Federal Appeals Court Rules States Can Regulate Prediction Markets Like Gambling
A federal appeals court has ruled that states can regulate prediction markets like gambling, dealing a significant blow to the booming industry. The Ninth Circuit Court of Appeals made the unanimous decision on Friday, August 29, 2026, with three Trump-appointed judges ruling in favor of Nevada.
The case originated from Nevada, where regulators tried to shut down the Kalshi prediction site. The court ruled that prediction markets offering sports-event contracts constitute gambling and must comply with Nevada's gaming laws and regulatory framework.
Nevada Gaming Control Board Chairman Mike Dreitzer stated, 'We are pleased with the Ninth Circuit's ruling today in favor of Nevada. This completely vindicates what we have been saying all along. This is sports betting and needs to be properly regulated by the state.'