US court rules against Kalshi, says states can regulate prediction markets

A US appeals court has ruled that states can regulate prediction markets, rejecting Kalshi's attempt to exempt certain event contracts from gambling laws. The decision by the 6th Circuit Court in Cincinnati adds to ongoing debates about oversight of these rapidly growing markets, which raise ethical and regulatory concerns. Previous rulings by the 9th and 3rd Circuits had different stances, but the recent ruling confirms that Ohio and Tennessee can regulate such contracts under their gambling laws. The case highlights the divided authority between state and federal regulators and leaves open the possibility of Supreme Court involvement.