US Appeals Court Rules States Can Regulate Prediction Markets as Gambling

Key Facts

The 6th US Circuit Court of Appeals ruled against Kalshi, upholding the rights of Ohio and Tennessee to regulate sports-event contracts under state gambling laws. Cointelegraph reported that the court sided with state authorities who argued these prediction market activities fall under local oversight.

The ruling establishes that prediction market contracts tied to sports events can be subject to state-level gambling regulations rather than being governed solely by federal oversight. This decision creates a fragmented regulatory landscape for platforms operating in the United States, potentially increasing legal costs and limiting market expansion across different jurisdictions.