Kalshi loses appeals ruling on state powers over prediction markets

Kalshi took a legal blow as a U.S. appeals court ruled states can regulate prediction markets, deepening the company's mounting legal fight. The ruling also sets up a rift between federal appeals courts on event contracts, making it more likely the U.S. Supreme Court will need to settle the question of who can police the market.

Kalshi continues to fight state actions in court while its federal regulator, the CFTC, pursues its own new rules for prediction markets.