9th Circuit allows states to regulate prediction market platforms as gambling
Source Summary
The 9th Circuit Court of Appeals unanimously ruled that states can regulate prediction market platforms like gambling and sportsbooks. The decision upheld a lower court ruling allowing Nevada gaming regulators to oversee Kalshi, a prediction market platform that had argued only the federal government held regulatory authority.
Why it matters
The ruling establishes that states retain authority to regulate prediction markets under existing gambling frameworks, rejecting the industry's argument for exclusive federal jurisdiction.
