Federal Appeals Court Rules States Can Regulate Prediction Markets as Gambling
A federal appeals court has ruled that US states have the authority to regulate prediction markets as gambling activities, delivering a significant blow to the rapidly growing industry.
Related lawsuits remain pending across the United States, with legal experts anticipating that the dispute will ultimately be resolved by the US Supreme Court.
The ruling by the Ninth Circuit Court of Appeals marks the most substantial legal victory to date for states in their ongoing efforts to regulate prediction platforms.
The unanimous decision was handed down by a three-judge panel appointed by President Donald Trump. The case originated in Nevada, where state regulators had sought to shut down the prediction platform Kalshi.
Bets on Sports, Gold, and Weather
Platforms such as Kalshi and Polymarket allow users to place wagers on a diverse array of events, ranging from sports, culture, award ceremonies, and album releases, to weather patterns, gold prices, and beyond.