Prediction Market Roundup: November News Updates
Prediction markets saw major developments in November, from a class action lawsuit against Kalshi to Polymarket’s return to the US market and regulatory shifts in Nevada.
This roundup highlights the key legal and regulatory storylines shaping Kalshi, Polymarket, Robinhood, Crypto.com, and Underdog as prediction markets continue to grow.
⏳ 6 mins read
📖 Published: November 29th, 2025
✍️ Updated: November 29th, 2025
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Prediction Market Roundup: November News Updates
There is a never-ending news cycle with prediction markets, so as we close out November, let's catch you up with some of the biggest news involving the exploding market. Here are the biggest prediction market storylines from the last month, including a class action lawsuit filed against Kalshi in New York.
Key Highlights
- Class Action: Kalshi is sued in a class action lawsuit in New York, alleging that the prediction market is an illegal gambling platform.
- Polymarket Returns: Polymarket is cleared to offer its event contracts to US customers once again.
- Nevada Set Back: Kalshi suffers a setback in Nevada after its lawsuit against the Nevada Gaming Control Board fails. It could join Robinhood and Crypto.com in pulling event contracts from the state.
Kalshi News
Kalshi Sued In Class Action Lawsuit for Illegal Sports Gambling
Seven plaintiffs have filed a lawsuit in New York alleging that Kalshi "violated gambling laws" and "deceptive practices" that led to financial losses. The suit effectively argues that Kalshi is nothing more than a sportsbook masquerading as a trading platform.
The lawsuit alleges that Kalshi is not the peer-to-peer platform it claims to be due to market maker subsidiaries such as Kalshi Trading LLC and KalshiEx, which bet against consumers.
For months now, Kalshi has rejected claims that its platform is a traditional sportsbook and terms customers' actions on its platform as "trading" rather than "gambling". To be fair, unlike a traditional sportsbook where players are locked into a bet, Kalshi customers can exit a position at any time for a profit or to cut their losses.
The outcome of this case is of obvious interest to state gaming regulators who've long maintained that prediction markets are taking advantage of designated contract market licenses from the Commodity Futures Trading Commission (CFTC) to skirt state gambling laws and taxes.
Kalshi Is Subject To State Gambling Rules In Nevada
In Nevada, Kalshi suffered a major legal blow, losing its lawsuit against the Nevada Gaming Control Board (NGCB). Judge Andrew Gordon agreed with the NGCB that Kalshi should be subject to state gambling laws.
Kalshi filed the lawsuit after the NGCB sent the company a cease-and-desist letter requesting that Kalshi stop offering sports event contracts in its jurisdiction. Kalshi sued, believing the state regulator did not have the authority to make such a request on account of its status as a CFTC-regulated entity.
Initially, Judge Gordon seemed to have agreed with Kalshi, granting the company a preliminary injunction against the NGCB. However, in Gordon's final ruling, the judge noted that Kalshi's opinion would break "decades of federalism" and that it was "contrary to Congress's intent behind the Commodity Exchange Act (CEA)."
Kalshi isn't the only prediction market to face a similar setback in Nevada. Crypto.com and Robinhood lost their lawsuit against the NGCB as well and have pulled their event contracts from the state.
Polymarket News
Polymarket Is Back In The US
On November 25, the CFTC cleared the way for Polymarket to allow US customers to trade event contracts on its platform.
The return of Polymarket to US shores will provide steep competition to the current prediction market giant, Kalshi. According to data, Polymarket saw a nearly 94% increase in traders from September 2025 to October 2025.
The decision from the CFTC puts to bed a turbulent four-year period for Polymarket, where the company was forced out of the US for operating without a license and reached a dramatic climax when the FBI raided CEO Shayne Copland's apartment in New York City.
Robinhood News
Robinhood Buys Majority Stake In LedgerX
According to Reuters, Robinhood and Susquehanna International Group have acquired 90% of LedgerX (previously part of the FTX group). The deal would see the two effectively take over the regulated exchange to strengthen their position in the prediction markets space.
As part of the acquisition comes licenses to operate a designated contracts market, derivatives clearing organization, and swap execution facility. That's all of the licenses required to operate a prediction market platform, a futures and derivatives exchange, as well as a clearinghouse.
Crypto.com News
Courts Will Eventually Side With Prediction Markets, Per Crypto.com Executive
The Global Head of Predictions for Crypto.com, Travis McGhee, believes the courts will eventually side with prediction markets. That seems quite bullish, considering the company recently pulled its prediction market offerings in Nevada after losing a court case to remain in the Silver State.
To prove the brand's commitment to the future of prediction markets, they teamed up with Hollywood.com to create an entertainment-focused prediction market, such as movies, music, and awards.
Underdog News
Underdog Gives Up License In Missouri
Days before Missouri was set to open its sports betting market, Underdog gave up its sports betting licenses. There has been no official word from the company as to why they gave up their sports betting license.
However, it is widely believed that the decision to pull out of the state's licensed sports gambling market was to enable the company to bypass that state's 10% tax and costly revenue sharing. As a tethered sportsbook, Underdog was required to share its gross gaming revenues with a market access partner. Underdog's market access partner was the Kansas City Royals.
