U.S. Appeals Court Rules States Can Regulate Prediction Markets, Deepening Circuit Split

The 6th U.S. Circuit Court of Appeals in Cincinnati has ruled against Kalshi, a prediction market platform, asserting that states have the authority to regulate prediction markets. This decision deepens a split among federal appeals courts regarding whether state regulators or the federal Commodity Futures Trading Commission (CFTC) should exclusively oversee the rapidly growing industry. The conflicting rulings raise the potential for the U.S. Supreme Court to ultimately decide the matter, impacting the nationwide regulatory landscape for prediction markets.