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. The 3-0 decision from the Ninth Circuit Court of Appeals is a significant blow to the booming industry, which has been operating in a grey area between gaming and commodities trading.
The ruling came from a panel of three Trump-appointed judges and originated from Nevada, where regulators tried to shut down the Kalshi prediction site. The court found 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.' The Board has taken decisive action in recent months to halt the operations of other prediction markets in the state.