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Federal appeals court rules that states can regulate betting markets
NBC Sports • • business
Key Points:
- The U.S. Court of Appeals for the Ninth Circuit ruled that federal commodities-trading law does not override Nevada’s gambling laws regarding sports wagers, marking a significant setback for the prediction-market industry.
- The 3-0 decision could prompt the U.S. Supreme Court to intervene and provide a definitive ruling on the regulation of prediction markets versus gambling laws.
- This ruling contrasts with a previous decision by the Third Circuit, which held that New Jersey cannot regulate the prediction market platform Kalshi, highlighting a circuit split.
- Approximately 20 states are currently engaged in legal disputes over whether prediction markets can offer sports-related contracts outside of state gambling regulations.
- The ongoing legal conflicts underscore the broader uncertainty and debate over the classification and regulation of prediction markets in relation to traditional gambling laws.
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