US court rejects Kalshi, allowing state regulation of prediction markets

A U.S. court has ruled against Kalshi, holding that individual states retain the authority to regulate prediction markets. The decision marks a significant judicial stance on the scope of state versus federal oversight in this emerging sector.

U.S. appeals courts have issued differing opinions on how prediction markets should be regulated, a split that now opens the issue to possible review by the U.S. Supreme Court. The decision underscores the divergent appellate rulings and the potential for Supreme Court review.