Kalshi Removes Gambling and Bookmaking Language From Federal Trademark Filings as State Legal Battles Mount

Prediction market platform Kalshi has revised the language in its trademark filings with the United States Patent and Trademark Office, removing references to bookmaking and gambling that directly contradicted the company’s longstanding public claim that it operates a financial exchange rather than a sportsbook. The change was made in a new batch of trademark applications following media reports calling attention to the earlier filings, which had described Kalshi’s services as including bookmaking and gambling-related activities.

Kalshi’s original USPTO filings used language describing its products as “bookmaking services, namely, providing of information related to sports betting” and “organizing, arranging, conducting sports betting and gambling tournaments, competitions and contests.” That language was at odds with the narrative Kalshi has maintained before regulators and courts since its founding: that it is a CFTC-regulated financial exchange offering event contracts, not a gambling platform subject to state sports betting laws.

The Legal Backdrop

The trademark revision comes as Kalshi faces a growing wave of state-level legal challenges. New Mexico Attorney General Raul Torrez sued Kalshi in early June, alleging the platform is operating as an unlicensed sportsbook after it marketed itself as “The First Nationwide Legal Sports Betting Platform.” Nevada courts have already issued a preliminary injunction blocking the platform from operating in that state.

Kalshi and the CFTC recently joined forces to file a complaint against Minnesota after that state signed legislation that would effectively ban sports event contracts beginning in August. That federal-versus-state confrontation is expected to be a defining legal battle for the prediction market industry, with the outcome potentially establishing whether federal commodity trading oversight can preempt state gambling laws across the country.

For bettors and sports fans who have been using or considering Kalshi for sports wagering, the platform’s legal availability varies by state and has become increasingly uncertain as more attorneys general file challenges. The core appeal of Kalshi for many users has been access to sports event contracts in states where traditional sports betting is not legal, particularly states like Texas, California, and others that have not yet authorized regulated sportsbooks.

Implications for Prediction Markets

The trademark language shift is unlikely to resolve Kalshi’s legal challenges, but it closes a specific gap that state regulators were exploiting. Having the company’s own federal filings describe it as a bookmaking service was an obvious liability in litigation where the core dispute is whether Kalshi’s sports contracts qualify as gambling or financial trading.

The new applications for wordmarks including Kalshi American Power Index and KPOW use language more closely aligned with financial exchange and event contract frameworks, reinforcing the company’s preferred legal identity as a derivative instrument marketplace rather than a wagering platform.

The debate has broad implications for how sports bettors in unregulated states access wagering products. If Kalshi’s CFTC-preemption argument ultimately succeeds, it could create a federal pathway for nationwide sports event contracts without requiring state-by-state legislative approval. If state regulators prevail, the platform’s availability could become progressively more restricted as individual states move to shut it down. The Minnesota case will be among the first major tests of where the courts land on that fundamental question.