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News · ▼ Bearish · 1 source confirmed · 2026-09-25 21:17 UTC

Another appeals court rules against prediction market provider Kalshi, says sports contracts are subject to state regulations

Why now

Thesis: Prediction markets face patchwork state rules, not federal cover

Catalyst to watch: Further circuit rulings or Supreme Court review

Main risk: Inconsistent state regimes fragment the market

Why it matters

State-by-state oversight raises compliance costs and legal uncertainty for prediction markets, potentially slowing US expansion of event-contract venues tied to crypto-adjacent trading.

Details

A Sixth Circuit Court of Appeals panel ruled that prediction markets' sports-related events contracts are not swaps, and therefore aren't subject to federal regulatory oversight.

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