9th Circuit Rules Nevada Can Regulate Prediction Markets as Gambling

A federal appeals court on Friday dealt a significant blow to prediction market platforms, ruling that Nevada can regulate sports event contracts as gambling and rejecting their bid to block state oversight. The unanimous decision by a three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco found that the federal Commodity Exchange Act likely does not preempt Nevada's gaming laws as applied to Kalshi's sports contracts, allowing the state to proceed with enforcement actions.