Appeals Court Rules States Can Regulate Prediction Markets as Gambling
Source Summary
The 6th U.S. Circuit Court of Appeals unanimously ruled against prediction market platform Kalshi, determining that states have the authority to regulate prediction market platforms as gambling. The three-judge panel sided with Ohio and Tennessee, finding that Kalshi's sports-event contracts do not qualify as "swaps" under federal exemptions. The ruling represents another setback for the prediction market industry.
Why it matters
The ruling clarifies that states retain regulatory authority over prediction markets and can treat them as gambling, affecting the legal framework under which prediction market platforms operate nationwide.
