Kalshi Suffers Another Court Setback as Judges Say Prediction Markets Must Follow Gambling Law
A federal appeals court has dealt Kalshi another blow, ruling that its event-contract prediction markets cannot sidestep state gambling rules simply by framing bets as financial products. The decision sharpens a growing legal clash over whether federally regulated exchanges can offer contracts tied to politics, sports and other real-world outcomes without being treated like traditional bookmakers. The case now appears headed toward the Supreme Court, where the broader future of prediction markets may be decided.
