A landmark legal decision has reshaped the future of prediction markets, as the 9th Circuit Court of Appeals upheld states' authority to regulate platforms like gambling and sportsbooks. The unanimous ruling sided with Nevada gaming regulators, rejecting arguments that only federal oversight applies to such operations. The case centered on Kalshi, which had challenged state control, marking a significant shift in how these emerging financial markets may be governed. Industry observers now face uncertainty as regulators gain broader powers to enforce existing gaming laws.
The 9th Circuit Court of Appeals ruled Friday that states can regulate prediction market platforms like gambling and sportsbooks, dealing a heavy blow to the industry. In a unanimous ruling, a three-judge panel agreed with a lower court decision allowing Nevada gaming regulators to oversee the prediction market Kalshi, which argued only the federal government...
