The prediction-market platform must obtain state gambling licenses and prohibit users under 21 to offer such contracts, a state court said.

A judge ordered Kalshi to immediately halt sports and election contracts in the state, intensifying a growing regulatory battle over prediction markets.

Kalshi CEO Tarek Mansour said one of his favorite users is "this guy who lives in Kansas" who nails inflation forecasts.

The complaint includes 20 separate counts against Kalshi, claiming the company accepted bets from Arizona residents in violation of state law.

Kalshi, the largest prediction market in the U.S., now boasts a $22 billion valuation, as it jumps ahead of its main competitor Polymarket. The investment firm Coatue Management is leading a $1 billion investment round at the new valuation, according to the Wall Street Journal. A spokesperson for Kalshi declined to comment on the raise.

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