Prediction market giants Kalshi and Polymarket lost their bids to stop gambling-related cases against them in the U.S. states of Nevada and Washington.
Among orders issued on Thursday, a Ninth Circuit Panel denied requests from Kalshi and Polymarket to block lower-court rulings, sending the cases back to state court.
The judges said the companies failed to show they would succeed in arguing the cases instead belonged in federal court.
It is another setback for federally regulated prediction market platforms that have argued the Commodities and Futures Trade Commission holds "exclusive jurisdiction" over event outcome contracts in areas like sports and politics.
Nevada and Washington argue that those contracts amount to unlicensed gambling under their state laws.
