Court: States Can Regulate Betting Markets

The U.S. Court of Appeals for the Ninth Circuit issued a 3-0 ruling stating that federal commodities-trading law does not preempt Nevada's gambling law regarding sports wagering regulation. This decision represents the biggest loss to date for the prediction-market industry and could set the stage for a Supreme Court review. forestarrow.rest

The ruling creates a circuit split with the Third Circuit's decision that New Jersey cannot regulate Kalshi, a situation that often prompts the Supreme Court to take up an issue. Roughly 20 states are currently involved in litigation over whether prediction markets can offer sports-related contracts independent of gambling laws.