May revision closes that exhibit.
The vocabulary cleanup arrives alongside a substantive move in the same direction: Kalshi's May partnership with the National Council on Problem Gambling, a $2 million commitment over two years that makes it the first financial trading platform to partner with the organization. CEO Tarek Mansour's statement threaded the positioning needle deliberately — acknowledging that prediction markets "like any financial trading products, come with risks" while framing the investment as setting "a new standard for responsible trading." Note the construction: responsible trading, not responsible gambling, in a partnership with an organization that has 'Problem Gambling' in its name. The two-track approach — institutional-finance vocabulary in the filings, gambling-adjacent consumer protections in practice — is what it looks like when a company is simultaneously arguing it is not a gambling business and hedging against the possibility that regulators conclude otherwise.
The deeper play is the institutional pivot. Kalshi is actively courting brokers, hedge funds, and financial firms — the same strategy visible in its April block-trade debut, the Sportradar data deal, and the perpetual-futures launch announced in late May. Every institutional milestone makes the financial-instrument characterization more credible in court: a federal judge weighing whether event contracts are commodity derivatives will notice that regulated brokerages clear block trades on them and hedge funds hold them. Critics are right that the consumer-facing product still looks and feels like betting on sports — Kalshi listed nearly 500 World Cup markets this week. Both things are true at once, and that ambiguity is not a flaw in Kalshi's strategy; it is the strategy. The company's path to durable legality runs through making the financial-markets framing true enough, in enough venues, that the gambling framing becomes the minority view in the case law. The USPTO filings are a small but telling piece of that project: when the courts eventually settle what this product is, Kalshi wants the paper trail on its side.
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Utah Files Felony Charges Against Kalshi and Its Founders — Second State to Criminally Charge a Platform
Utah filed criminal charges against Kalshi and its two co-founders, Tarek Mansour and Luana Lopes Lara, on October 28 — 13 felonies and a misdemeanor, including a second-degree 'pattern of unlawful criminal activity' count and 12 counts of online gambling promotion. The charges stem from a September sting in which an undercover agent placed 12 sports wagers verified to be in Utah. The CFTC sued Utah the day before to block state enforcement, its tenth such suit. Utah is the second state after Arizona to criminally charge Kalshi, and the first to charge the founders personally. Kalshi called it a 'crazy overreach.'
NBA Names Kalshi and Polymarket Preferred Exchanges — Leaving the NFL Alone in Opposition
The NBA announced on October 26 that it has named Kalshi and Polymarket its 'preferred prediction market exchanges,' signed a non-binding memorandum of understanding with the CFTC on basketball integrity, and expanded its DraftKings deal to include prediction markets — the first league to extend a sportsbook partnership into the category. The exchange deals bar league and team personnel from trading NBA contracts, limit permissible markets, and require sharing of suspicious-trading data, in exchange for NBA intellectual property and official data. The NBA joins MLB, the NHL, and MLS as partnered leagues, leaving the NFL as the lone major holdout — and the only league fighting the platforms in court.
CFTC Chair Says Agency Is Watching Prediction Markets for Manipulation Ahead of Midterms
CFTC Chairman Michael Selig said on October 23 that the agency is closely monitoring prediction markets for manipulation ahead of the November 3 midterms, and that it is separately scrutinizing oil market trading tied to President Trump's announcements about the war in Iran. Combined midterm open interest on Kalshi and Polymarket stood at $250 million as of October 18, with Kalshi holding 84%. Selig acknowledged the agency often catches political figures attempting to trade 'oftentimes after the fact.' The remarks highlight the CFTC's dual and somewhat conflicting role as both the platforms' federal protector and their manipulation watchdog, at a time when the agency has shed enforcement staff.