The finance ministry said only contracts tied to economic benchmarks such as inflation and exchange rates may remain under financial-market rules, while sports and politics are out.
The state says the prediction-market operator missed a court deadline to block banned contracts, while Kalshi says it had already hired a Nevada-approved geofencing vendor and kept regulators informed.
Reports say the platform pulled some spoken-word contracts as regulators examine whether wagers on individual words are too easy to manipulate.
Judge Vernon D. Oliver said Kalshi’s sports-event contracts do not qualify as swaps, clearing the way for state regulators to keep pursuing enforcement.
The Delaware case comes after Underdog bought Aristotle’s exchange and clearinghouse, and while its $1.3 billion sale to IG Group is still awaiting approval.
The prediction-market exchange says its new framework builds age checks, self-exclusion, marketing limits and risk monitoring into the platform’s operating rules.
The Aug. 20 agenda pairs a prediction-markets panel with sessions on crypto and artificial intelligence, while opening comments to the public through Aug. 27.
The tentative session comes a day before the CFTC opens its new advisory panel, as states widen their legal fight over event contracts and Congress keeps debating digital-asset rules.
The city says the prediction markets disguised wagering on games, spreads and player stats as lawful event contracts.
The ruling bars wagers on sports, elections and other topics, while leaving commodities and finance contracts in place as the company adds geofencing controls.
The agency said incomplete submissions can block review of whether platforms have given proper notice and checked compliance, while some reward structures may invite manipulation.
Haun Ventures led the seed round as the start-up pitches a single execution layer across fragmented venues.