On Friday, a federal appeals court blocked Kalshi from avoiding Nevada gaming oversight, intensifying a nationwide fight over who regulates the fast-growing prediction markets industry.
Kalshi Faces Regulatory Setback as Courts Clash
The 9th U.S. Circuit Court of Appeals ruled unanimously that Kalshi was unlikely to prove the Commodity Exchange Act overrides Nevada’s licensing requirements.
The decision conflicts with an April ruling by the Third Circuit, which blocked New Jersey from regulating Kalshi’s platform. New Jersey has until Sept. 3 to appeal that decision.
That circuit split raises the odds the Supreme Court will ultimately settle whether states or the Commodity Futures Trading Commission (CFTC) govern the fast-growing prediction markets sector.
