Court backs states' authority to treat prediction markets as gambling

A federal appeals court ruled against Kalshi, saying prediction markets can be regulated like gambling. Twenty states are currently involved in litigation over whether states may regulate prediction markets. The ruling addresses state authority over such platforms.

A federal appeals court decided against Kalshi, concluding that prediction markets may be governed by gambling rules. The ruling upholds the ability of states to oversee such platforms. It arrives amid litigation involving twenty states over whether state governments have power over these markets. The decision addresses that question of state authority, though the available summary does not explain the court's reasoning or what happens next.