Kalshi Disputes Gambling Label as LaLiga Partners With Polymarket

Prediction market operator Kalshi has classified itself as a gambling operator in a United States trademark filing. This designation contradicts the company’s public protestations and its intensive lobbying efforts intended to prevent its services from being legally categorized as gambling.

The trademark filing emerges as Kalshi’s competitor, Polymarket, expands its footprint within the professional sports industry. Polymarket has secured massive partnerships with global sports leagues, including Major League Baseball (MLB) and LaLiga.

Regulatory and Legal Challenges

Kalshi’s internal classification in its trademark filing stands in contrast to its operational status in the U.S. Market. Both Kalshi and Polymarket have operated in all 50 states based on the premise that they are not classified as gambling services.

However, Kalshi is facing significant legal pressure. As of December 29, 2025, the company is the subject of a nationwide class action lawsuit alleging illegal sports betting.

Social Media and Information Integrity

Both Kalshi and Polymarket have faced criticism for their promotional strategies on social media. Reports from December 29, 2025, indicated that both platforms partnered with X accounts that claimed to be sports insiders.

One such account, using the name Scott Hughes, identified itself in its bio as a credentialed men’s basketball reporter. The account was later revealed to have repeatedly posted false information.

In November 2025, during the Field of 68 Opening Day Marathon college basketball event, the Hughes account tweeted that Adrian Wojnarowski, the former ESPN NBA insider and current St. Bonaventure general manager, had been ejected from a game. Multiple reporters at the event in South Carolina refuted the claim, and a community note was added to the post stating the report was false.

Further inaccuracies were noted on December 5, 2025, when the account claimed Kentucky head coach Mark Pope had made offensive comments to a reporter. The quote attributed to Pope was found to be false.

Market Growth and Media Integration

Despite these legal and ethical controversies, prediction markets have seen substantial growth in visibility. The platforms have integrated into mainstream media broadcasts through separate agreements with CNN and CNBC to provide prediction market data.

The divergence in strategy between the two firms is now highlighted by their differing relationships with sports governing bodies. While Kalshi manages trademark and legal disputes regarding its status, Polymarket continues to formalize ties with major leagues like LaLiga and MLB.