The Ninth Circuit said federal derivatives oversight does not shield prediction market firms from state gaming enforcement.

Sports betting on firms such as Kalshi was the focus of questions over advertising to children, cheating from athletes and undermining regulated gaming.

The Ninth Circuit said federal derivatives oversight does not shield prediction market firms from state gaming enforcement.

The Ninth Circuit denied stays for Kalshi and Polymarket, allowing Nevada and Washington state gambling enforcement actions to proceed against the prediction markets.

The Commodity Futures Trading Commission is suing multiple states for trying to rein in Polymarket and Kalshi