Appeals court rules against Kalshi, says prediction markets can be regulated like gambling
Summary
A U.S. appeals court ruled that states can regulate prediction market platforms like Kalshi as gambling. The court decided Kalshi's contracts on sports events are not a type of financial swap and therefore can be controlled under gambling laws.Key Facts
- The 6th U.S. Circuit Court of Appeals made the ruling on Kalshi on a Friday.
- The court was unanimous with a three-judge panel.
- The ruling sided with the states of Ohio and Tennessee.
- Kalshi argued that its sports-event contracts were financial “swaps.”
- The court rejected Kalshi’s argument about the contracts being swaps.
- This decision means states can regulate prediction markets like gambling.
- The ruling limits how prediction market companies like Kalshi can operate.
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