Appeals court rules against Kalshi, says prediction markets can be regulated like gambling

The 6th U.S. Circuit Court of Appeals issued a unanimous ruling on Friday against the prediction market platform Kalshi. A three-judge panel determined that states possess the authority to regulate such platforms similarly to gambling operations, siding with arguments presented by Ohio and Tennessee.

This decision represents a significant legal setback for the prediction market industry. By affirming the ability of states to categorize these platforms under gambling regulations, the court has established a precedent that could impact the operational landscape for similar services across the United States.