(AsiaGameHub) –   Kalshi is under intense scrutiny over its U.S. trademark filing, which may muddle public perception of its brand as a financial exchange rather than a betting venue, since the application covers gambling-related product categories.

The trademark submission has sparked widespread industry concern, as prediction markets have grown increasingly difficult to categorize—they exist at the intersection of finance and online gambling.

The issues stem from Kalshi’s attempt to register a “prediction market” trademark with the U.S. Patent and Trademark Office across both gambling and financial product classes, resulting in a filing that extends beyond its actual business operations. Additionally, Kalshi has been advocating for its operations to be classified as financial rather than gambling, so submitting trademark protection under both gambling and financial categories could weaken its case that it should not be deemed a form of sports gambling by the CFTC. The CFTC currently regulates prediction markets as a type of financial derivative, which allows Kalshi and other firms to offer trading across state lines without securing traditional state-level gambling licenses.

As Kalshi navigates its legal and regulatory hurdles, Polymarket continues to operate and pursue major partnership agreements. Most recently, Polymarket entered into a multi-year deal with Major League Baseball (MLB) that is reportedly valued at up to $150 million.

Additionally, Polymarket has struck a partnership with LaLiga, Spain’s premier professional soccer league, further cementing its position in the future of sports gambling and prediction markets.