Updated

A federal appeals court ruled that individual states retain authority to regulate sports-related event contracts offered by prediction-market platforms such as Kalshi, marking the second such ruling within a month. The decision undercuts arguments from Kalshi and similar platforms that federal commodities law preempts state gambling regulators from restricting their sports-betting-style contracts. The ruling adds legal uncertainty for prediction-market operators that have expanded rapidly into sports contracts, potentially forcing them to seek licensing or exit certain state markets. It follows a wave of state-level challenges to these platforms, which regulators argue function as unlicensed sports betting.