There are 3 separate reasons WHY states are so strongly opposing Kalshi's sports gambling: 1) Kalshi is doing it in a way that avoids state taxation, licensing and regulation, 2) the online sports gambling companies spending billions on TV commercials don't want untaxed, unregulated competition, 3) The major sports leagues are concerned it will undermine the integrity of the 'product'.

Of course, there's no material difference in actual harm to the public between Kalshi sports betting and Online Sportsbook Apps, they both enable gambling addicts, cheating, etc. The hardball reaction is about ensuring Kalshi sends tax, licensing and lobbying money to each state government. The sportsbooks have spent billions ramming gambling legalization through and don't want Kalshi getting a 'free ride' on the bus they paid for.

Even the sports league's opposition isn't as 'pure' as it appears. While they don't want players, coaches or referees to undermine game outcomes, but at the same time they sell exclusive access to real-time on-field data feeds to sportsbooks for hundreds of millions of dollars. The TV feeds we watch at home are ~8 to 15 seconds delayed. Getting the real-time outcome data from every pass, kick and run in 800ms vs ~8s on TV is worth hundreds of millions to online sports apps. When people at home make real-time prop bets on the next play, many times the company already knows the outcome. Something to remember next you see a spinner in a betting app saying "odds updating" and then "bet expired". It be might because your bet was going to win, while if you'd taken the other side, it would have accepted the bet and taken your money. Yeah, that's against the law in a casino but not in an online sports app.