Prediction Markets Should Be Regulated as Gambling, Appeals Court Says

The outcome contradicted an earlier appeals court decision. Federal regulators said the split rulings called for resolution by the Supreme Court.

The Ninth Circuit Court of Appeals ruled that sports-related event contracts are not swaps, contradicting a Third Circuit ruling from April.

A federal appeals court ruled Friday that Nevada can enforce its gambling laws against sports-related prediction contracts, rejecting challenges from Kalshi and Crypto.com and dealing a major blow to the rapidly growing industry.  The Ninth Circuit Court of Appeals rejected Kalshi’s argument that its sports contracts a