Bloomberg Surveillance · Friday, August 14, 2026
Robert Deanlt, Head of Enforcement at Kalshi, addresses state lawsuits alleging the company operates an illegal gambling operation. He argues that state enforcement conflicts with federal preemption and emphasizes that Kalshi operates under CFTC regulation, which includes robust surveillance to detect insider trading and manipulation.
“Multiple states, including New York, suing Caushi, alleging the company is running an illegal gambling operation. This as New York City launches a separate investigation into the company and several competitors over advertising and marketing practices. This, according to The Wall Street Journal, Calshi, writing in response, obligations under federal law conflict with state enforcement. This is the exact problem with states attempting to override federal preemption and why it exists in the first place, Calshie, Head of Enforcement, Robert Deanlt. Joins us now for more. Robert, great to see you, Thank you so much for being here.”
“So take your second point first and address that that's a different platform and not something that cay She's ever been accused of doing, but generally broader concerns about insider trading and prediction markets I think fit well within the regulatory framework that we operate under. So CFTC regulation requires any registered and licensed prediction market here in the United States to have both real time surveillance and look back surveillance, where we have teams of people who monitor markets twenty four to seven to look at individuals who might have insider information or the ability to manipulate the outcome and benefit from that.”
“So different business models are regulated differently even when they touch on the same topics, right, So, insurance and banks and broker dealers are regulated differently, even though they all take money from customers and spend it in a certain way that a customer has a reasonable right to expect aligns with their interests.”