1255 ET - Kalshi's parlay product could raise regulatory questions about whether it's operating as a peer-to-peer exchange, a key argument it's made against claims that it is offering illegal gambling, Benchmark analyst Mike Hickey says. It appears the prediction market platform is setting the odds in its parlays, meaning users are playing against the platform, rather than against their peers, Hickey says. "Kalshi risks crossing into territory where states and tribes could argue that its products are unlicensed sports wagers," Hickey says. Legal challenges could be a stumbling block in Kalshi's efforts to gain market share from DraftKings and FanDuel, he says.(katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

October 01, 2025 12:55 ET (16:55 GMT)

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