Court rules states can regulate prediction markets

A federal appeals court ruled that states can regulate prediction markets as gambling, marking a significant victory for state authority over the industry. The Ninth Circuit Court of Appeals upheld this position in a 3-0 decision, allowing states to enforce gaming laws and taxes on platforms like Kalshi and Polymarket. The ruling originated from a Nevada case involving regulators’ attempt to ban Kalshi, and legal experts expect the case to be ultimately settled by the Supreme Court.

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